LP's cashed out after refinance?

LP's cashed out after refinance?

Ryan SajderaBusiness Member
Realtor · Manhattan, KS · Member since 2016 · 170 posts · 89 votes

This is a question for the syndicators out there. Are you guys cashing out your LP's after you refinance a deal and then having the GP taking 100% ownership ?  I've heard a few different schools of thought with this so I'm curious to know what everyone else is doing! Thanks!

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  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    7y

    No. Investors typically won't accept that.

  • Rental Property Investor · San Ramon, CA · Member since 2017 · 350 posts · 611 votes
    7y

    No, Investors are members of the LLC and stakeholders. Even if they get partial or all of their capital back, they are typically in the same stakeholder position but their ROI projections goes up. Depending on the deal, a good portion of the gains are in the sale.

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