How investors are paid

[Mark Neiger]

I'm still a little fuzzy on the details of how an investor might be paid. I hear lots of talk on here and in the podcasts about getting investors X% return on their money but what does that really mean? Is it the percentage for one year or is it over the course of many when the property is sold or refinanced? Do they get a monthly payout of net income? I want to start looking for investors but this is the part of apartment investing I understand the least. Does anyone have any good resources or could someone give some actual examples of what this might look like? Say I have someone who is willing to put up $50,000. How long will their capital be tied up, when will they get some or all of the return? What percentage of ownership would they have vs. me?