What is a Class C Multifamily Property?Table of ContentsFor first-time investors, the numerous real estate terms can be intimidating. The real estate industry uses a lot of lingo that can be daunting, but they can help paint a clearer picture of how various properties are different from one another. For example, by learning about the different property classes, investors can make better decisions on which real estate properties to put money into. One example that investors may encounter while looking for an ideal investment property is the term “Class C multifamily property”. Although it may sound complicated at first, it actually gives you an idea of what the property looks like with just a simple description. What is a Multifamily Property?A multifamily property is a residential building where more than one family lives. Multifamily properties have multiple units that can be occupied by renters. This includes duplexes, triplexes, apartment complexes, and condominiums. The number of units does not matter. As long as multiple families can live in separate units within one property, it is considered a multifamily property. [1] The term “Class C multifamily property” refers to the property class of that specific multifamily property. To understand this, we have to take a closer look at property types and what they mean. What is a Class C Property?Property class is determined by the location, age, condition, and the amenities offered by the property. Based on these factors, a property may fall under one of three categories: Class A, Class B, and Class C—with Class A being considered the best. Class C properties are on the lower end of the spectrum in terms of the aforementioned criteria, while Class B properties are somewhere in the middle. Sometimes sub-categories like Class A- or Class B+ are used to provide a more accurate description of a particular property. While there are no strict rules that determine a property’s classification, the terms Class A, Class B, and Class C are used in the real estate industry to quickly describe a particular property and communicate its value. If a listing says that a property is Class A, it means the property is in a good location and has plenty of amazing amenities, among other great qualities. Class B properties are not necessarily bad, but they are considered “second best” or less than ideal. With a few upgrades and improvements, they can easily become Class A. Finally, Class C properties may range from being in fair to poor condition. They are typically older—mostly over 30 years old. They are therefore considered the riskier investment. That said, their acquisition costs are lower and they have great potential cash-on-cash returns. [2] Class C properties make tricky investments because they tend to have lower cash flow and higher rates of vacancy. They also have fewer amenities, if any, which means they are hard to market. These properties have a difficult time attracting new tenants due to a combination of factors such as poor condition, bad location, etc. An old four-story apartment that has not experienced any major renovations in recent years and has outdated amenities is one example of a Class C property as the property is trending towards obsolete. Investors who want to take on a Class C property will have to make significant capital investments upon purchase. If you want to improve or renovate it, you will have to spend even more money to make it marketable. That said, Class C properties can be marketed to a wider range of people because of their lower rents. [2] Being considered the “least desirable” out of all the property types, Class C properties may not be the top choice for investors and tenants alike. But given their benefits, they should not be underestimated. Some investors who decide to put money into Class C properties often do so with renovation in mind. These real estate properties represent a significant value-add opportunity. Some Class C multifamily properties are actually well-located but not well-maintained, which means they can easily be improved through renovations. Investing in a Class C PropertySince Class C properties are considered risky, investors need to look at some key variables before making an investment or purchasing a property. First, you need to take a look at the acquisition cost. Class C properties typically have the lowest barrier to entry, which makes them accessible to individual investors as well as multifamily syndicators. [2] Class C properties have good cash flow potential, but usually have lower appreciation potential compared to Class B and especially Class A properties. But one of the biggest factors that investors should consider before taking on a Class C real estate investment is risk tolerance. Most risk-averse investors will avoid Class C properties. If you want to avoid risky investments, Class A is the best choice for you. Only experienced investors who know what they are doing should consider Class C properties because they may not give you the desired returns if you don’t renovate or take care of the property. In fact, BAM Capital Multifamily Growth & Income Fund II does not offer Class C properties because of their risky nature. This Fund prioritizes Class A, Class A-, and Class B++ when looking for investment properties because they are safer for our investors. It is important to remember that these classifications do not fully reflect a property’s value because there are a lot of things to be factored into the equation. These property types are meant to act as a guide, but it is not always cut and dry. Properties will fall within these categories, but you can still make your own assessment based on condition, location, age, amenities, and even subjective opinion. Work with BAM CapitalBAM Capital will arrange the syndication deal and also handle property management, so you don’t have to worry about the usual responsibilities associated with real estate investing. You don’t have to take on the role of a landlord. Multifamily syndication is a passive investment approach where you can get money from the cash flow and the equity once the deal is done. Investors can enjoy BAM Capital’s low-risk investment strategy that creates forced appreciation. BAM Capital’s vertical integration model also mitigates investor risk. For investors who want to explore multifamily real estate investing, there’s no need to go through all that hassle. You can work with BAM Capital and invest in high quality real estate opportunities that are sure to make you money. [3] BAM Capital works with accredited investors and negotiates the purchasing and financing of high quality multifamily real estate properties on their behalf. This Indianapolis-based company currently has $593M AUM and 5,000 units. Schedule a call with BAM Capital and invest today.
Sources: [1]: https://www.sharestates.com/glossary/multi-family-property/ [2]: https://www.feldmanequities.com/education/what-is-the-difference-between-class-a-b-and-c-properties/ About BAM Multifamily Growth & Income Fund IIBAM Capital created this fund in order to yield consistent and reliable cash flow, long-term appreciation, and accelerated tax benefits. The fund aligns with BAM Capital’s demonstrated track record of successful multifamily investing by continuing to implement our signature investment thesis, now in fund format. The fund aims for greater overall returns and lower risk through a multi-asset diversification strategy.
The above link will take you to the free Investor Portal to view all current offerings. If you do not have an account already, please create one to view the information.
The contents on this site are for informational and entertainment purposes only and do not constitute financial, investment, or legal advice. BAM Capital cannot guarantee that the information shared on this post or page is appropriate for you and your financial situation. By using this site, you agree to hold BAM Capital and any and all entities related to the writing & publishing including BAM Capital’s parent company harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site. Always consult your investment advisor, CPA, and other professionals before making an investment. BAM Capital is excited to help you grow your investment assets. Please contact us to see how we can help you.
