Real estate developers offer a number of enticements to investors in their projects. The first is a preferred return, and the second is a share of the profits.
A preferred return is similar to the interest that might get on your bank account, except that your bank interest is guaranteed by the federal government and the a real estate preferred return is not.
As with everything in real estate investing there are nuances to these returns worth learning about. Adam Gower of Gower Crowd illustrates how you can identify the specific nuances of any given investment opportunity using real project examples on Small Change.
Take a look.