Multifamily Syndication Returns
Table of ContentsEven in downmarkets, most investors have their eyes on real estate investment opportunities. Infact, many savvy investors only buy during economic downtimes. There are also multiple ways to get into real estate investing. However, not all investments are as stable and consistent as multifamily real estate investing. Simply put, everyone needs a place to live. This asset class typically performs very well even during times of economic uncertainty, such as the pandemic. If you are an accredited investor, you have more investment opportunities available to you, and that extends into real estate as well. A lot of investors have discovered that real estate syndication deals can allow them to put their money to work. Real estate syndication is ideal for those who wish to participate in a passive investment. Passive investors can earn a share of cash distributions throughout the deal’s lifespan. These deals typically last for years, although the exact details may vary from one syndication to another. Usually syndications last for 3 to 7 years, sometimes even more. Also depending on the deal structure, investors may earn a share of the equity upon resale of the multifamily property. Here we are going to discuss the expected returns for these investments. This should help you make an informed decision on your real estate investment. What is Multifamily Syndication?First, let us talk about multifamily syndication and how it works. A real estate syndication deal involves multiple passive investors pooling their resources together to purchase a single real estate property. These real estate deals can be done with most types of real estate, but multifamily investment opportunities are the most popular for a number of reasons. Multifamily real estate such as apartment complexes, duplexes, triplexes, and condominiums have more than one unit, meaning they have a reduced risk of becoming fully vacant at any given moment. Multifamily properties are also known for their strong cash flow. [1] Because these are larger properties, they also tend to be more expensive and therefore more difficult to buy for a lone investor, even accredited investors with large annual income and net worth. With multifamily syndication, it is now easier for investors to invest in larger real estate properties. A syndication deal is put together by a syndicator who acts as the General Partner (GP) or primary sponsor. They are in charge of locating the best real estate property for syndication, coordinating the funding, and finding accredited investors who will participate in the deal and provide most of the capital needed. [1] As an investor in a syndication deal, you do not have to secure a huge down payment because there are multiple investors funding the property. A limited liability company (LLC) or limited partnership (LP) is typically formed for real estate syndications. Passive investors act as Limited Partners in the deal. Whether or not this is a good investment for you depends on your financial situation, personal goals, and risk tolerance. A real estate syndication deal provides passive income along with a tangible asset that appreciates over the long term. If you want to try multifamily investing but do not want to purchase an entire apartment building all on your own, try multifamily syndication. What Kind of ROI Can Accredited Investors Expect from This Real Estate InvestmentBecause people always need somewhere to live, multifamily apartment buildings are considered some of the best offerings when it comes to real estate syndication. With multifamily investment opportunities, you can expect a generally stable cash flow, and even an opportunity for appreciation. [2] While the exact return on investment will vary based on multiple factors, the equity splits as well as the cash flow distributions are pre-determined, calculated, and outlined in the Private Placement Memorandum (PPM) and Operating Agreement. This means you will be informed about everything before you even send your investment capital. [2] This gives investors the opportunity to review returns projections and perform their due diligence before investing. Investors may do their own calculation using Cash-on-Cash Return. This is a measure of your return on investment (ROI), calculated on an annual basis by taking the cash flow you receive and dividing it by your initial investment. [3] If an investor puts in $100,000 into a syndication deal and receives $8,000 in distributions for the first year, this means their Cash-on-Cash Return is 8%. Cash-on-Cash Return usually ranges from 5% to 10% and increases over the life of the investment as the syndicator optimizes the property. [3] Do keep in mind that this calculation does not include the big prize at the end of a syndication deal when the property is refinanced or sold, and that is the equity. When taken into consideration, this may further push your annual return up to 22%. Again, each syndication deal will vary based on a number of factors