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.

BAM Capital seeks out assets that have a targeted return of 15-20% IRR or 2.0-2.5X Equity Multiple in 3-5 years.

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

n apartments, it’s all about the ability to add value. Why? Because every dollar that we can bring to the bottom line of an asset creates anywhere from a 17 – 20 multiple when it’s time to sell. First, BAM Capital targets markets where people are moving. There’s job creation, demand, good schools nearby for children living at the properties.

Second, BAM Capital looks for assets with the ability to reduce costs through managerial efficiencies.

Third, BAM Capital seeks out properties with the ability to add improvements. Perhaps that means the amenity center or a gym that hasn’t been touched in a couple of decades. It may be a pool that needs new furniture/cabanas. Or, it could be cosmetic upgrades for all units.

Value add is simple. It’s not always easy to execute, but it comes down to great markets, reducing costs, and raising rents.

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.

During COVID-19, the Midwest has been a standout performer in the areas we target: occupancy, rent growth, and demand for workforce housing. COVID-19 has actually allowed for a unique investment advantage. BAM Capital has been able to find more deals and product demand, allowing BAM Capital to maintain a high occupancy and continue to raise rents. BAM Capital has seen demand increase in two key areas: people leaving downtown, urban core areas and moving out of luxury apartments into workforce housing.

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.

The BAM Companies was born in property management, which is a key competitive advantage. Today, The BAM Companies has over 100 employees and is vertically integrated from the people on the ground, property management, and the team at corporate. This culture gives BAM a much higher degree of confidence in the execution of our strategy.

The BAM Companies invests in its people. The BAM Companies’s leaders have the autonomy to make decisions in their departments and help it to execute the business plan. When asked about the culture of The BAM Companies, the first word that readily comes to mind is family. Here we call it the BAM Fam.