A silent investor owns 20% of Property 1. I am willing to do a cash out refinance in the next few months. Will the silent investor also be attached to the purchase of property #2? Before purchasing property 1, we aligned on a buy and hold strategy but didn't discuss cash out refi options.
A silent investor owns 20% of Property 1. I am willing to do a cash out refinance in the next few months. Will the silent investor also be attached to the purchase of property #2? Before purchasing property 1, we aligned on a buy and hold strategy but didn't discuss cash out refi options.
Seems as though it depends on the agreement made with said silent investor. If you just need to pay them back the 20% they are owed, then you pay him out of the proceeds of the cash out and net the remainder. If you do not need the silent investor for property #2, then you don't use them.