In this episode of the Major League Real Estate Podcast, Nathan Sosa and Matt Hamilton dig into one of the most powerful and riskiest tools available to general partners: the Deficit Restoration Obligation (DRO).

Nathan and Matt walk through:

- What a Deficit Restoration Obligation actually is, and why it allows you to go negative in your capital account

- When DROs show up in operating agreements and why they usually don’t

- Why DROs are considered a “tool of last resort” in tax strategy

- The difference between limited and unlimited DROs (and the consequences of both)

You’ll also hear about real-world client experiences, handshake deals gone sideways, and why working closely with your CPA and attorney is non-negotiable when DROs are on the table.

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