E100: How Smart Investors Use Cash-Out Refis to Win in Multifamily Real Estate

In this milestone 100th episode, Craig McGrouther and I share an incredible news: Preserve at Copperleaf, a 240-unit, 2003-vintage apartment community Lone Star Capital acquired in May 2024, just closed on a hugely successful 45% cash out refinance! We acquired this property for $34M and it appraised at $53.7M, allowing investors to receive 45% of their investment back while the remaining equity continues earning 8% cash flow.

We break down how we achieved this through strategic timing, tax exemptions, and securing a 7-year full-term interest-only Freddie Mac loan at 65% LTV. We also dive deep into our unique anniversary-based budgeting system that keeps us accountable year-round rather than scrambling during "budget season," plus how our operations team earns bonuses based on actual performance versus budget across revenue, R&M, payroll, and expenses.

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