I've gotten involved with approximately 10 other sponsors over the last one and a half years. BAM Capital's level of communication and presentation is the most professional.
I have many years experience as a financial Executive in Private Equity owned companies and am very impressed with the sharp, diligent, and methodical manner in which Ivan and his team run their businesses and work with their limited partners. I have invested in several projects and have been very satisfied with the results thus far.
My husband and I were looking for a profitable passive investment that would allow us peace of mind. We were impressed with BAM’s low-risk business model and the professionalism of their team. We chose to invest in the BAM Fund as a way to diversify our investment over multiple assets and have been pleased with the returns and timely reporting.
I have had the pleasure to work with BAM Capital on multiple occasions and capacities and couldn’t be happier! Exceptional customer service, supportive staff, and most importantly, the management team is there for you. I can't speak highly enough of BAM, the staff, and their care for their partners
I have been very happy with Ivan and his team of professionals. I have experience with five other real estate companies in a similar investor role. In this type of limited partner relationship, timely reporting and transparency are key to instill confidence. BAM has met or exceeded my expectations. I plan to continue to invest with this team for the foreseeable future.
Sometimes investing seems cold and impersonal. However, for us, investing with BAM feels like a warm, high-touch, professional experience. Their team is dedicated to financial success for all, and we appreciate the attention to detail, and care for their community.
A syndication, at its core, is a partnership. It involves multiple parties pooling their resources together to acquire an investment property. General Partners (GPs) are responsible for the execution of the business plan while Limited Partners (LPs) assume a passive role. By investing their capital, Limited Partners collect the greater part of the profits and can often times find more success by partnering with experienced operators rather than using their own time and energy to find, manage, and dispose of the investment alone.
The obvious benefit of a Fund is diversification. The investor in a Fund is instantly diversified across multiple assets. A Fund portfolio can contain 10 to 20 separate investments spread across a broad geographic area. This can lower risk compared to owning a single asset. The effects of a poorly performing deal are muted by the other, better performing properties.
The fund is not a REIT (Real Estate Investment Trust). When you invest with BAM Capital in the fund, you are a partner in the actual, physical property. You get the advantages of the ownership of that building, the tax advantages, the cash flow, and the upside.
BAM Capital looks at 200 assets to find one that has the ability to distribute cash monthly and gives a high degree of confidence that BAM Capital can execute its value add strategy. So, when it comes time to sell, the targeted returns can be delivered
The preferred return is a preferential rate of return that the LP receives before the GP participates in any cash flow or profit on a given asset.
Historically, the Midwest hasn't boomed or busted. In fact, Indianapolis for example, rent growth has been 2.9% for almost 40 years. It's the tortoise versus the hare theory of investing.
BAM Capital loves the suburbs. BAM Capital targets workforce housing, B+, A-, secondary tertiary markets, while avoiding the urban core.
Your liability is limited to the capital that you invest.
As usual, investing in real estate provides tax advantages. Investing in multifamily amplifies it, both in accelerated depreciation and the ability to shelter cash flow.
BAM Capital now offers investors both Series A and B share options when it comes to investing in its Fund. "Series A" shares gives the investor an option at higher yield from the start, while the "Series B" shares offer higher capital appreciation advantages on the back end.
No matter which asset you invest into the fund, you (as the LP) are an owner in all the assets inside the Fund. Whether it's $50,000 or $5M, your capital is spread across a portfolio of apartments versus a single asset.
No. The properties are not cross-collateralized. Each asset is its own special purpose entity and has its own debt.
Investors at BAM Capital have access to industry leading technology. In our investor portal, you have 24/7, 365 access to the reports that come out quarterly, the accounting for distributions and capital events, as well as a repository of tax documents. In addition to a portal, BAM Capital has a great in-house Investor Relations team ready to hop on the phone and respond to an email or text.
As the deal sponsor or GP, Ivan Barratt and his partners put actual skin in the game in the form of capital and personal guarantees of their balance sheets against any debt.
Entering the fund early means the preferred return clock starts ticking for you earlier. If you join later, you're missing out on that window of preferred return. On the exit of the property, your percentage return might look higher, but your multiple (your dollars in versus dollars out) is going to be a little bit less, due to that loss of that preferred return.
Investors can allocate and increase their position size in any round.
Nearly every retirement account product including IRA 401k and Roth IRA can actually be self-directed. If you're looking for help in this area, BAM Capital can't offer advice, but can certainly help point you in the right direction to unlocking your retirement funds and using them to invest in apartments.
The bad news is that you can't 1031 into the fund. However, there's still some good news. The losses that you receive as a member of the fund can oftentimes offset the gains you may have from the sale of that asset. So again, while you can't technically 1031 oftentimes you can achieve the same effect and not pay taxes.
At this time, BAM Capital will drawdown, also known as calling capital, a to-be-determined amount of subscribed commitment in order to close on a specific asset. As more assets are identified, you will receive future drawdown notices. Your uncalled capital will get priority in the next drawdown over subscribers who joined the Fund at a later date.
The capital that you invest into BAM Capital's offerings should come from the long-term, illiquid portion of your portfolio. While the Private Placement Memorandum (PPM) has a provision for returning capital early for specific situations, you should expect some level of discounted returns if you exit early.
From start to finish, BAM Capital handles the process of finding high-quality real estate opportunities and negotiates the purchasing and financing on your behalf.
BAM Capital’s focus on B- to A+ multifamily assets with upside potential offers investors a low-risk opportunity with lucrative assets.
The capital value of each asset is increased by reducing expenses and increasing rents. BAM Capital’s vertical integration model mitigates investor risk.
You reap the benefits of your cash flow-positive assets in addition to BAM Capital’s best-in-class operational oversight and management services.