Why Certified Financial Planners Love Multifamily Real Estate for Accredited Investors


Certified financial planners are professionals who have extensive knowledge in the field of financial planning. They are therefore qualified to provide comprehensive financial advice to clients across various aspects of their financial lives, including investments.

Interestingly, more and more financial advisors are recommending multifamily real estate investing over the stock market, and here we will discuss some of the reasons why.

Multifamily investing is the process of purchasing a real estate investment property, specifically a residential real estate asset that consists of multiple housing units. Multifamily properties such as duplexes, triplexes, apartment complexes, and condominiums can support multiple tenants unlike single family properties. Multifamily investing may involve two units to hundreds of units, depending on the investment property. [1]

Multifamily real estate investments could offer you multiple advantages, and a certified financial advisor will encourage you to consider adding it to your investment portfolio.

Why Certified Financial Planners Love Multifamily Real Estate for Accredited Investors

There are many ways to add real estate investing into your investment portfolio. A real estate investor may go for a real estate investment trust (REIT) or try their hand at flipping houses. But a certified financial planner may recommend multifamily real estate investing especially for accredited investors who have sufficient investing knowledge and experience.

Apartment complexes and townhouses are known to provide a strong and stable cash flow. Owning a large multifamily property promises great returns, diversification, and tax benefits. It’s important to note that even real estate investing has its risks and considerations, so investors still need to perform their due diligence even with multifamily investing.

With that in mind, let us take a look at some of the reasons why certified financial planners find multifamily real estate attractive.

Tax Benefits of Real Estate Investments

Tax strategy is an important consideration when pursuing investment opportunities. Real estate investments offer various tax advantages, including deductions for mortgage interest, property taxes, and depreciation, which can help reduce the overall tax liability for investors. These advantages may help investors round out their investment strategies. [1]

One significant tax benefit is the ability to depreciate the value of the property over time. The IRS allows investors to deduct a portion of the property’s cost as depreciation each year, which can help reduce taxable income. Depreciation is a non-cash expense, meaning you don’t have to spend money out of pocket to claim the deduction.

Because multifamily properties consist of a network of mechanical systems including electrical, plumbing, air handling, and roofing, property owners are able to “expense” a certain portion of the property’s value each year to account for the physical structure’s deterioration. This serves to reduce the property’s net operating income, which in turn reduces the property owner’s tax liability. [2]

The more depreciation than can be taken in a given year, the larger the potential tax benefit.

Multifamily investors can also deduct mortgage interest payments as a business expense, further reducing taxable income. This deduction can be significant, especially in the early years of the mortgage when interest payments are higher.

Additionally, many operating expenses related to the property, such as repairs, maintenance, property management fees, utilities, and insurance, can be deducted from the investor’s taxable income. Properly tracking and documenting these expenses is crucial.

Investors may also enjoy tax benefits in the form of a 1031 exchange, which is a provision in the tax code that allows investors to defer capital gains taxes when selling a property and reinvesting the proceeds into another “like-kind” property. This can be a powerful strategy for continually growing your real estate portfolio while deferring tax obligations. [2]

Cash Flow Benefits of Real Estate Investing

A multifamily property offers investors stable cash flow from tenants paying the rent. Thanks to its multiple units, investors can generate consistent cash flow and enjoy predictable returns that can cover expenses and generate profits. [1]

Some investors take it a step further and create multiple sources of income by offering parking spaces, laundry services, ATM, cell phone tower rentals, etc. Another potential source of income is from getting exclusivity deals with cable and phone providers who provide compensation to owners. [3]

Multifamily properties do not have to worry about vacancies because there are several units that can generate income even if one or two units become vacant. Compare this with single family properties that stop producing income altogether when the tenants leave. With multifamily investing, investors can still earn from rental income while looking for new tenants.

Stable Investment Opportunities for Real Estate Investors Compared to Stocks

The fact that investors do not have to worry about vacancies is one of the reasons why multifamily investing is such a great choice if you are looking for stable investment opportunities. It is therefore a great choice for diversification if you usually prefer investing in the stock market.

