E100: How Smart Investors Use Cash-Out Refis to Win in Multifamily Real Estate

In this milestone 100th episode, Craig McGrouther and I share an incredible news: Preserve at Copperleaf, a 240-unit, 2003-vintage apartment community Lone Star Capital acquired in May 2024, just closed on a hugely successful 45% cash out refinance! We acquired this property for $34M and it appraised at $53.7M, allowing investors to receive 45% of their investment back while the remaining equity continues earning 8% cash flow. We break down how we achieved this through strategic timing, tax exemptions, and securing a 7-year full-term interest-only Freddie Mac loan at 65% LTV. We also dive deep into our unique anniversary-based budgeting system that keeps us accountable year-round rather than scrambling during "budget season," plus how our operations team earns bonuses based on actual performance versus budget across revenue, R&M, payroll, and expenses. Apply to attend the LSC Summit 2025: www.lscsummit.com Download our FREE Passive Investor Guide: https://www.lscre.com/content/passive-investor-guide Subscribe to our newsletter and get the FREE Underwriting Toolkit: https://www.lscre.com/resource/fof-underwriting-toolkit Learn more about Lone Star Capital: www.lscre.com Follow me on LinkedIn: https://www.linkedin.com/in/rob-beardsley Read my latest articles: https://www.lscre.com/blog