Plus it’s a floating rate, so if you are using it to brrrr a deal, once you complete the plan on that acquisition, refi it, and use the proceeds to pay it back down, the interest rate on that cost of capital effectively becomes zero.If you refinanced the existing property, your cost of capital on any subsequent new deal would be baked in at the new rate on your new debt.In regard to refinancing your current current property, I would look at your current return on equity to make that decision.

After stumbling upon Rich Dad Poor Dad at the library, and subsequently checking out all every real estate book in the library, I'm HOOKED! 

However, the challenge lies in securing the necessary funds to acquire these established enterprises.

- How quickly were you able to move on to your second and subsequent deals?

Also, become additionally insured on their policy to be notified of any nonpayment and subsequent loss of coverage.

Regardless of whether you offer investors a share of profits or fixed returns, it is still a common enterprise (everyone pooling money to acquire a single property) and if they are passively investing and relying on you to generate their profit - what you are offering will likely be considered an "investment contract" (which is a security), so you still have to comply with securities laws.

In this scenario, you would receive $7,000/year (usually monthly or quarterly distributions) before the operator gets any share of the profits.It's important to note that a Preferred Return is not a guaranteed return so you won’t necessarily earn the Preferred Return in the first or subsequent years.

We’ll outline the three main metrics you should pay attention to when investing in your first or subsequent passive investing opportunities below.Cash on Cash Return (COC)The cash-on-cash metric is really important for the cash flow investor that is trying to replace their W-2 income in order to leave their job or for those that have already retired and need to have consistent and steady income.

The other option is if you have a propstream account and check who paid all cash for properties as they may have taken a subsequent loan from a private lender.

@Daniel Ng I worked with them (turnkey purchase in 2016 and subsequent use of their sister company REI Management Services, which recently had a name change to something like “1st Choice Properties.”)I would not recommend them.