Multifamily investing and investing in stocks are two different asset classes. They each have their own unique characteristics and levels of stability.

The stock market is an investment tool that allows investors to purchase shares of publicly traded companies. Investors may buy individual stocks or invest in mutual funds. They can also go for exchange-traded funds or ETFs. But while stocks can be profitable, they are also known for being volatile. [4]

On the other hand, housing is a basic human need, which means there is always demand for multifamily properties. This makes it a stable investment vehicle for investors who do not like the volatility of the stock market.

Stock prices can be influenced by a wide range of factors, including macroeconomic trends, company performance, and investor sentiment. Meanwhile, multifamily rental properties that are well-located and well-maintained tend to remain relatively stable over time. This can provide a degree of resilience during economic downturns.

With multifamily investing, investors do not have to worry about sudden changes in market conditions affecting their income. It is therefore easier to plan their budgeting and spending so that they can get regular income regardless of what happens in the economy. [4]

Multifamily properties are tangible assets with intrinsic value. Compared to stocks, bonds, and real estate investment trusts (REITs), multifamily investing has very low volatility.

With multifamily investing, investors also have a higher degree of control over their investments. This allows them to make strategic decisions related to property management, renovations, and tenant selection, which can directly impact the performance of the investment.

Long Term Appreciation

Multifamily properties have the potential to appreciate in value over time, leading to capital gains for investors when they decide to sell.

Appreciation refers to an increase in an asset’s value over time. Appreciation can occur naturally, but forced appreciation can also be achieved through improvements and renovations. Natural appreciation happens when the market cap rate decreases naturally. On the other hand, forced appreciation is when the property’s revenue increases or when the expenses decrease, thereby increasing the net operating income. [5]

Property appreciation is how much more your building is worth from the day you purchased it. So for example, if you bought a property for $1 million and then sold it for $2.5 million ten years later, your appreciation over that period is $1.5 million. [5]

Multifamily real estate can contribute to long-term wealth building and passive income for investors, aligning with the financial goals of many clients of certified financial planners.


Certified financial planners often recommend multifamily real estate investing because it helps their clients diversify their portfolios beyond the traditional stocks and bonds.

Most investors have easy access to stocks, bonds, cryptocurrency, and other traditional investment vehicles. However, multifamily investing gives investors the opportunity to invest in tangible assets. Real estate investments have low correlation with the stock market and other asset classes, which makes them ideal for diversification. [1]

Even if certain assets are currently tanking, real estate assets are not necessarily going to be affected, which means investors can still generate income and build their wealth.

What is an Unregistered Security?

Securities like stocks and bonds need to be registered with the Securities and Exchange Commission (SEC) before being offered to the public for sale. Unregistered securities are securities that do not have an effective SEC registration statement on file. [6]

Only accredited investors are allowed to buy and sell unregistered securities. That said, there are still certain exemptions that apply. A privately-owned corporation, for example, may issue shares of stock to its board members and executives. These new stockholders still have to notify the SEC before selling the stock to anyone else. [6]

Accredited investors, according to the SEC, are investors who have a net worth of at least one million dollars or an annual income over $200,000 (or $300,000 together with a spouse) in each of the prior two years. They also need to have a reasonable expectation of earning the same for the current year.

If you are an accredited investor who is interested in multifamily real estate investing, your financial advisor may recommend multifamily syndication.

Best Investment in the Real Estate Market: What is Multifamily Real Estate Syndication?

Multifamily syndication deals are mostly exclusive to accredited investors. But what exactly is it and how does it work?

Real estate syndication is an investment strategy that is somewhat similar to private equity funds because it involves multiple investors pooling their resources together. In a real estate syndication deal, multiple investors pool their funds in order to purchase a single real estate property. [7]

This type of deal can be arranged for just about any type of real estate property. But multifamily syndication is particularly popular because of all the benefits of owning multifamily real estate. From the strong and consistent cash flow, to the diversification, multifamily syndication gives accredited investors all of the usual advantages without the headaches associated with becoming a landlord.