so exact ROI is very difficult to determine. The Benefits of Multifamily Real Estate Investing for Accredited InvestorsSome investors do not want to get into multifamily real estate investing because they know these real estate assets can be difficult to manage. Playing the role of landlord—especially if you do not have experience—can be tricky. You have to deal with emergencies, collect rental income, manage property taxes, keep up with repairs and maintenance needs, and communicate with tenants. However, you do not have to be intimidated by the idea of becoming a landlord. One of the greatest advantages of a multifamily syndication deal is that the syndicator handles property management. This means multifamily syndication is a truly passive investment wherein you can just sit back, relax, and focus on your other investments. You can collect passive income and let your money work for you. Meanwhile, the syndicator will either hire a property management team or take care of the real estate property themselves. The syndicator has plenty of responsibilities. They pay attention to real estate market cycles, look for high quality real estate for syndication, put the deal together, and even handle property management. Because multifamily real estate properties tend to generate a strong and steady cash flow, it usually justifies hiring a professional property management company to take care of the day to day necessities of the apartment. They will keep it running on your behalf. But sometimes syndicators take a more active role by managing the property themselves and optimizing it to create forced appreciation. Either way, it is out of your hands. A multifamily syndication deal addresses two of the biggest concerns for real estate investors: the high barrier to entry and property management. Beyond this, there are other reasons why you should consider investing in a multifamily syndication, especially if you are an accredited investor. Multifamily syndication offers tax benefits. Investors get certain tax benefits through their K-1 tax filings by owning a piece of the real estate property. [4] The government incentivizes investors for providing housing for residents of any given city. For this, they reward investors with tax breaks and tax incentives. [5] The value of the property gradually increases over time, which means your multifamily syndication will also benefit from appreciation. This will increase your potential ROI. Participating in multifamily syndication is also a good way to diversify your investment portfolio. Not only will you be able to try real estate investing, you will even have the opportunity to spread your capital across multiple syndication deals. Real estate syndication will help you boost your investment portfolio quickly. [4] The only challenge you will face with multifamily syndication is that your capital will be locked up for a long time. Since these syndication deals last for years, you will not be able to access these funds for a significant period. You have to be aware that these investment opportunities come with a bit of illiquidity, which you must be comfortable with. This is why real estate syndication deals are exclusive to accredited investors. They have the financial capability to participate in these deals and still have a big enough safety net to deal with the risks involved. Real estate investments always come with a bit of risk. Accredited investors have the financial sophistication to make informed investment decisions. Overall, multifamily syndication is a hassle-free investment strategy suitable for accredited investors looking for a great source of passive income. Why Accredited Investors Trust BAM Capital for Multifamily Real Estate SyndicationNow that you understand how multifamily syndication deals work, you can decide on which syndicator to work with for your first real estate syndication deal. BAM Capital will help you invest in multifamily real estate syndication without the headache of becoming a landlord or managing tenants. This Indianapolis-based syndicator has a strong Midwest focus, offering high quality multifamily real estate properties that are Class A, A-, and B++. With its award-winning multifamily investment strategy, BAM Capital helps accredited investors grow their wealth through syndication. [6] BAM Capital uses a vertical integration strategy that mitigates investor risk and creates forced appreciation to boost their ROI. This syndicator is also known for its consistent track record. In fact, BAM Capital currently has over $700 million AUM and 5,000+ units. [6] BAM Capital provides a safe and passive investment for accredited investors looking to get into real estate investing. They will negotiate the purchasing and financing of high quality multifamily properties on your behalf. 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. Accredited investors can schedule a call with BAM Capital and invest today.
BAM Multifamily Growth & Income Fund IIIBAM 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.
