Consider the following scenario. Then determine whether each option would be a viable way to maximize investor returns.

Scenario: You are managing a CRE property on behalf of an investor. Due to market conditions, the returns you expected to achieve over a five-year period materialized in only three years. Because property value increased so much, you know that youd be able to maximize your leverage and cash out the investor. We understand that the investors profile is to buy value-add properties and hold for a maximum of 5 years then sell and reinvest in another property. Additionally we are in a rising rate environment where financing costs are much higher than your existing loan terms

Each statement presents a possible way to maximize investor returns given the above scenario. Determine whether each statement is true or false.

1. To maximize investor returns, you should advise that new debt be placed on the property. True or False
2. Advising the investor to refinance the property and cash out the remainder of the proceeds is a viable way to maximize investor returns. True or False
3. Advising the investor to refinance the property and cash out the remainder of the proceeds is a viable way to maximize investor returns. True or False