Normally, when you purchase an apartment building all on your own, you have to spend a significant amount of capital and bear all the risk by yourself. This is a huge barrier to entry for a lot of investors. Even accredited investors may think twice about purchasing a large multifamily property.

Another downside of multifamily investing is that you have to do all the work to make sure the property is profitable. This means you take on all the responsibilities of being a landlord including handling tenants, collecting rent, dealing with emergencies, etc. Most of the time, it is necessary to hire a property manager just so you don’t have to spend all your energy on running the apartment complex.

But multifamily syndication addresses both of those issues. A syndication deal is arranged by a syndicator who serves as the general partner (GP). They will locate the real estate investment property, formulate the business plan, build the legal structure, look for investors who will participate in the deal, and even handle property management. [7]

These participating investors will serve as limited partners (LPs) and will provide most of the capital needed for the syndication deal in exchange for a share of the monthly cash flow, and depending on the deal structure, the equity upon resale. [7]

Lone investors who do not want to pay a huge amount of capital upfront may prefer multifamily syndication because it means they no longer have to purchase the real estate property by themselves. Syndication deals are usually structured as a limited liability company (LLC) or a limited partnership (LP).

A syndication deal allows multiple accredited investors to share the risks and the profits.

Since the syndicator is also in charge of property management, there is no need for investors to get involved in the property at all. After providing a portion of the capital, there is no more input required from the investor, making it a true passive investment. [7]

Why HNWIs Trust BAM Capital for Multifamily Syndication

Some investors who go into multifamily syndication try to build their own team or create their own real estate company. But doing so takes a significant amount of time, energy, and resources. Companies do not just become industry leaders overnight. So instead, the majority of investors, especially HNWIs, opt to work with syndicators that are already well-established and have proven track records to arrange syndication deals for them.

Lean into what you know: whether that is running your business or investing in companies. Instead of starting your own real estate company, outsource the work to BAM Capital and enjoy the benefits of working with an industry leader.

BAM Capital is an Indianapolis-based syndicator that is already vertically integrated. This means they can handle every step of the syndication process and guide investors through each one.

With multifamily syndication, HNWIs can just sit back, relax, and collect their checks. BAM Capital has a strong Midwest focus, prioritizing high quality multifamily properties that are Class A, A-, and B++. This syndicator focuses on properties that have in-place cash flow and proven upside potential. They then use their award-winning strategy to mitigate investor risk and create forced appreciation. [5]

In fact, BAM Capital now has over $700 million AUM and 5,000+ units. BAM Capital will guide you every step of the way: from acquiring and purchasing the multifamily property to renovating and managing it. [5]

No investment is without risk. Make sure to consult your investment advisor or speak to a BAM Capital investment team member before making any financial decisions.

For HNWIs who want to enjoy the passive income and all the other benefits of being in a multifamily syndication, schedule a call with BAM Capital and invest today.

Why Certified Financial Planners Recommend BAM Capital

Accredited investors looking for the best multifamily real estate investing strategy should consider real estate syndication.

While most of the work is done by the syndicator, there is still one key step that you need to take before enjoying this passive investment, and that is choosing the right syndicator to work with. It is important to look for a syndication deal arranged by a trustworthy syndicator.

Work with BAM Capital if you are looking for a syndicator with a consistent track record and an award-winning investment strategy that creates forced appreciation. This Indianapolis-based syndicator has a strong Midwest focus, prioritizing high quality properties that are Class A, A-, and B++. BAM Capital chooses real estate investment properties that have in-place cash flow and proven upside potential. [8]

This strategy mitigates investor risk allowing them to enjoy a passive real estate investment.

BAM Capital is also a vertically-integrated company, meaning they can guide you through the entire syndication process, from negotiating the purchasing of high quality real estate to property management. In fact, BAM Capital now has over $700 million AUM and 5,000+ units. They can guide investors through every step of the process. [8]

No investment is without risk. Make sure to consult your investment advisor or speak to a BAM Capital investment team member before making any financial decisions.

For accredited investors who want to enjoy the passive income and all the other benefits of being in a multifamily syndication, look no further than BAM Capital. Schedule a call with BAM Capital and invest today.