Ignoring Capital Calls Can Cost You

By Mark Kenney | Think Multifamily

Nobody wants to talk about capital calls.

But pretending they’ll never happen? That’s where real damage begins.

Here’s what we’ve learned the hard way: Waiting until you have to ask for money means you’re already behind, and your investors know it.

Capital calls aren’t always a red flag.

In many cases, they’re the smart play: the thing that keeps the deal alive.

The real failure? Acting like they’re off the table… and leaving everyone blindsided when reality hits.

Real Story

We’ve watched deals get hit with sudden expenses:

• Skyrocketing insurance premiums
  

• Unexpected property tax jumps
  

• Rising debt payments

The operators froze.

They hoped cash flow would bounce back.

They stayed quiet — waiting, stalling, avoiding hard conversations.

By the time they finally approached investors? The damage was done.

It wasn’t just about the money. Trust had already been lost.

What You Should Do Instead

Tell the truth — from the beginning.

Smart operators:

✅ Raise more than they “think” they’ll need

✅ Build cash flow models that assume trouble will come

✅ Set investor expectations upfront: not after the fact

✅ Communicate consistently: especially when things go sideways

Most investors can handle tough news.

What they can’t handle is feeling like they were the last to know.

Bottom Line:

Capital calls don’t kill deals. Lack of planning and silence do.

Hope is not a strategy. Preparation is.

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