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

James: Every real estate investor eventually faces the same version of the same problem. A deal needs more cash than expected. For an individual owner, it might be a major repair, prolonged vacancy, rising expenses, or refinance shortfalls. In a partnership or syndication, that request may arrive as a formal capital call. The structure is different, but the underlying decision is the same. Will adding more money protect a sound investment and cover the plan that no longer works? I’m James Dainard stepping into the host seat for Dave Meyer, and today I’m with my co-host, Kathy Fettke, and we’re talking about why real estate deals run short on cash, how investors should evaluate the next move, and what situation can teach us about underwriting, reserves, debts, and risk in the current market. This is on the market. Let’s get into it. Kathy, how are you doing? Kathy: I’m doing great. I’m excited about this topic. There’s so much to talk James: About. Yeah. And capital calls, I mean, to keep it kind of simple for everyone, it’s when you’re buying a property, you’re using a proforma. These are your projections on the deal, whether it’s a rental property, it could be a development deal, ...