Sources: [1]: https://www.qccapitalgroup.com/post/ultimate-guide-to-multifamily-real-estate-syndication [2]: https://goodegginvestments.com/blog/a-peek-into-the-projected-returns-in-a-real-estate-syndication/ [3]: https://www.linkedin.com/pulse/what-return-should-passive-investor-expect-from-dant%C3%A9-belmonte [5]: https://www.nirmalbang.com/knowledge-center/benefits-of-investing-in-stocks.html
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 Returns appeared first on BAM Capital. Via https://capital.thebamcompanies.com/2022/10/multifamily-syndication-returns/
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Vertically Integrated Multifamily Real Estate Company
Table of Contents
Navigation: Assets that Count Toward Accredited Investor Levels, How to Become an Accredited Investor, How to Calculate Your Net Worth, Advantages and Disadvantages of Being an Accredited Investor, How Much Can an Accredited Investor Invest?, Investment Opportunity for Accredited Investors: Multifamily Syndication, Work with BAM Capital for Multifamily Syndication
A vertically integrated company is one that takes direct ownership of various stages of its production in order to streamline its operations. Instead of outsourcing and relying on external contractors or suppliers, these companies acquire their own suppliers, distributors, manufacturers, etc. It can be risky for a company to start vertical integration because of its significant capital investment. But for companies like BAM Capital, which has already achieved vertical integration successfully, their clients can enjoy all the benefits that this provides. This article will explain how vertical integration works and what this means for a multifamily real estate company. We will also discuss why BAM’s vertically integrated real estate model generates great returns. Real Estate Investing: What Does It Mean To Be Vertically Integrated?Usually, a company only handles a single point in the manufacturing process. But if the organization wishes to be more self-reliant, it can start taking on other aspects of this process. This is what vertical integration is. [1] In order to practice vertical integration, a company may start directly sourcing its own raw materials, for example. They may also begin to distribute their own products and sell to their consumers rather than hiring a third party organization to do it for them. A company can use vertical integration to broaden its footprint across the supply chain or manufacturing process. In terms of real world companies, Netflix, Inc. is a good example of vertical integration. While it began as an online streaming platform for films and TV shows, it now produces its own original content to increase their profits and strengthen the Netflix brand. By performing vertical integration, Netflix no longer fully relies on the content of other production companies and major studios, although it is still a major part of their streaming service. [1] As for vertical integration in real estate investing, BAM Capital is the perfect example. BAM Capital handles all steps of the investment life cycle, from purchasing to remodeling, to management, yielding a higher return for investors by streamlining its operations. A company needs to have direct ownership of suppliers, distributors, and retailers in order to have vertical integration. With greater control over its supply chain, the company enjoys reduced costs and greater efficiency. [1] The supply chain typically begins with the purchase of raw materials from a supplier. It then ends with the sale of the final product to the customer. There are plenty of steps along the way, including manufacturing, distribution, marketing, etc. The company works with suppliers who provide these services. But with vertical integration, you can own the supply chain by taking control of some or all of these steps. Doing this is no easy feat. The company needs to find a way to successfully purchase or recreate that part of production, distribution, or retail. This makes them self-sufficient as they no longer have to outsource that step, which also reduces manufacturing costs. [1] Vertical integration is a costly process that requires a substantial investment. Not all companies can do it successfully like BAM Capital. Clients get to enjoy the benefits of this streamlined process as well, because it means they only have to work with the vertically integrated real estate company and know that they are in the right hands. Vertical integration tends to increase the size of the company’s operations, meaning it also gets more complex. Types of Vertical IntegrationThere are three types of vertical integration: forward integration, backward integration, and balanced integration. The first two are the most common. These types simply refer to the manner in which a company acquires the other steps of the manufacturing process. If a company acquires a supplier that is further along in the supply chain, this is called forward integration. If a company acquires a vendor that is prior to it along the supply chain, this is called backward integration. [1] Balanced integration is when a company attempts to achieve both at the same time, by merging with companies that come before and after it in the supply chain. To achieve this, the company has to be “the middleman” in the first place. A balanced integration is costlier, but it gives the company the greatest potential upside as it can take over the entire supply chain. Benefits of Vertical Integration for a Multifamily Real Estate CompanyA real estate investment company can benefit from vertical integration in a number of ways. For starters, a company like BAM Capital that can handle the complexity of vertically integrated real estate can be considered an expert in its field. A vertically integrated real estate company has an unmatched level of domain