There is always a risk that a particular real estate project will require more money than anticipated. RealtyShares generally attempts to negotiate provisions in the sponsor's operating agreement so that the RealtyShares investment vehicle will not be obliged to participate in any request for additional capital (a "capital call"). We also try to limit the amount of dilution, or interest rate payable, that may occur where some sponsor-level investors contribute additional funds and we do not. Investors should review the applicable investor package for more information as to the potential consequences of not participating in a sponsor's capital call.
Articles in this section
- How do investors earn returns?
- I've made my first investment, what should I expect next?
- How does the investment process work?
- Are these Investments liquid? When will I get my investment back?
- Where are funds transferred through RealtyShares deposited?
- What kind of updates will I get about my investment?
- What if more money is needed for the property?
- What happens if the target funding amount is not met?
- Is there a minimum/maximum investment amount?
- Can I Invest through an IRA?