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WCI #252: Real Estate Q&A with Passive Income MD's Peter Kim

White Coat Investor Podcast

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I've Got My Capital Back, but I Still Own One % of That Building, Right?

If a refinance happens, your investment in the property remains the same. You don't lose your stake in the investment. Your preferred return is based on the amount of capital that's technically still in the deal. But when they give you back that capital, they no longer have to pay you that preferred return but they will still pay you based on whatever,. The equity split is what they determine.

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