Multifamily Investors Are Out of Cash

Episode #455

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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 yes. *Kathy recently told an operator “no” when they needed another sizable investment.* Why? The money wasn’t going to the right place, and it wouldn’t have saved (or improved) the deal.

So *how do you know when you should put in more money?* Today, we’re talking all about capital calls—when to invest, when to walk away, what to ask for, when there’s fraud, and the three rules we personally follow before putting another dollar into the deal. *More capital calls are coming,* and you'd better be prepared before they do.

Episode Show Notes:
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What to Know About “Capital Calls” As Multifamily Syndications Get “Squeezed” w/Brian Burke and Mauricio Rauld:
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