expertise. This means BAM Capital also has an incredible understanding of the real estate market and best practices. BAM Capital clients can therefore enjoy the benefit of working with an industry expert that can offer the best real estate investments for accredited investors. A real estate company that is vertically integrated has far more industry knowledge and experience compared to one that only handles one part of the supply chain such as acquiring commercial properties. [2] BAM Capital handles everything involved in the investment life cycle, from purchasing to property management. This level of involvement has given BAM the expertise necessary to identify and acquire only the best multifamily properties for their investors. Since BAM also handles things like remodeling and construction, this saves and generates a lot more money for its investors. Vertical integration can maximize the returns for investors. A vertically integrated real estate company can also make more deals viable. With its own construction unit, a vertically integrated company can pursue projects that other companies cannot, and they can do so with the confidence that their construction unit is operating with their interests in mind. [2] Real estate companies that only outsource certain jobs do not have this same reassurance; therefore certain projects are not as viable for them. They will have to look for a third party company to rebuild investment properties to bring it up to rent-worthy condition. It would require more preparation, planning, and money to make the project work for them. [2] Overall, vertical integration helps generate greater returns for the company’s investors. Finally, a vertically integrated company also benefits from economies of scale. When a company increases its level of output, it can give them proportionate cost advantages. For example, BAM Capital is a vertically integrated real estate company specializing in multifamily properties in the Midwest. This means that the company knows everything there is to know about properties in that area, including market values and the most cost-effective ways to develop such properties. BAM Capital has already established expertise when it comes to Class A, A-, and B++ properties in this area, making them the go-to company for accredited investors looking for multifamily assets and real estate syndication deals. Performed well, vertical integration will give a company greater control over the supply chain, which will lead to lower reliance on external parties and lower costs. While it’s true that the company will have to take on more responsibilities as they take control of the supply chain, it will also lead to faster turnaround times. If the whole process is done by a single company in-house, then this also means simpler logistics. Despite having more things to manage, the company will be able to get everything in proper order because all steps of the manufacturing process are perfectly aligned. [2] Keep in mind that vertical integration is a long and difficult process. It cannot be achieved overnight. The company will have to buy into the entire manufacturing process. This means they have to spend on new systems, new equipment, staff training, etc. [2] Any company that manages to implement vertical integration while narrowing its focus on its area of expertise will be able to develop effective processes that push them toward their long term goals. BAM ConstructionThe BAM Companies, formerly known as Barratt Asset Management, is one of the best examples of a vertically integrated company in real estate. It specializes in the acquisition and management of multifamily properties, particularly apartment communities. [3] It is headquartered in Indianapolis, Indiana and consists of BAM Capital, BAM Management, and its latest addition, BAM Construction. The BAM Companies has successfully implemented vertical integration. Now it is able to utilize its market expertise, as well as the knowledge and strengths of its employees, to achieve maximum benefit for community residents and investors alike. [3] BAM Construction was added in 2015, providing upgrades to features and amenities, and officially completing the vertical integration process for The BAM Companies. This means The BAM Companies can now cover every part of the real estate investing process from start to finish. All clients have to do is participate. BAM ManagementMeanwhile, BAM Management specializes in the acquisition and management of multifamily apartment communities. BAM Management hires local talent with market expertise, which benefits investors and residents alike. BAM Management began in 2010 but quickly grew into one of the best real estate management companies in the country. It went from managing a few small properties to taking on more than $700 million in total assets. For a company that offers multifamily syndication deals, having a management company is a huge advantage. This is because syndication deals are designed to be passive investments wherein investors do not have to play the role of landlord. The responsibility of managing the apartment complex usually falls on the syndicator, who either hires a third party property management company or handles it themselves. With BAM Management, The BAM Companies ensures that the investment properties are properly handled so that they are always in top condition. BAM Management keeps an attentive and experienced staff from the front desk to the maintenance teams. They will take care of the residents and make sure they have a pleasant experience. BAM Management also makes it as easy as possible for tenants to submit repair requests, ask questions, and pay rent with the help of on-site staff or through the use of the latest technology. As a whole, The BAM Companies only manages communities that it is proud of. This is why even