KEY TAKEAWAYS1. Understand what your investment goals actually are and then look at the investment opportunity and analyze how it aligns with those goals. 2. An equity model typically returns 50% to 75% to the investor. The return percentage is tied to the profit that is expected from the deal. With this model you can benefit greatly but there's also risk of losing capital. 3. A preferred return model means that you get paid out before anyone else. For example: a 6% preferred return would mean that you receive the first 6% return and management take the remaining percentage. 4. There's also a hybrid model where you have a prefered return on the front end and another that's paid out on equity gain. This is a more conservative approach or for investors who want to take a high risk but still have some level of security. 5. Another strategy is called the performance hardle. AKA "waterfalls" are when a certain level of return is being provided to investors, at that point in the return structure changes. So if you have 6% preferred return, then no one else will see returns until you have that 6% in full. 6. Look at how the sponsors are compensated when it comes to fees. Management will receive fees to "keep the lights on" and manage the property and this is normal... but if they are high... ask why. BOOKSThe Passive Investing Playbook - https://theinvestormindset.com/passive LINKSLearn more about investing with Steven at https://theinvestormindset.com/invest