Kim Lisa TaylorSecurities Attorney, Founder, Syndication Attorneys, PLLC · Corporate Securities Attorney, 2x Best-Selling Author, Nationwide Speaker | Private Placement

Navigating Capital Calls in Real Estate Syndication

6 May 2024 · 1 min

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In this instructional segment, the speaker outlines how to handle a capital call in a real‑estate syndication. They stress the importance of transparent communication with investors by presenting an updated property package that details the current status, planned milestones, and the specific external factors that caused delays—factors that were previously disclosed in the private placement memorandum. The speaker advises explaining that the setbacks are not due to investor neglect, then laying out a clear remediation plan that shows how the additional capital will be used to salvage the project and what the expected end‑state looks like, thereby maintaining trust and confidence.

Chapters

So if you say we need to do a capital call, I'm going to— please come. I want you to hear what's going on on the property and how we're going to spend the money. And so you do a whole new property package that shows this is where we are right now. This is where we plan to be. Here's the things that happened that delayed that progress or the impediments that caused us to get to where we are. Usually they're not because of your neglect. It's because of outside forces. And they were all warned of those outside forces when they read the private placement memo. So all you're doing is saying, yep, told you about it, that it could happen, and some of it did. Now we're trying to work through it. Here's what we need to still do. Here's how we can salvage this. Here's what we see at the end of the tunnel.