staff choose to live at these locations simply because of the convenient locations, the amazing amenities, and the incredible value for their money. BAM CapitalBAM Capital is the private equity arm of The BAM Companies, which is an institutional real estate owner/operator. BAM Capital works with accredited investors, giving them access to premier real estate investing opportunities through multifamily real estate syndication deals. BAM Capital offers transparent stewardship of capital, as well as a means to achieve portfolio diversification. By investing with BAM Capital, accredited investors are able to enjoy tax advantages, plus the ability to build long-term wealth. Why Our Model Works So WellThere are several reasons why The BAM Companies model works so well and vertical integration is a huge part of it. The BAM Companies invested in launching all three companies and making sure each of them was successful enough to stand on its own. This is why BAM Capital, BAM Management, and BAM Construction all work so well together as one giant real estate operation. From upgrading amenities to finding the best multifamily assets to managing properties and giving tenants a one-of-a-kind experience, The BAM Companies can provide it all. But its success is not merely because it is a vertically integrated company. BAM Capital prioritizes Class B++, A-, and A multifamily assets with in-place cash flow and proven upside potential to make sure investors can make a profit out of their investment. This strategy mitigates investor risk. It also allows the fund to target consistent monthly cash flow. As previously mentioned, vertical integration comes with the added benefit of establishing local expertise, which The BAM Companies has also achieved thanks to its strong Midwest focus. BAM Capital leverages local expertise and long-standing relationships with real estate developers, brokers, sellers, and builders to give them expert knowledge on assets being purchased. BAM Capital has unmatched expertise thanks to its vertical integration and transparency. Why Work with BAM CapitalAs a whole, real estate is a great asset class to invest in. There are also many ways to participate. You can go for a commercial real estate investment, a residential real estate property, or even vacant land. But for accredited investors, there is another viable option and that is multifamily real estate syndication. In a syndication deal, multiple investors pool their resources together in order to purchase a single real estate property. This is arranged by a syndicator: in this case, BAM Capital. BAM Capital has you covered from start to finish: from locating the multifamily real estate property, to putting the deal together, to managing the property. For investors who want to enjoy all the benefits of owning multifamily real estate without the headaches of being a landlord, a syndication deal is the ideal investment. [4] BAM Capital negotiates the purchasing and financing of high quality real estate on behalf of their investors. It is known for its award-winning multifamily investment strategy that creates forced appreciation. In fact, BAM Capital now has over $700 million dollars in assets under management (AUM) and 5,000+ units. [4] 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. Accredited investors can schedule a call with BAM Capital and invest today.
BAM Multifamily Growth & Income Fund IIIBAM 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 Vertically Integrated Multifamily Real Estate Company appeared first on BAM Capital. Via https://capital.thebamcompanies.com/2022/10/vertically-integrated-multifamily-real-estate-company/ What Assets Count for Accredited Investor?
Table of Contents
Navigation: Assets that Count Toward Accredited Investor Levels, How to Become an Accredited Investor, How to Calculate Your Net Worth, Advantages and Disadvantages of Being an Accredited Investor, How Much Can an Accredited Investor Invest?, Investment Opportunity for Accredited Investors: Multifamily Syndication, Work with BAM Capital for Multifamily Syndication
Not everyone can make all types of investments. Some investments, such as hedge funds and venture capital funds, are limited to accredited investors. These exotic investments are typically free from the rules and regulations that normally protect investors from the risks involved. This is why only those who meet the requirements are allowed to participate. With that said, a lot of investors wonder if they can meet those requirements, become an accredited investor, and join in on exclusive investment opportunities. Accredited investors are able to invest in unregulated securities offerings, including those that are considered risky. With their advanced investing knowledge and the safety net provided by their financial status, they are better able to handle all the risks associated with these securities. [1] Thanks to their annual income and net worth, accredited investors can access investment opportunities that are not available to all retail investors. The US Securities and Exchange Commission (SEC) restricts these investments to protect regular people from these riskier investment vehicles. Non-accredited investors do not have a financial cushion to fall back on in case an investment does not work out. [1] This does not imply that all early-stage startup companies and hedge funds will lose money. However, they are considered inherently riskier because they are only required to provide basic information to their investors. [1] Accredited investors go for these investments, not only to diversify their investment portfolio but in hopes of reaping greater rewards. These investments are particularly attractive to experienced investors. Having the accredited investor status means you have enough investing experience to know what you are doing. Today we will be