The post What is a Class C Multifamily Property? appeared first on BAM Capital. Via https://capital.thebamcompanies.com/2021/10/class-c-multifamily-property/
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How to Pick Commercial Multifamily Real Estate InvestmentsTable of ContentsMultifamily properties are real estate that are not considered single family homes. These are apartment complexes, duplexes, townhomes, and condominiums that have multiple units that can be occupied by renters. Investors may take interest in multifamily real estate because of its cash flow, scalability, and the opportunity to diversify their portfolio. However, in order to be successful, an investor needs to carefully evaluate the property first. There are several factors that need to be taken into account when evaluating a prospective multifamily real estate investment. If you are interested in exploring multifamily investing and multifamily syndication, you need to know what to look for in a property or deal. With the right deal, you can boost your income while maintaining a passive investment approach. Why Invest in a Multifamily Property?If a residential property contains more than one housing unit, then it is considered a multifamily property. Also known as a multi-dwelling unit (MDU), each unit has its own living space, including a separate kitchen, and a bathroom. For investors who want to diversify their portfolio, this can be a solid option. It can serve as a great wealth-building tool no matter how you choose to invest in it. [1] Compared to single-family properties, multifamily properties tend to be more expensive but they come with an array of benefits for investors. For example, apartment complexes and condominiums tend to bring a larger and more consistent cash flow because they have multiple tenants and fewer vacancies at any given time. Thanks to fewer vacancies, there is less risk involved in this type of investment. There is a larger pool of tenants to provide consistent cash flow, whereas a single-family unit that becomes vacant will produce zero cash flow until someone moves in. Since multifamily properties are comprised of more units, there are multiple streams of income. This means as an investment, it is valued higher than single-family properties. [1] It is not always necessary to purchase the multifamily property by yourself. A multifamily syndication is a type of real estate investment wherein multiple investors pool their money in order to purchase an asset. Any type of real estate property can be used for a syndication deal but multifamily syndication is the most popular because it is a low-risk investment. In exchange for equity in the multifamily property, passive investors provide most of the capital required. A syndicator looks for a multifamily property, sets up the deal, and then looks for investors to partner in the syndication. [2] How to Choose a Multifamily Property to Invest InIf you are not participating in a syndication deal, multifamily real estate investing can be expensive since they are bigger than single-family units. Multifamily properties require more capital, and are often held to strict regulatory standards by local jurisdictions. This only means you need to be very smart about where you are putting your money in. As an investor, you need to put in your due diligence. You want to see the documents, maintenance records, bank statements, utility bills, etc. This will help you ensure that the investment will actually work for you. Consider factors such as amenities, local crime rate, and proximity to schools, hospitals, shopping centers, parks, etc. [3] Due diligence involves locating a property below market value and assessing its financial sensibility. After locating a potential property for your investment, you should compare purchase prices, rental estimates, short-term costs, and long-term costs. The numbers will have to be your primary concern because these figures will help you understand the true value of the investment property. [1] One of the most important factors when selecting an investment property is the location. When it comes to real estate investing, it’s all about location, location, location. You have to think about whether the property will appeal to renters because that will be your main source of income. Investors typically look for properties in well-maintained neighborhoods. The number of units will also affect your potential income. With fewer units, there will be a smaller cash flow, but the property will likely be more affordable compared to a large condominium. Beginner investors should consider starting small. More experienced investors, especially accredited investors, can go for bigger investments without worry. Another thing to keep in mind when investing in a multifamily property is that you will have to manage it. It’s not easy being a landlord, as you will have to deal with emergencies and taking care of the property itself. Some real estate investors hire a third party property manager to solve this problem. Some multifamily syndicators, such as The BAM Companies, is a vertically integrated company with an in-house management team. If you do decide to take on the role of landlord, make sure you are choosing a property that you want to take care of. You will have to be more involved with the property you are investing in. This is another reason why some investors go for a multifamily syndication deal. The syndicator will be in charge of managing the property. Sometimes they will hire a property manager to take on the job. But either way, you won’t have to spend time dealing with tenants. This is truly a passive real estate investment. Work with BAM CapitalFor investors who want to explore multifamily real estate investing, there’s no need to go through all that hassle. You can work with BAM Capital and invest in high quality real estate opportunities that are sure to make you money. BAM Capital works with accredited investors and negotiates the purchasing and financing of high quality multifamily real estate properties on their behalf. BAM Capital has a Midwest focus, and only goes for B++, A-, and A multifamily assets. This strategy provides low-risk investment opportunities with lucrative assets. Investors love the passive investment approach provided by BAM Capital. [4] This Indianapolis-based company currently has $593M AUM and 5,000 units. Accredited investors reap the benefits of their cash flow-positive assets. Schedule a call with BAM Capital and invest today.
Sources: [1]: https://www.fortunebuilders.com/multifamily-investment-property/ [2]: https://www.millionacres.com/real-estate-basics/real-estate-terms/investing-multifamily-syndication/ About BAM Multifamily Growth & Income Fund IIBAM Capital created this fund in order to yield consistent and reliable cash flow, long-term appreciation, and accelerated tax benefits. The fund aligns with BAM Capital’s demonstrated track record of successful multifamily investing by continuing to implement our signature investment thesis, now in fund format. The fund aims for greater overall returns and lower risk through a multi-asset diversification strategy.
The above link will take you to the free Investor Portal to view all current offerings. If you do not have an account already, please create one to view the information.
The contents on this site are for informational and entertainment purposes only and do not constitute financial, investment, or legal advice. BAM Capital cannot guarantee that the information shared on this post or page is appropriate for you and your financial situation. By using this site, you agree to hold BAM Capital and any and all entities related to the writing & publishing including BAM Capital’s parent company harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site. Always consult your investment advisor, CPA, and other professionals before making an investment. BAM Capital is excited to help you grow your investment assets. Please contact us to see how we can help you.
The post How to Pick Commercial Multifamily Real Estate Investments appeared first on BAM Capital. Via https://capital.thebamcompanies.com/2021/10/commercial-multifamily-real-estate-investments/ The post What is a Class B Multifamily Property? appeared first on BAM Capital. Via https://capital.thebamcompanies.com/2021/10/what-is-a-class-b-multifamily-property/ The BAM Companies Ranks on Inc. 5000 List for 2021Table of Contents
Navigation: The Inc. 5000 List, About The BAM Companies
The BAM Companies is proud to announce that it has once again made it on the Inc. 5000 list. The real estate investment company ranked 3,008 on the 2021 edition of Inc. 5000, an annual ranking of America’s fastest-growing private companies. This marks the fourth consecutive year that The BAM Companies has managed to secure a spot on the prestigious list by Inc. Magazine. The BAM Companies has appeared on Inc. 5000 each year since 2018. The BAM Companies has achieved the following ranks in previous Inc. 5000 lists: No. 1,319 (2018), No. 1,118 (2019), No. 1,843 (2020), and 3,008 (2021). [1] As part of 2021’s Inc. 5000, The BAM Companies has its own profile on Inc. Magazine’s website which can be viewed here: https://www.inc.com/profile/barratt-asset-management According to the profile, The BAM Companies saw a 127% growth within a span of three years. It is described on the website as “an asset management firm specializing in the acquisition and management of multifamily apartment communities”. The Inc. 5000 ListInc. first revealed the Inc. 500 list in 1982. Even then, the goal of the list has always been the same: to recognize privately held companies that are at the pinnacle when it comes to growth. It has since become a representation of success for entrepreneurs. It is a place where the most promising companies can first make their mark. [2] It was in 2007 that the Inc. 500 list was expanded to become the Inc. 5000. This was done so that readers can see the bigger picture and gain an even better understanding of the current entrepreneurial landscape. Inc. 5000 is now considered a distinguished editorial award that captures a broad spectrum of success. In fact, well-known brands such as 7 Eleven, Toys ‘R’ Us, Zipcar, and Pandora have been honored by the Inc. 5000. Inc. determines the rankings based on overall revenue growth over a three-year period. All 5000 companies are featured individually on the Inc. website, while the top 500 are featured in the September issue of Inc. Magazine. The Inc. 5000 list celebrates innovation in the entrepreneurial industry. It also showcases some of the nation’s most promising entrepreneurs. The list ranks the fastest-growing companies by industry, revenue, metro area, and number of employees. It also highlights companies that are run by women and minorities. [2] About The BAM CompaniesThe BAM Companies is an array of real estate services that specializes in the acquisition and management of multifamily apartment communities. Formerly known as Barratt Asset Management, The BAM Companies consists of BAM Capital, BAM Management, and BAM Construction. It is headquartered in Indianapolis, Indiana. The BAM Companies uses market expertise as well as the knowledge and strengths of its employees to provide its community residents and investors maximum benefit. The BAM Companies currently has over $593 million in total assets under management. [3] BAM Management handles the acquisition and management of multifamily apartment communities. BAM Management follows a strict principle that they only manage properties they are proud of. Thanks to convenient locations and topnotch amenities, residents can enjoy a consistently pleasant experience. [4] BAM Capital finds high quality real estate opportunities and negotiates the purchasing and financing on behalf of its investors. With a Midwest focus, BAM Capital locates the best B+, B++, and A multifamily assets that have upside potential so that investors can enjoy a low-risk opportunity with lucrative assets. BAM Capital leverages local expertise and long-standing relationships with sellers, brokers, and builders to allow for expert knowledge on assets being purchased. [5] Finally, BAM Construction is the newest part of The BAM Companies. It was introduced in 2015 in order to provide the most value to residents. It handles things like upgrades, new amenities, and updated features. [6] For residents and accredited investors alike, The BAM Companies offers reliable service and market expertise. The latest Inc. 5000 list further proves that The BAM Companies is committed to making sure investors and residents get the best value for their money.
