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Updated over 1 year ago, 05/24/2023
The more deals you are in, the more upside you are participating in. Redeploy your $!
Isn’t it better to be in 2 real estate deals than 1, 10 deals than 5, or 20 deals than 10?
You make your BIG money on the buy, then the sell. Cash flow is nice, but chances are you won't get rich on cash flow alone.
Syndication investors (and investors in general) must take advantage of the opportunity to redeploy their capital once they receive their refinance proceeds.
It's true when you receive, let's say, 50% of your capital back, you are now earning a preferred return on a smaller amount of money, so you're getting less cash flow in that deal (even though it is likely your COC% went up - more efficient)
But if you take that 50% that you received back, and reinvest it in another deal, now you are earning cash flow in two deals, but what is more important, you are now sharing the upside in two deals, not just one.
Refi and Redeploy.
Don't get so hypnotized by the set-it-and-forget-it mentality that you don't continue to make your money work.
Take advantage of the opportunity to build massive equity and grow your wealth.
When you get that money back from a refinance, redeploy it.