Preferred returns in real estate allocates cash flow to certain parties in a real estate transaction meaning that these entitled parties will receive cash flow returns from the investment before other equity investors receive any portion of the profit. The priority of this investment is maintained until a predetermined threshold for returns is met, after which the profit distributions are made to any other subordinate stakeholders in the project.
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Investing in venture capital funds is inherently risky and illiquid. It involves a high degree of risk and is suitable only for sophisticated and qualified investors.