Sources: [1]: https://www.inc.com/profile/barratt-asset-management [2]: https://incmagazine.zendesk.com/hc/en-us/articles/360000101526-What-is-the-Inc-5000- [3]: https://thebamcompanies.com/ [4]: https://pm.thebamcompanies.com/ About BAM Multifamily Growth & Income Fund IIBAM Capital created this fund in order to yield consistent and reliable cash flow, long-term appreciation, and accelerated tax benefits. The fund aligns with BAM Capital’s demonstrated track record of successful multifamily investing by continuing to implement our signature investment thesis, now in fund format. The fund aims for greater overall returns and lower risk through a multi-asset diversification strategy.
The above link will take you to the free Investor Portal to view all current offerings. If you do not have an account already, please create one to view the information.
The contents on this site are for informational and entertainment purposes only and do not constitute financial, investment, or legal advice. BAM Capital cannot guarantee that the information shared on this post or page is appropriate for you and your financial situation. By using this site, you agree to hold BAM Capital and any and all entities related to the writing & publishing including BAM Capital’s parent company harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site. Always consult your investment advisor, CPA, and other professionals before making an investment. BAM Capital is excited to help you grow your investment assets. Please contact us to see how we can help you.
The post The BAM Companies Ranks on Inc. 5000 List for 2021 appeared first on BAM Capital. Via https://capital.thebamcompanies.com/2021/10/bam-companies-inc-5000-list-for-2021/ Successful Multifamily Real Estate InvestingTable of ContentsMultifamily real estate investing is both efficient and profitable, especially if you are putting money into a multifamily syndication deal. That said, there are still a number of steps that you can take to ensure that your multifamily real estate investment will be a successful one. Chief among them is investing your real estate dollars in BAM Capital’s multifamily syndication offerings. BAM Capital handles the process of finding high quality real estate opportunities and negotiates the purchasing and financing on your behalf. With BAM Capital’s remarkable track record and ability to create forced appreciation, investors can be sure that their investment will be successful. BAM Capital uses a vertical integration model to mitigate investor risk. [1] The best way to succeed in multifamily real estate investing is to allow BAM Capital to look for opportunities for you. Proper Multifamily Real Estate InvestmentAs an investor, you want to make sure that you are not investing in real estate unless your finances and personal life allow for such an investment. This is not usually an issue because BAM Capital only works with accredited investors. But it is worth keeping in mind that multifamily real estate investment is not immediately liquid. It is advisable that you have proper cash reserves when investing in real estate syndication. Assess the market you are attempting to purchase multifamily real estate in. It pays to know as much about the property as possible. If there is a lower supply than demand, then prices should be rising. It should therefore provide you with an opportunity to start looking for multifamily real estate investment opportunities in that area. [2] If you are looking for good real estate investments, BAM Capital has a low-risk model that a lot of investors appreciate, especially those who want a passive investment. One of the biggest benefits of multifamily syndication is that it is a lot more passive than purchasing a property yourself. You don’t have to manage the property or deal with tenants. Through multifamily syndication, you can enjoy the benefits of real estate investing without the responsibilities of being a landlord. [1] BAM Capital is always assessing properties based on a number of metrics. BAM Capital prioritizes B++, A-, and A multifamily assets with in-place cash flow and proven upside potential. This mitigates risk and allows the fund to target consistent monthly cash flow. Location, Location, Location (and Amenities)When it comes to real estate, it’s all about location, location, location. BAM Capital focuses on properties that are considered among the best places to live in the United States, ensuring that there will always be renters keeping the units occupied and providing consistent cash flow. Another consideration is that some places have better resources than others. Multifamily properties with access to public transportation systems, schools, shopping centers, and entertainment venues such as amusement parks, stadiums, and concert halls tend to do well because people prefer to live in such areas. Renters who live in these areas have higher incomes and thus can afford to pay more rent. This is one reason BAM Capital has made significant investments into college towns for multifamily syndication. We know that colleges come with a labor force that needs housing, including college and university staff, IT, restaurant staff, etc. These jobs are typically very stable, which reduces vacancies and the inability to pay rent. Investors should also look at crime rates and other data to find out how safe the neighborhood is. Renters tend to consider these factors before moving into a new area. Properties in unsafe areas may struggle to get new renters, and thus will have frequent vacancies. In buying real estate, location really does make a huge difference. [3] Again, working with BAM Capital is more convenient because we take these factors into consideration when choosing properties to invest in. We do all of the research and gather all the data necessary so we can present the best properties for our investors. BAM Capital’s Multifamily Growth and Income Fund II is a private real estate fund uniquely designed to yield consistent, reliable cash flow, long-term appreciation, and accelerated tax-shelter benefits. The fund aligns with BAM Capital’s demonstrated track record of successful multifamily investing. BAM Capital continues to implement its signature investment thesis and, in fund format, will allow for greater overall returns and lower risk through a multi-asset diversification strategy. [1] Want to learn more about how to grow your real estate holdings and leave the management hassles to the professionals? Contact BAM Capital today to see how we can help you reach your financial goals.
