Syndication refinance question--what happens at this event?

[Travis Doyle]

Hi guys!

I want to thank the very many kind, knowledgeable people here on BP for all the help. I have a quick question. If I raise money through syndication. Let's say 100k purchase with a holding period of 3-5 years. We cut ourselves 30% equity in the deal. At the end of that holding period, we refinance after the property is worth 200k and take 150k out. We dish out cash flow pro-rata during the holding period.

2 questions:

1) What does the cash return at the refi event look like? Who gets what? I assume we just split the 150k by equity ownership at that point? i.e. I take 50k for myself and the other 70% get 100k.

2) What about the remaining 25% equity left in the property? What does the sponsor do with it? What is the industry norm for this? Does the sponsor usually buy them out?

What essentially happens after the refi? I would think a sale closes the deal, but it seems that a refi keeps it open indefinitely?