Hello, this is Shuo.
So a refinance essentially is the replacing of an existing debt obligation with another debt obligation with different terms. So in multifamily syndication, a property can be qualified for refinance after executing a value add business plan. We can use the proceeds to return a portion or all of the initial equity investing while still holding the property for infinite returns.
Even better, the investors can reinvest the initial capital to another property for compounding returns.
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Patrick Grimes is a design engineer and CEO and Founder of Invest on Main Street, LLC. His real estate holdings include general partner ownership of a multifamily and single-family real estate portfolio valued over $146M, including 1,950+ units across the southeastern United States and Texas.
He has been active in real estate investment since 2007, including purchasing land and distressed assets, renovating them, and stabilizing them for long-term cash flow. To scale his real estate portfolio, Patrick moved from single-family to multifamily investing and founded Invest on Main Street, a private equity firm specializing in multifamily value-add projects in emerging markets.