Sources: About BAM Multifamily Growth & Income Fund IIBAM Capital created this fund in order to yield consistent and reliable cash flow, long-term appreciation, and accelerated tax benefits. The fund aligns with BAM Capital’s demonstrated track record of successful multifamily investing by continuing to implement our signature investment thesis, now in fund format. The fund aims for greater overall returns and lower risk through a multi-asset diversification strategy.
The above link will take you to the free Investor Portal to view all current offerings. If you do not have an account already, please create one to view the information.
The contents on this site are for informational and entertainment purposes only and do not constitute financial, investment, or legal advice. BAM Capital cannot guarantee that the information shared on this post or page is appropriate for you and your financial situation. By using this site, you agree to hold BAM Capital and any and all entities related to the writing & publishing including BAM Capital’s parent company harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site. Always consult your investment advisor, CPA, and other professionals before making an investment. BAM Capital is excited to help you grow your investment assets. Please contact us to see how we can help you.
The post Successful Multifamily Real Estate Investing appeared first on BAM Capital. Via https://capital.thebamcompanies.com/2021/10/successful-multifamily-real-estate-investing/ Multifamily Syndication BasicsTable of ContentsMultifamily syndication is an increasingly popular way for real estate investors to diversify their portfolios. A syndication deal is a type of real estate investment wherein multiple investors pool their money in order to purchase an asset. A multifamily syndication therefore focuses on multifamily properties rather than single-family units. Multifamily properties have many advantages over single-family homes. For example, multifamily units are much more efficient properties due to the sharing of common elements like laundry rooms, parking spaces, storage units, pools, and so forth. They are cheaper to maintain due to the shared expense model. They also do not depreciate as quickly as single-family homes because they generally operate around the clock instead of being only occupied during daytime hours or weekends. Multifamily properties offer more square footage per dollar, which makes them the better investment overall. Real estate investors can buy more real estate with the same amount of money. The inherent qualities of multifamily properties benefit those who are investing into multifamily syndication. Since multifamily properties are usually located closer to major employment centers and other amenities compared to single-family homes, it reduces operating costs and enhances property values. It also means people are more likely to rent a unit within a multifamily property, which ultimately benefits investors. [1] Multifamily properties can be an excellent investment vehicle for working professionals looking for affordable housing in urban areas. Multifamily syndication is also a good entry point for those who simply want to diversify their assets without the hassle of maintaining real estate on their own. College Towns Offer Fantastic ROI for Multifamily Syndication DealsBAM Capital loves to invest in multifamily properties that are in or close to major universities that offer diversified employment. College towns offer medical, education, and other employment opportunities. While not focusing on student housing, college towns offer many opportunities to house those that are involved in the running of the college through various levels of employment. [2] BAM Capital specializes in the acquisition and management of income-producing multifamily apartment communities. BAM Capital also focuses on B++, A-, and A multifamily assets to provide low-risk opportunities with lucrative assets. Accredited investors reap the benefits of their cash flow-positive assets. [3] Real Estate Investing via CrowdfundingMultifamily syndication allows investors to tap into this lucrative market by pooling together their resources with other people who are interested in investing in multifamily units. Through syndication, investors are able to make money in the multifamily industry even if they do not want to tie up all of their capital. Even accredited investors who lack the expertise needed to run a complex themselves can earn from investing in multifamily syndication. They simply need to join forces with those who do possess those qualities. In a syndication deal, a third party is sometimes employed to take care of the property. [4] It all comes together to create a business model that is not only efficient but also profitable for everyone involved. It even allows investors to control more units than they would be able to otherwise, thus increasing their profits. However, some investors shy away from multifamily syndication because the expenses associated with it are generally higher than that of single-family properties. Multifamily syndication is a good fit for accredited investors that have more experience in real estate investment. Multifamily Syndication Pros & ConsMultifamily syndication can be highly profitable, but it still has a few cons. For example, there are risks that may come from market changes that reduce property value, or from poor property management. Some syndicators also charge excessively high fees—which is why you need to work with a trustworthy syndicator that has a remarkable track record: you need to work with BAM Capital. This type of syndication comes with plenty of benefits that should not be understated. It lets investors put their money on a profitable real estate property without having to become a landlord. There is absolutely no hassle involved: no need to deal with tenants or emergency situations involving the property. As an investor, you don’t need to do any of the maintenance yourself. [4] Multifamily properties are small, tightly managed communities where all work and services are handled by the syndicator and/or the property management company. There is no single “best” multifamily syndication strategy or formula for finding the best syndication deal. Multifamily syndication depends on many factors including location, occupancy rates, and local demand. It is also important to consider who you are going into business with before you sign on the dotted line and put up your money. You want somebody who can be trusted and somebody whose business practices you deem ethical. BAM Capital is an Indianapolis-based company that has been focusing on buying the right assets and staying disciplined in its investment thesis. BAM Capital works with accredited investors looking for high value syndication opportunities that will generate more income. [3] Work with BAM Capital, a trusted real estate syndicator with over $593 million in assets under management. Schedule a call with BAM Capital and invest today.
Sources: [1]: https://stratafolio.com/7-benefits-investing-multifamily-property/ [2]: https://www.latimes.com/archives/la-xpm-2010-oct-03-la-fi-student-housing-20101003-story.html [3]: https://capital.thebamcompanies.com/ [4]: https://www.millionacres.com/real-estate-basics/real-estate-terms/investing-multifamily-syndication/ About BAM Multifamily Growth & Income Fund IIBAM Capital created this fund in order to yield consistent and reliable cash flow, long-term appreciation, and accelerated tax benefits. The fund aligns with BAM Capital’s demonstrated track record of successful multifamily investing by continuing to implement our signature investment thesis, now in fund format. The fund aims for greater overall returns and lower risk through a multi-asset diversification strategy.
The above link will take you to the free Investor Portal to view all current offerings. If you do not have an account already, please create one to view the information.
The contents on this site are for informational and entertainment purposes only and do not constitute financial, investment, or legal advice. BAM Capital cannot guarantee that the information shared on this post or page is appropriate for you and your financial situation. By using this site, you agree to hold BAM Capital and any and all entities related to the writing & publishing including BAM Capital’s parent company harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site. Always consult your investment advisor, CPA, and other professionals before making an investment. BAM Capital is excited to help you grow your investment assets. Please contact us to see how we can help you.
