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Question: 1 / 400

What term describes the profits shared among real estate syndication investors?

Dividends

Returns on equity

Distributions

The term that accurately describes the profits shared among real estate syndication investors is "distributions." In the context of real estate syndications, distributions refer specifically to the money paid out to investors from the income generated by the property, such as rental income. These payments are typically made on a regular basis and can vary depending on the performance of the investment and the terms outlined in the syndication agreement.

Distributions are distinct from dividends or capital gains, which relate more to corporate profits or profits realized from the sale of an asset, respectively. In real estate syndications, the focus is on the cash flow generated by the property and how that cash flow is allocated to the investors. Returns on equity refer to the profitability relative to the amount invested, but this term does not specifically describe the payments made to investors. Therefore, distributions is the most appropriate term for this context.

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Capital gains

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