refinancing a syndicated deal to hold long-term
Question about refinancing a syndicated deal.
Goal: I want to start syndicating self storage facilities. The long-term goal is to refinance the syndicated deals around the 5 year mark to pay back the principal invested and hold the facilities long-term. Once the refinance is complete and the principal is paid back, the percentage of ownership would change.
Example: The Limited Partners will get an 8% preferred return plus a 70/30 split with the LP's getting 70% and I (general partner would get 30%). Once the principal is paid back at the refinance, the preferred return would end and I would now get 70% and the limited partners would get 30% (they have the option of getting bought out if they no longer wish to stay in the deal). Every deal is different so this is just an example.
Question: I have been reading more and more about how most commercial loans require the borrower to have a net worth of what the loan amount is. During the refinance do any loan requirements change? If the limited partners want to be bought out and the refinance will leave just me as the owner...how much will the banks look at my net worth as part of the approval? Even if all investors stay in at the 30%, how will that effect the approval process?
Thanks for any help.