The post Multifamily Syndication Basics appeared first on BAM Capital. Via https://capital.thebamcompanies.com/2021/10/multifamily-syndication-basics/ Todays Interest Rate Spread_Using this chart to decide When Where and How to buy Real Estate10/6/2021
Today's Interest Spread_Using this chart to decide When, Where, and How to buy Real Estate
Thank you for watching Ivan Barratt’s interview with Curtis Edwards, VP of Investor Relations. If you are interested in working with Ivan and the BAM Capital team on Multifamily syndication, please see the options for booking a call to learn more – or if you are ready to invest click the invest now link at the bottom of this page. BAM Capital works with accredited investors to invest in B++, A-, and A multifamily assets with in-place cash flow and proven upside potential. This mitigates risk and allows the fund to target consistent monthly cash flow. Ivan Barratt is the CEO of BAM Capital and is pleased to bring value to potential investors who are looking for high yield equity investments to increase your portfolio’s value. Ivan Barratt is a 20 year veteran of the real estate space and currently serves as founder and CEO of The BAM Companies. Ivan is a multifamily owner, fund manager, and syndicator who specializes in large apartment communities in the Midwest. Since 2015, he has raised nearly $100M in equity and acquired well over 4,000 units. He has also grown the BAM Companies to a three-time Inc 5000 Best in Series private equity and management firm. Today, Ivan focuses his time on equity finance, acquisitions, and company strategy. Currently, his firm manages $593M in assets. Ivan is an active member of the Young Presidents Organization, Entrepreneurs Organization, and the National Multi-Housing Council. Ivan serves on the Executive Board of the Indiana Apartment Association and is a member of The Penrod Society, a not-for-profit arts organization. He enjoys public speaking and has been on countless podcasts discussing real estate, entrepreneurship, and personal growth. Ivan lives in Carmel, IN with his wife and three children. Ivan: Happy Thursday, March 20. I’ve been buried here, putting out some content to my investors, prospective investors, and my audience. hope y’all are doing well. Socially distancing and staying safe. I wanted to get some content out today not on what we’re doing to protect our portfolio and how we’re managing through this, this unprecedented disorder, we put out several pieces on that as well as some information to our investors on how we’re positioning ourselves to ride through the economic storm here for the next 6090 days or more, if that occurs, in really looking at the long term, trend and why. Right now we want to get our hands on as much of our niche real estate as we can, which is workforce apartments here in the Midwest, where we can bring in our team and fresh capital to add value, make improvements, managed more efficiently, reduce costs, all to get that two and a half x return target of five to seven years. So this is one of my favorite charts. been tracking this chart watching it for 20 years ever since I discovered it. And Marcus and Millichap thank you guys put out a very recent graph of what this chart is doing right now. So basically, what we’re looking at, as you can see, is it’s the spread between average income-producing asset cap rates. Right now, you know, averages are high across all asset classes, but just keep that in mind for a second, it’s an average that can be 10 year Treasury, which is also called the risk-free rate. So it’s very similar to the interest rate you can expect by keeping your money in the bank and taking no risk versus investing in risky assets in real estate. And as you know, the cap rate is simply the unleveraged yield. So if you went out and paid cash for a property, what would be your rate of return without the use of debt without this good debt and leverage? That’s the simplest way to explain the cap rate. And so what you can see here over time is that these sort of move together. But then there are these periods where they were they widen. Before the Great Recession, the spread got pretty, pretty tight there, people were taking on riskier income-producing assets, real estate of all kinds, for very little return above the risk-free rate. And then I want to show you where we’re at today, interest rates have crashed, and the government is forcing interest rates down. They’re injecting a lot of capital into the market to keep it liquid. And so rates have gone way down, and cap rates have sort of stayed here, level. So what does that mean? Well, it means if you can find good assets that meet your return objectives, you’re going to get a higher return right now than you normally would. And from a trend perspective, Japan is a great example to look at they’ve had this low-interest-rate environment for a long time, myself and many others included, consider the US to be going through sort of a Japan ification time right now. What that means is, is that these rates thanks to trillions of dollars in the system and stimulus have to stay down. Simply put, the government can’t afford to let the rates go up against everything, including their own debt payments, get more expensive, so they’ll do what Japan’s done for decades, which is artificially keep rates down. This will punish you for saving your money, and it will reward you for investing it in riskier assets. At bam, we want to take as little risk as possible and get as much spread as we can. So if you follow this trend out, and you believe that interest rates are going to stay low, one other thing has to occur over time, these cap rates are going to go lower, as well. And remember, the cap rate goes down, the price of the real estate goes up. So right now we’re working very hard to get some deals in our pipeline. So that we can deploy equity, knowing that past the short term disruption to the market, our real estate is going to do one thing, it’s going to get more expensive as even more yield, excuse me, even more capital is going to chase this sort of yield, because capital wants yield. And there’s even more capital floating around sloshing around in the world today. So if you borrow some short-term problems, even midterms, it does take six months. If you look outside of that, and you look with your long term hat on as an investor, black and white, removal of fear, you can make a pretty, pretty strong argument about what’s going to happen to real estate and why it’s a really good time to put more money into income. Using assets so that you can achieve a spread from the risk-free rate to the cap rate, but good debt on it to get that spread higher. And then as we always do we look for value add deals, where we can reduce expenses, raise rents by making improvements. Use the residents to pay down our debt, so on and so forth to achieve those 18% return projections, as well as our target investor multiple with capital, two and a half x in five to seven years. If I got this more confusing for you, please give me a call. Let me know what you need more information on. Let me know by email text call or comment below. It’s a lot of guys to comment below. What I can define further for you and expand on is why this graph chart is so important and why it’s one of the premier charts in my laboratory as far as what I look at, in deciding when and where, and how to buy real estate. Thanks for watching. See you next time. About BAM Multifamily Growth & Income Fund IIBAM Capital created this fund in order to yield consistent and reliable cash flow, long-term appreciation, and accelerated tax benefits. The fund aligns with BAM Capital’s demonstrated track record of successful multifamily investing by continuing to implement our signature investment thesis, now in fund format. The fund aims for greater overall returns and lower risk through a multi-asset diversification strategy.
