You are CEO of a real estate venture capital company investing money for pension fund clients. You are responsible to a board of directors. The company structures its deals by forming general partnerships with qualified builder developers. The company generally provides all or most of the equity capital, and forms a general partnership with a builder-developer. Then the partnership goes out and obtains non-recourse construction loans for the balance of the required funds from commercial banks. All projects, whether income properties or for sale housing projects, are sold and profits are generally divided equally between the partners Projects are not held for investment under any circumstances. It has been the policy of your firm to continually upgrade the quality of developers that you do business with. One day a gentleman we shall call Mr. Nelson arrives in your office and proposes a joint venture. You can't believe that Nelson, the foremost condominium developer in the nation, is proposing a venture with you. Talk about upgrading your partner list, this is the ultimate. Your board of directors gets wind of this and they are encouraging you to move forward without delay and get the partnership structured. Nelson presents you a pro forma that requires you to invest $6 million of equity capital and upon final sale of the completed and leased office building There will be an estimated profit of $6 lion to be divided equally between the partners The project will take two years to years to build and sell so that $3 million that you will