exploring the accredited investor concept, look into its definition, and find out what assets count when verifying the accredited investor status. Assets that Count Toward Accredited Investor LevelsWhile there is no official accreditation process for accredited investors, those who fit the SEC definition can participate in exclusive investments. According to the SEC, an accredited investor is someone who has an annual income of at least $200,000. They may also have a joint income of $300,000 with their spouse. This must be the investor’s level of income for at least two years, with a reasonable expectation that they will earn the same amount in the current year. [1] A net worth calculation can also be used to determine accredited investor status. An investor with a net worth of $1 million or more, either individually or with their spouse, may be considered accredited. [1] However, the value of the person’s primary residence has to be excluded from the net worth calculation. Before the passage of the Dodd-Frank Act in 2010, the value of the residence was included in the process of determining net worth. [3] Investors who are considered “knowledgeable employees” of certain investment funds are also considered accredited. Individuals who hold Series 7, Series 65, or Series 82 FINRA certifications and are in good standing can also qualify as accredited investors. [4] On August 2020, the SEC amended the definition so that more people could be classified as accredited investors. They announced through a press release that people with certain certifications, credentials, and designations would be considered accredited investors. This is on top of the existing income and net worth tests. [4] The amended definition now includes governmental bodies, Indian tribes, and even entities that “own” investments as defined in Rule 2a51-1(b) under the Investment Company Act, in excess of $5 million. The fund or entity must be organized under the laws of foreign countries but not for the specific purpose of investing in the available securities. [5] Limited liability companies (LLC) with $5 million in assets are now also qualified as accredited investors.[5] The SEC has also added the term “spousal equivalent” for those who are not married but meet the other financial qualifications of an accredited investor.[5] How to Become an Accredited InvestorDespite the rigid criteria for becoming an accredited investor, there is actually no federal verification process that investors have to go through in order to become accredited. The burden of proving that an investor is qualified for certain securities offerings falls on the investment vehicle itself. The company offering the securities will have to verify the status of prospective investors before allowing them to invest. [2] Accredited investments usually require investors to fill up a questionnaire and provide certain documentations that prove their net worth or annual income. They may be asked for financial statements, tax returns, proof of securities licensing or employment, etc. How to Calculate Your Net Worth
If you think you may qualify for prospective investment opportunities that are exclusive to accredited investors, you may want to calculate your net worth. It is not specifically about the assets you own, but whether or not your net worth is over $1 million, when excluding your primary residence.[1]
To calculate your net worth, simply add all of your assets and subtract all liabilities. You also have to exclude your mortgage or loan on said primary residence. Keep in mind that if the loan on your primary residence is more than its estimated fair market value, then it counts as a liability and has to be included in the calculation. [1] Advantages and Disadvantages of Being an Accredited InvestorBeing an accredited investor has its pros and cons. The main benefit of qualifying as an accredited investor is having access to potentially lucrative investment opportunities that are not available to those with less wealth. It gives unique opportunities to grow your wealth and diversify your investment portfolio within a shorter period of time. Hedge funds are a great example of this. Hedge funds require high minimum investment amounts. But most accredited investors go for hedge funds despite the higher risks involved because of the exceptional potential returns. [3] With more options, accredited investors are able to locate higher yield investments. They can even invest in small businesses, startups, and businesses that are still in development. In terms of diversification, accredited investors do not have to rely on public markets because they can easily find alternative investments and assets. There are barely any disadvantages to becoming an accredited investor. It really just gives you access to more investment opportunities. If there is any, it’s the fact that a lot of these unregistered and illiquid securities can be riskier than your usual investment vehicles. But accredited investors have the financial safety net and the investing knowledge to properly navigate these risks. They can make informed financial decisions because they are considered financially sophisticated. For this same reason, these securities are inaccessible to regular investors because they cannot afford to lose a few hundred thousand or even a few million dollars. This is something accredited investors often do. But with their net worth and annual income, they can survive such an event. Accredited investments also have a long capital lock up time, which means you cannot access your money for as long as the deal is in place. Your money may be locked up for a year, up to several years. This means accredited investors cannot just pull their money out any time they want. Being an accredited investor means you have to get used to this level of illiquidity.