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The post Today’s Interest Rate Spread_Using this chart to decide When, Where, and How to buy Real Estate appeared first on BAM Capital. Via https://capital.thebamcompanies.com/2021/10/interest-rate-spread/ The Essentials Of Structuring Deals with Ivan BarrattThank you for watching Ivan Barratt’s interview with Curtis Edwards, VP of Investor Relations. If you are interested in working with Ivan and the BAM Capital team on Multifamily syndication, please see the options for booking a call to learn more – or if you are ready to invest click the invest now link at the bottom of this page. BAM Capital works with accredited investors to invest in B++, A-, and A multifamily assets with in-place cash flow and proven upside potential. This mitigates risk and allows the fund to target consistent monthly cash flow. Ivan Barratt is the CEO of BAM Capital and is pleased to bring value to potential investors who are looking for high yield equity investments to increase your portfolio’s value. Ivan Barratt is a 20 year veteran of the real estate space and currently serves as founder and CEO of The BAM Companies. Ivan is a multifamily owner, fund manager, and syndicator who specializes in large apartment communities in the Midwest. Since 2015, he has raised nearly $100M in equity and acquired well over 4,000 units. He has also grown the BAM Companies to a three-time Inc 5000 Best in Series private equity and management firm. Today, Ivan focuses his time on equity finance, acquisitions, and company strategy. Currently, his firm manages $593M in assets. Ivan is an active member of the Young Presidents Organization, Entrepreneurs Organization, and the National Multi-Housing Council. Ivan serves on the Executive Board of the Indiana Apartment Association and is a member of The Penrod Society, a not-for-profit arts organization. He enjoys public speaking and has been on countless podcasts discussing real estate, entrepreneurship, and personal growth. Ivan lives in Carmel, IN with his wife and three children. The Essentials Of Structuring Deals with Ivan Barratt Announcer: Welcome to The Real Estate syndication show. Whether you are a seasoned investor or building a new real estate business, this is the show for you. Whitney Sewell talks to top experts in the business. Our goal is to help you master real estate syndication. And now your host, Whitney Sewell, Whitney: This is your daily real estate syndication Show. I’m your host, Whitney Sewell. Today our guest is Ivan Burt. Thanks for being on the show again, Ivan. Ivan: Man, it is so fun to be back here. Whitney, thank you again for having me back. Really enjoyed last time and looking forward to more conversations with you, man. Whitney: Yeah, I’m always honored to have you on the show just somebody your level of experience and, and expertise. We’re honored to have you here and learn from beer. So you know, our listeners probably heard you on show Debbie? Yes, 166. That’s been a little while back. And I would encourage you all to go back and listen to that and learn a little more about him. But he’s a multifamily unit owner and syndicator, who specializes in FHA and agency finance projects he’s raised, has raised since 2015, nearly $60 million in equity, acquired over 2500 units, and grown Barrett asset management to be best in class vertically integrated asset and property management firm, his company’s manage well over $200 million in assets comprising nearly 3500 units. And thanks again, you know, give the listener a little bit more about just what your focus is right now. And then we’ll jump right down to the big topic of structuring deals. Ivan: Sure, sure. Well, again, it’s my pleasure to be here and biography updates, by the end of next week, we’ll be at about 65 million in equity raised that that next five is the first five in our new fund. So now with a track record and some trust, we’re moving forward to a multi-asset structure to help us raise more capital go after bigger game, so to speak, and also provide another level of diversification to our investors, I get to spend most of my time on the equity side of the capital stack these days, which means, you know, a fancy term for raising capital. And then I get to spend a lot of the time above that really focused on the big, big strategy, the high-level vision of our company, which is a fully integrated private equity and management firm, all the way down to the leasing agent and the maintenance tech on site. And I have a lot of fun getting to really keep my head in the clouds, so to speak, and focus on you know, what we want long term culture to look like, long term, what kind of company do we want to be part of, and, and how we, how we find that, that mountaintop and how we get there, it’s a lot of fun these days that I get to have because I’ve got a great team that basically gets to do most of the decision making these days and it’s just and tell you what we need is It’s incredible to watch the leaders in our company, matriculate evolve and become just really fantastic examples in their different departments. How they make decisions, how they, how they manage others, and where they’ve taken this company, we call them to love it, I am Whitney: thinking the previous episode 166 we talked a little about your team and how you got to where you are and if not, we’ve got to do that so that’s awesome congratulations to you and your success and I know that’s you know, that’s a part of it just from your leadership ability and hiring the right people and making it happen and you’ve accomplished a lot but you know from your expertise you know, we’d love to dive into deal structure a little bit and maybe some things that are important about you know, how we structure deals how you’ve structured deals some ways Maybe you find that wouldn’t work and why you know for your company, but maybe they would others but maybe get us started with just some things about the deal structure that we need to to know when looking at deals. Ivan: Yeah, so we can we can go the tag from how I structure deals with, with my investors with other people inside, inside the GP inside the general partnership, the folks that are in charge of the asset, you know, there’s a team inside that as well. We can take that route, if that works for you, whatever, whatever I can do to deliver some value to the audience. Whitney: Yeah, that sounds good. Why don’t you just break down a deal? Yeah, that sounds good. Ivan: Yeah, so a lot of syndicators out there. I think these days are doing it the same way. But you know, we look at it like we’re a private equity company, and that’s where I really first looked at this model. was one of the private equity companies doing out there, you know, whether it’s a business or real estate. And so we typically are going to look for a deal that will deliver a certain return threshold with a high degree of confidence to the investor right? For us, we pay a preferred return. And you know, that started in at nine went to eight. And is as the markets changed. And we’ve gone after newer and nicer assets that we do have to pay more for but that have lower risk, the preferred returns gone down. And again, that preferred return is what the investor makes before I start making any profit on the deal. So right now we pay a preferred return of 7%. And we’re actually only looking for deals where we can be current on the press. Meaning that 60 days after we deploy capital, after we close on that asset, we want to be able to pay 7% annualized divided by 12. On a monthly basis, we want to, we want to be able to send our investors checks. Whitney: 60 days after close, you want to be ready to be able to perform. Ivan: That’s right. That’s right. And that’s also new for us. You know, we’ve done quarterly, we’ve done semi-annually for our HUD deals, but we’re seeing a lot of demand in the marketplace for monthly returns, and we weren’t able to deliver that. And in order to do that, we’ve got to find those deals that are what we call a coupon clipper, they’ve already got cash flow, we’re getting to solve a few problems to increase income. add value, but there are far fewer problems to solve than, say, like a traditional value add deal. And so we’re looking for that 7% Plus, whatever split is on that deal, 70 75% to the passive investor, looking for those two numbers, to equal an IRR on a five to seven-year hold of anywhere from 14 or better. Typically 1718 percent is a good spot for us. If it’s a newer, nicer asset that we would mind hold longer, you know, we’ll look at a lower IRR, maybe a 15 or 16% annualized return over the whole period. And then we also look for that to match up with a return of capital multiple of invested capital, which a lot of investors want to see, right? So very simply put, I’m talking to you as an investor, Whitney, I’m looking to do two and a half to three and a half times what you invest in the deal netback to you, on a five, seven, or maybe a 10-year hold depending on that specific deal or how that fund is structured. Whitney: You said five, seven, or 10 years or so you want to double their money within possibly five years, or I guess give us a different setup. I got it. Ivan: Yeah, you’re exactly right. If I got to hold a 10, I want to be able to triple it is what most of my investors want to know is when are