#214: Three Important Questions To Ask Your Sponsor/GP If You're Hit With a Capital Call
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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
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243 episodes