[3] How Much Can an Accredited Investor Invest?Because accredited investors are typically wealthy individuals, they are able to invest in hedge funds, venture capital funds, private funds, etc. There is no particular limit to how much an accredited investor is allowed to invest since they are using their own capital. With that in mind, some funds may have their own limitations when it comes to investment amounts that they will accept from individual investors. [3] Investment Opportunity for Accredited Investors: Multifamily SyndicationReal estate syndication is one of the investment strategies that are exclusive to accredited investors. It is the perfect investment vehicle during times of economic uncertainty because even in a recession, people need a place to live. Multifamily properties in particular are very lucrative because they can provide a strong and steady cash flow. But as most investors know, real estate is expensive and owning even a single-family property takes a lot of hard work. Owning and managing an apartment building or a condominium is even more challenging. That is the kind of problem that real estate syndication solves. If you are an accredited investor and want to get into real estate investing but don’t want the hassle of being a landlord, real estate syndication is the right investment for you. In a syndication deal, a syndicator or general partner locates the real estate property, secures the loan, and looks for investors who will participate. The investors will pool their resources together to supply most of the capital needed to acquire the property. While a syndication deal can be done for any type of real estate property, multifamily syndication is the most popular because it can produce consistent cash flow. [5] With a multifamily property, you don’t have to worry as much about vacancies because there are many units that generate income through monthly rent. Multifamily properties are also generally more expensive, which makes them more difficult for lone investors to acquire. A multifamily syndication deal makes it possible for them to participate in real estate investing without putting in as much money. Aside from putting the deal together, the syndicator is also in charge of property management. This makes it a true passive investment. Accredited investors don’t have to worry about collecting rent, managing tenants, handling emergencies, paying for repairs, etc. [5] The syndicator can either handle these tasks on their own or hire a third party property management company. In any case, passive investors don’t have to play the role of landlord. In return for their contribution, passive investors can earn equity and a share of the monthly cash flow, depending on the fund structure. Work with BAM Capital for Multifamily SyndicationAccredited investors have access to some amazing investment opportunities. If you are interested in multifamily syndication, you should work with the best. BAM Capital is a syndicator with a strong Midwest focus and a consistent track record. This Indianapolis-based syndicator prioritizes Class B++, A-, and A+ multifamily assets with in-place cash flow and proven upside potential. [6] Known for its unmatched real estate expertise and transparency, BAM Capital aims to mitigate investor risk and create forced appreciation. BAM Capital locates high-quality real estate opportunities and negotiates financing on behalf of accredited investors. BAM Capital takes care of everything from start to finish. In fact, they currently have over $700 million AUM and 5,000+ units. [6] 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. Accredited investors can schedule a call with BAM Capital and invest today.
BAM Multifamily Growth & Income Fund IIIBAM 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 Assets Count for Accredited Investor? appeared first on BAM Capital. Via https://capital.thebamcompanies.com/2022/10/assets-count-accredited-investor/ BAM Capital Acquires Autumn Ridge In Des Moines, IAIndianapolis, Indiana-based multifamily syndication company BAM Capital is pleased to announce its recent acquisition for the BAM Multifamily Growth & Income Fund III: Autumn Ridge. Autumn Ridge is a 434-unit institutional quality, garden-style apartment community that was developed in 2017 and 2019. It is located in Waukee, Iowa, one of the fastest-growing suburbs of Des Moines, Iowa. “The value-add potential both in utilizing our economies of scale in Des Moines and bringing rents in line with the competition in the area more than exceeds BAM Capital’s strict acquisition criteria,” says Tony Landa, Chief Investment Officer. “Des Moines is an emerging market similar to Indianapolis a few years ago,” says Ivan Barratt, Founder & CEO. Autumn Ridge will be BAM Capital’s fourth multifamily asset in the Des Moines, Iowa MSA. Autumn Ridge features a diverse set of floor plans, a comprehensive amenity package, two swimming pools, and strong in-place cash flow. With many well-known and stable employers in the area including Microsoft, MercyOne, Wells Fargo, and more, BAM Capital is confident that it can deliver a targeted 15-20% IRR return on investments for its investors. As part of the vertically integrated The BAM Companies (BAM Capital, BAM Management, BAM Construction), BAM Capital has over 100 years of experience among Executive level staff. With over $700MM assets under management, over $152.5MM in distributions to investors, and 900+ investors across 40+ states, BAM Capital is a proven sponsor with a solid track record. Autumn Ridge will join Hamilton Station and The Bristol as part of BAM Multifamily Growth & Income Fund III. Hamilton Station and The Bristol are both located in the Indianapolis, Indiana metropolitan statistical area. This offering is open to accredited investors only. To learn more about BAM Capital or this offering, please visit our website.
