The EconomyHow does he stimulate the economy?

There would be no preferred return .. they would share in all future cash flows at 15%, with 85% going to the LPs.  

@Jingwen Dunford taxes are an individual issue and will need to be sorted out by the LPs accountant and or tax attorney.

I get what your 'trying' to stimulate, but maybe that last MD can prescribe something...

As I said before the Roth Accounts can help stimulate growth especially in a positive income situation.

Central banks around the world have been aggressively flooding economies with cheap money which has from what I'm seeing boosted asset prices through the roof but done little to stimulate real growth.

To answer some of your questions, the way most of our investments are structured is we collectively (our firm) sponsor investments with 1-10% equity position & then each of us (principals) invest as LPs.

.- I am going to restructure a couple of my real estate businesses, into S-Corps and/or LPs by the end of this year.

The Fed has historically raised interest rates very high to slow down the economy, and reduced interest rates to stimulate it.

Those who think government should get out of housing matters don't really understand the bigger picture (I'm hearing political overtones too, LOL) it takes government to stimulate the industry and it's not just RE, influence run through durable goods, labor, raw materials, shipping and the financial industry, you pull the pug and the whole economy is at risk of going down the drain.