they going to get their money back, right. And so I tell them all the same thing. Listen, I’m going to try to target a five to seven-year exit, I’m gonna plan for a seven to 10-year hold in case we have to hold it longer. And so we want to own we want to target a deal that we wouldn’t mind owning for a longer period of time, right? We don’t want to have to sell if it’s a buyer’s market. If it’s a bad time to sell real estate, we want to buy more, not selling perfectly good cash-flowing income property. Whitney: Makes sense. Yeah. So So I guess, back up a little bit, as far as you know, when you’re first getting a deal, and you’re, you know, what’s telling you which way to structure a deal, you know, and maybe we can go into, like how you’re going to split a deal. You know, I mean, so you’re gonna have your investment returns, you’re gonna have the pref that you’re, you know, you know, you’re gonna try to return to investors, you know, you want a cash-flowing asset. So then, you know, how do I determine, you know, if I want a 7030 split at 20? I mean, I hear people doing 50 now, or are not even doing preferred returns and just doing a split, you know, what are some ways that you’re thinking through that when your met your team’s underwriting deals? And looking at that and deciding that? Yeah, for Ivan: us, it’s more, it’s more first finding out what our investors really desire at this stage in the market. And then finding deals to meet that desire, right. So we’re going to first look at what we’re hoping to deliver, say in our new fund, we’re looking to accomplish a monthly income stream capital appreciation on the back end, right? Because you’ve raised the value. And so that’s the types of deals we’re looking for right now. But you’re exactly right. There are so many different ways to skin that cat. I assess some developer friends. They take a lot more risk than I do. And sometimes you know, and they get a much higher payoff as well in the deals typically don’t pay out anything for the first three years perhaps. And so on those projects, what they’re usually structuring is like you, you mentioned earlier, no preferred return, and just a simple split. And depending on that deal, they’re doing a 5050 6040 8020, or I think I skipped 7030 there, but any of those manners are those combinations. And then some of the more sophisticated outfits, and we debate this all the time are providing or allowing for hurdles. So that’s a common term you hear in the business is a hurdle, which means, you know, after I’ve delivered you, say, a 12%, the split gets a little bit better to me, and it might change again, at 15, it might change again at 18. To where if we really hit it out of the park, I get a bigger share of the profit above that than a straight split. Which is pretty handy. When you’ve got more sophisticated investors, we pretty much like to keep it simple. And make it as clear and easy to read as possible for our investors. I think you asked me something else there. I’m at a loss. That’s our track on Yeah, just Whitney: thinking about your all process. And you know, when you’re underwriting a deal, when you see a deal, how you’re determining that you know, if it’s Yeah, but you answered, you know, it really depends on what your investors are looking for. And but you had talked about, you talked about how the preferred return is come down. And maybe could you elaborate on, you know, if somebody’s just listening, and they’re trying to figure out now, wait a minute, you know, why is it coming down? But you’re not the one I’ve heard across the board, you know, but can you just elaborate on why that’s coming down? And what do you see for the future, as far as these returns? Ivan: Yeah, part of this is definitely market demand, there’s a lot of equity out there looking for yield, looking for a return on capital. And so demand overall is driving that down. But it’s also just simple economics. Interest rates have gone down as well. And so the spread between, you know, what you would call the risk free rate of the 10 year Treasury, which I think I looked at it this morning, it was 2.08, or 208, is I would say, in offering a prep mean, that of seven, you’re talking about 500 basis points spread between the risk free rates, and the preferred return not even taking into account the potential upside there on Capitol events getting into the teens. So to be able to come out of the gate, a seven versus a two is a pretty big risk premium, for the right to use your capital, if I’m marketing to you as a potential investor. And really, you know, our thesis right now is we’re solely focused on the newer 90s or younger assets that are already reasonably well run, that may benefit from a new management team and perhaps some new capital carries a lot less risk. Most of the investors I run across are whether they know it or not value investors, they’re really not speculators, and they hate to lose money. So rule number one for us is don’t lose the money. Rule number two is to remember rule number one. And rule number three is how do we get a good return on that? And that resonates with a lot of investors out there today? Whitney: Are your deals very similar and how they’re structured? Or are there some times where you might do a hurdle waterfall, you know, and sometimes you want Ivan: I know they’re, they’re pretty much similar with how we’re moving forward. You know, part of our structure now is a multi-asset VPN, it’s got some functions of a fund. It’s still got a defined time period with some extensions on the back end if needed. But it’ll be we are not our sole priority. But most of our focus, Whitney is going to be in that fun format. And we’ve drawn in a pretty tight little box as to what we can put in that fund. And so we’re looking for those, those flight to safety, defensive, low-risk assets, they’re in diversified markets, they’re, they’re newer, they’re well run. sure there’s some upside down the road, but there’s far less downside risk. And so, you know, the counterpart of that is, those deals probably aren’t going to hit north of 20% IRR, maybe one out of eight will, maybe two But they’re also not going to go bust, they’re very hard to, to screw up. There, they’re less susceptible to market forces. And that’s the position we want to be in at this late stage in the cycle. Whitney: So, you know, when thinking about structuring a deal and thinking about and I guess, you know, you talked about the hurdles and talking about, and I felt like hurdles allow the sponsor to be paid more adequately, if he’s doing really well, right. Yeah. And so, you know, as thinking about what does an investor need to be thinking about when they’re, you know, or maybe some questions that you get maybe a little higher level from a more sophisticated investor when they’re looking at your deal structure that may be the common investor wouldn’t understand. Ivan: Well, that wouldn’t be the case with me, because we work really hard to make our structure pretty simple. You know, so that the accredited investors not in the space, the physician, the dentist, right, the high paid salesperson that wants to be in real estate, but maybe not as sophisticated as say, the private equity fund, you know, that’s got hundreds of millions of dollars to place. So we want to keep it as simple as we can we’re in we’re really, really fortunate to have lots of investors that come along with us, and we’ve built those relationships over time. So we have to be careful not to get too complicated over time, or get to get too big in our britches, I think is the saying, I remember correctly. But what we do see in, I guess, maybe your traditional real estate, private equity companies, or those guys that typically will only partner with larger institutions, you almost always see a hurdle there, you see returns based on an IRR calculation before the hurdles kick in, you see lots more decision language, a lot of things that take a lot of power and authority away from the sponsor. And you know, I just don’t want to do that, it’s, I’m supposed to be the chef in the kitchen, it’s my track, record that in my pain track record that we’re betting on. So having to get permission to put my shoes on. And in go run is it’s just not a spot I want to be in, I would rather continue to partner and grow my own client base of investors that trust what we do, and want to come along with us and put their capital, their hard-earned capital next to mine. Whitney: And, you know, thinking about you talking about you all started a fund? And how does that change? How you might structure a deal? Or does it?