
The Multifamily Wealth Podcast #214: Three Important Questions To Ask Your Sponsor/GP If You're Hit With a Capital Call
In this insightful solo episode of the Multifamily Wealth Podcast, we dive deep into the critical questions every Limited Partner (LP) should ask when faced with a capital call. Capital calls can be a sign of underlying issues in a deal, and it's essential for LPs to understand the implications and make informed decisions.
Plus, I share an "honorable mention" question about the consequences of not contributing to the capital call and discuss the sunk cost fallacy, which is crucial for making informed decisions.
In this episode, we discuss:
- Understanding what a capital call indicates about the health of your investment
- The top three universal questions you must ask your sponsor or General Partner (GP) when a capital call occurs
- Additional deal-specific inquiries that could impact your decision-making process
- Insights into the sponsor's commitment and the importance of their additional capital contribution
- The purpose of the capital being requested and its alignment with the original business plan
Struggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.
Are you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities.
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