Capital calls are additional money requested from equity owners to bridge deficits in construction or operating costs. These calls often happen due to initial underfunding or unforeseen expenses.
Financial risk refers to the increased potential for volatility in investment performance created by the use of borrowed money. This concept is closely tied to leverage and equity investment, impacting the overall financial stability of an investment.
With over 3,000 definitions (and 30,000 Quizes!), our Lexicon of Real Estate Terms equips buyers, sellers, and professionals with the knowledge needed to thrive in the real estate market. Empower your journey today!