\ Ivan: No, it does, it rhymes with what we’ve always been doing. But it definitely takes some more education for me, for me, to the investor to understand, there’s a wide spectrum of what fun can be and how it can look, and how it can operate. And so I have to do a lot of education. I’ve been on the phone for the last few months, helping my LPs, my investors understand exactly what we’re doing, why we’re doing it, why it’s an advantage to me, but also why it’s a great advantage to them. And so that that structure has changed quite a bit because predominantly, you know, my investors are no longer underwriting specific deals. new investors are coming along and they have to underwrite me as the sponsor in my team. Because you don’t necessarily get to pick and choose what deals you’re in, we do. So you’ve got to decide as an investor if that makes sense. And the way that I would look at it is really mediocre sponsor can rack a great deal pretty quickly. And a great sponsor can turn around a mediocre deal as well. And so I think most investors should be underwriting the manager, the person in charge of the deal, or the sponsor all the same thing. They’re much more intensely than they underwrite a given property. Whitney: Great advice and what are some mistakes that could be made there so ours for not is in your fund specifically, but just in how you’ve seen people structure deals? Ivan: Well, you know, it’s, it’s something that I did myself and that if I had a time machine, I would change. But it may not be that easy in today’s market, I would have charged more fees from the beginning. Now we instead of having been on the low end of the fee structure, we’re right in the middle of that bell curve, right? There’s plenty of people that are more expensive than me. And plenty less, we try to be right in the middle. And nobody’s really complained about it. What I did for the first several years was I basically grew this company on a property management revenue stream, because we have the property management in-house. And so I wasn’t charging much in the way of asset management fees or fund administration, disposition, refinance, all these things that take people, they take bandwidth and effort, right, and they take time. And, number one, good investors understand that, right? somebody that doesn’t understand that you need to make money along the way, he probably shouldn’t be in your investor group anyway. If they don’t, if they don’t get that, because it does cost money, and I can’t just work harder myself, I’ve got to surround myself with smart people. Right. And spoiler alert, if you pay them, well, they tend to stick around longer, they tend to do a better job. And by the way, you tend to attract better people. And so by right-sizing our fees, and in moving forward, we’re able to hire people and give them great tools, great resources in order for them to better or best execute their job descriptions. Whitney: Could you, I guess, maybe elaborate on phase a little bit since you know, as somebody that’s maybe done a, maybe they’ve done one syndication, they’re just getting started, you know, how, you know, and they’re trying to maybe I’ve heard people’s mindset saying, you know, we want to keep our fees lower because we don’t have a track record or, you know, that type of thought, but, but, you know, what would you be your, your answer to that? Ivan: Yeah, you know, it really depends on your market. In this, this is probably a capital raising call, type of question. But I’m going to answer now anyway, the best way to ensure that you raise enough capital for your deals is to stuff your pipeline full of potential investors always be stuffing that pipeline full of potential leads, everywhere you go, everybody, I’ve talked to, either as a potential investor or know somebody that is. And so the more you can, you can stuff that pipeline, the less definitely susceptible you are to losing somebody, you know, that you thought you had, because they thought you were over overcharging them on fees, right. So it’s more about setting your standards, setting your structure, and then finding investors that match that. So for me, it’s my job to be as transparent as I can with the investor. So that the investor who comes in all shapes and sizes and needs and wants and risk tolerances, and so on, can self-select if we’re a good fit. Whitney: I like that being transparent from the beginning. So there’s not a big, not a big change or a big surprise. Six, yeah, Whitney: we moved away. We cover the last two offerings, we’ve become more and more clear. Now. I think they’re all on one page. You know, in bold, hey, here’s, here are all the fees that come out of this deal. Here’s the list. So everybody knows what they are. And there are no surprises. And that way, you know, somebody can call me on it if they want to, and I can answer why. But to all you potential syndicators out there. If your fees are in the middle of the market already. Your good investors are good partners, which is what you want, really are going to be fine with it. Ivan: Nice. So, you know, tell me about that one page again, you said that you put your face on there, I guess just so from the very beginning, there’s no, I mean like somebody is not having to ask for your underwriting and look down deep in the underwriting to figure out what your fees are. Whitney: Correct? Yeah, we put that on a data page that’s got lots of data points on it, but then it’s got a specific area where it shows the project and fund-level fees. So everybody knows what we’re making. Ivan: Wow. Well, I haven’t you know, I really appreciate your time. But is there anything else about deal structure specifically that you’d like to share with listeners? Whitney: Yeah, you know, I would just, I would emphasize that that you the GP, the sponsor the deal, it doesn’t have to be just you. I know lots of syndicators out there that partner with other syndicators. I do mine in the house. I’m very lucky. My partner is the opposite of me. He’s much better at finding deals and managing our acquisition pipeline, and I sat His way and I’m more of what you might refer to as a capital raiser. And I just see lots of young well-equipped syndicators partnering with other syndicators and becoming more valuable as a team than they would be a part so I think this is a team sport and there are all kinds of ways to skin that cat and there are folks out there that will you know back you up financially for a piece of your deal there’s just you know, there’s really no obstacle to this business if you’re willing to learn not to give up and just continue to try and improve yourself a little bit every day. Ivan: Great and what’s your best advice for taking care of investors or maybe one thing you do to stand out amongst other operators deliver bad news quickly let’s go multifamily there’s always something going on so if you can be transparent on that and let people know when things don’t go according to plan and how you’re going to fix it or pivot investors will trust you even more. You know, one of the very first deals I had with one investor wasn’t even syndication It was called syndication light, because we just had an operating agreement is a 35 unit deal. And Whitney, I think you know that some of this but it almost killed me. And everything that could have gone wrong on that deal went wrong. And we ended up selling it and doing about a 9% IRR on five years. So it wasn’t all bad. We didn’t lose money, we made a return far less than we had hoped. But the whole time I was honest and upfront with my investor did everything I could to keep him in the loop and let him know, you know, hey, we changed the plan again, we’re trying now that guy’s still with me today still investing six figures and in my deals, and happy to do it. And that’s translated into how we handle our investors now and in the future. And by doing that, you’re going to get a lot more investors that are willing to write bigger checks. most sophisticated investors, if you try to pretend like you’re batting 1000, or if you have not made mistakes, if you’re not upfront about those things, and honest, they’re gonna smell it anyway. And they might not tell you that, but they probably won’t invest with you. Whitney: Appreciate that? I have no doubt you gotta let them know. Communication is key in most relationships. Yeah, absolutely. I’ve seen that one. So you know, you’ve been a great and a great guest. I appreciate your time again, being on the show. And tell the listeners how they can learn more about you and get in touch with you. Ivan: It’s always great to be here with me. I appreciate you letting me ramble on here and there is a lot of fun. So I’m pretty easy to find if you spell my last name correctly. Barrett ba RR att. If you Google me, Ivan Barrett, you can find me. I’ve embedded an education website I put together for high net worth investors to learn more about me, my team, and our investment thesis. The corporate site is Barrett asset management’s got another website. I’ve been very calm. And you can call me at 317-762-2625 31776 to 2625. Whitney:: Wow, appreciate you putting that out there. Not everybody puts their phone number out. So what an opportunity to listeners out to give him a call. And so thanks again, Ivan. I appreciate the listeners being with us today and every day, and I hope you’ll also go to LifeBridge capital and connect with me and go to the Facebook group, the real estate syndication show, so we can all learn from experts like Ivan and grow our businesses together. We’ll talk to each of you tomorrow. Ivan: Thanks again. Whitney: Thank you for listening to the real estate syndication show. Brought to you by Lifebridge capital. Life bridge capital works with investors nationwide to invest in real estate, while also donating 50% of its profits to assist parents who are committing to adoption life bridge capital, making a difference one investor and one child at a time. Connect online at www dot Lifebridge Capital comm for free material and videos to further your success.
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