Capital Insights

Review Both Transactions When a Refinance Changes the Purchase Plan

By Don McClain

By Don McClain | Founder & Principal, Medro Advisors

Don McClain reports a closed cash-out refinance involving seven residential properties; proceeds purchased business property. For a similar objective, keep one decision record for the refinance and purchase. When a payoff, condition or available-cash estimate changes, record the effect on the purchase contribution, retained reserves and funding deadline. Identify who must review the change before another commitment is made. Keep earlier versions so the decision can be traced. This is general planning guidance, not a disclosure of that transaction’s terms. Discuss the connected capital decisions with Medro Advisors. Financing requires individual review. FUNDED is forthcoming.