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Capital Calls: What to Know Before You Put In More Cash

You invested in a real estate syndication, fund, or partnership. Now, the operator is coming to you asking for more cash. Whether expenses went up, income went down, mortgage rates had to be refinanced, or a combination of all three, you’re on the line—do you put more cash into the deal with hopes it saves your principal, or do you walk away, take a loss, and try again? This is what we do when the capital calls come our way.

A “capital call” is exactly what it sounds like—an operator is calling for more capital to be invested in a deal. But, more often than you’d think, you don’t have to say…

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