Medro Updates

Decide Which Capital Can Support the Refinance

By Don McClain

By Don McClain | Founder & Principal, Medro Advisors. Before committing an owner contribution, identify who legally owns the cash, any restrictions, the approval needed and when it can be transferred. Balances held by separate entities should not automatically become one available funding pool. Compare the contribution with the obligations of the entity providing it, and have legal and accounting advisers review the proposed arrangement. A useful capital plan identifies both the property’s need and the consequences for the source of the money.