Imagine the discomfort of reaching out to your investors, your friends and family, asking for more money to keep things afloat. It's a scenario you'd want to avoid, but sometimes, it's inevitable. It could be due to unexpected expenses like a lawsuit, deferred maintenance, or an unforeseen event not covered by insurance.There are two common ways to handle this. One is treating it like a loan. You ask your investors for an additional sum, say $500,000, and promise to repay them with an agreed-upon interest rate. This ensures they get their money back before any other distributions are made.The second approach is a mandatory capital call. Here, you ask each investor to contribute a specific amount, reflective of their equity share. Say, each owns 10% so they need to contribute $50,000. If they don't, their equity share decreases by more than the unpaid amount.While the second approach might seem confrontational, it's sometimes necessary. The point here is that, as a syndicator or fund manager, you should consider these possibilities and include them in your operating agreement. It ensures transparency and protects all parties involved.Read more about PPMs - What is the purpose of Private Placement Memorandum (PPM)?: https://www.moschettilaw.com/do-i-need-a-ppm/Read more about real estate syndication How To Syndicate Real Estate: https://www.moschettilaw.com/how-to-syndicate-real-estate/👇 SUBSCRIBE TO THE MOSCHETTI SYNDICATION LAW GROUP YOUTUBE CHANNEL NOW 👇https://www.youtube.com/channel/UCVh1CNQULC45Bh6j4WV2sjA?sub_confirmation=1Check out these Top Trending Blog Articles – 1.) What is Reg D? The King of Securities Exceptions - https://www.moschettilaw.com/reg-d/2.) What is Syndication? Raising Outside Capital For Investment - https://www.moschettilaw.com/syndications-and-funds/3.) Private Placement Memorandums for Syndications and Funds - https://www.moschettilaw.com/private-placement-memorandum-attorney/4.) Real Estate Syndication: Raising Investment Capital For Properties - https://www.moschettilaw.com/real-estate-syndication/Moschetti Syndication Law Group is a boutique syndication law firm, serving small and growth-bound syndicators, and well as private equity firms. We keep our firm ‘boutique’ size so we can tailor the services to each client’s unique needs without turning the firm into a faceless factory or passing unnecessary overhead expenses onto our clients. (As our client, you’ll only pay a fixed fee, so no surprises.) As for the client experience, we give real-time answers without making you book an official appointment. And we’ll work with your ambitions and overall vision to help you close the current deal and fill-in that ‘missing’ piece - whatever you need - to keep adding more syndications to your portfolio. We keep syndicators syndicating (TM).★☆★ CONNECT WITH THE MOSCHETTI SYNDICATION LAW GROUP ★☆★YouTube: https://www.youtube.com/channel/UCVh1CNQULC45Bh6j4WV2sjA?sub_confirmation=1Facebook: https://www.facebook.com/syndication.attorneys/LinkedIn: https://www.linkedin.com/company/moschettilawMessenger: https://m.me/tildenmWeb: https://www.moschettilaw.com#Syndication #PrivatePlacementMemorandum #PPM------Disclaimer------Also, please note, this video and any content from Moschetti Syndication Law Group, Tilden, or anyone affiliated with either or both, does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.  Information from these online sources may not constitute the most up-to-date legal or other information.No viewer, user, or browser of content from us should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.