Investor payback options

[Tim Davis]

From what I can gather an equity waterfall applies after the property is sold? LP gets their initial investment and preferred return. Then the GP gets a catch up of say 20%. Then the LP-GP split is 80/20.

What if I don’t want to sell the property and hold the newly constructed building long term? What if I want to pay back the investors that funded the equity portion of the cost. How do I structure paying back the investors with their returns then keep the building for myself? Is that thru just a refinance. Trying really hard to my head wrapped around how to do that. Please help!