Summary QuestionJames created a real estate syndication to purchase a multi-family building. He of

James created a real estate syndication to purchase a multiQuestionJames created a real estate syndication to purchase a multi-family building. He offered to pay his investors an 8% return first, after which he will split the remaining profits 50/50. What is the 8% return referred to...? Preferred Return Liquidity LeverageAnswer & ExplanationThe 8% return that James offered to pay his investors first is referred to as a "Preferred Return."Explanation:1.Preferred Return:oThis is a common term in real estate syndications and private equity investments. It refers to the priority payment given to investors before any profits are split between the general partners (like James) and the limited partners (the investors).oIn this scenario, the 8% preferred return means that investors will receive an 8% return on their investment before any remaining profits are distributed.2.Liquidity:oLiquidity refers to how easily assets can be converted into cash with