Real Estate Investors - Please Help

[superdog]

Long story short, a buddy from school reached out as he works in real estate. It is his company along with two partners whom I do not know.

Do I trust this guy? As much as I trust anyone else, which is to say, not really. But he is a good guy. Or at least he was. We have kept in touch, but it has been 20 years since school.

That said, he is buying an apartment building and offering shares at $12,500 each. Basically a 10 year payout to regain capital and then it is all gravy. I am fine with all that.

My attorney brought up a few red flags. I am over all of them except one:

2. Additional Capital Contributions – Paragraph 2.5, 2.5.1 of the Operating Agreement (In the event that a Member does not timely pay to the Company that Member’s pro rata share of such Required Additional Contributions, it shall be considered a default…)

Basically, this is saying that if they want more money, and the partners decide collectively that it is necessary, I am responsible to pay potentially double my money or lose my initial investment.

Is this normal? Does anyone have any experience or guidance they can provide on something like this?

It would be appreciated.

Thanks,