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About BAM Multifamily Growth & Income Fund IIIBAM Multifamily Growth & Income Fund III is now accepting capital from accredited investors in anticipation of the next acquisition. The strategy of Fund III is to acquire Class B+ to A- assets that were built after 2000. All assets in this fund have strong, consistent in-place cash flow in markets where there is a supply and demand imbalance along with major economic drivers. By using a fund model, BAM Capital eliminates “single asset risk” through portfolio diversification. The expectation that one or two assets may significantly outperform projections further increases the likelihood of a higher overall return for investors. This offering targets 15-20%+ IRR or 2.0x-2.5x Equity Multiple over a targeted 3-5 year hold period. About The BAM CompaniesThe BAM Companies specializes in the acquisition and management of multifamily apartment communities. Headquartered in Indianapolis, Indiana, The BAM Companies consists of BAM Capital, BAM Management, and BAM Construction. This array of real estate services utilizes the knowledge and strengths of its employees and market expertise to achieve maximum benefit for community residents and investors. The BAM Companies currently has over $700 million in total assets under management. Learn more BAM Capital Website: https://capital.thebamcompanies.com Phone: 463.227.0773 Email: [email protected] For marketing inquiries, Vicki Johnson Manager, Investor Relations 762.212.1113 The post BAM Capital Acquires Autumn Ridge For Fund III appeared first on BAM Capital. Via https://capital.thebamcompanies.com/2022/10/bam-capital-acquires-autumn-ridge-for-fund-iii/ Top Real Estate Syndication CompaniesAccredited investors looking into real estate investing can typically purchase large apartment complexes and other multifamily deals. But as you may know, these properties are huge, expensive, and difficult to maintain. So you may be wondering how they are able to handle it. Even if accredited real estate investors have the financial ability to purchase a multifamily real estate property, it is not always a smart idea to do so. A better approach is to look for real estate syndication deals for properties that you think could be profitable. Determining whether or not a real estate property might be profitable isn’t necessarily your job, however. Real estate syndication firms use their expertise to look for properties that are potentially lucrative. They then put a real estate syndication deal together and locate passive investors who will participate in the investment.
Here we will discuss the top real estate syndication companies out there that you can work with so you can be part of the most lucrative real estate syndications. What is Real Estate Syndication?Before we discuss the companies that can help you find real estate investment opportunities, let’s talk about real estate syndication first. What is it and how does it work? Simply put, a real estate syndication deal is a group investment that allows sponsors to invest in properties that they would not be able to afford otherwise. The sponsor, also known as the syndicator, puts the deal together. They are responsible for researching and evaluating potential properties that could be used for the syndication deal. They also raise the funds needed to purchase the property and look for investors who will participate in the investment. Passive investors contribute money to help fund the deal. [1] Multiple investors pool their resources together to buy a single real estate property. Any type of property can be used for a real estate syndication deal, even commercial real estate projects. However, multifamily properties are the most popular type of syndication, especially among accredited investors. [2] Single family properties have the risk of becoming vacant, which can be bad for your cash flow. On the other hand, multifamily properties have more than one unit so they are not heavily impacted by vacancies. Multifamily properties have multiple units, which means it can be a strong and consistent source of cash flow. Not to mention larger properties like condominiums and apartment complexes are generally expensive, meaning they are much harder to obtain for a lone investor. A real estate syndication deal makes it possible for investors to put money into these properties. The role of the syndicator is to put the deal together and find investors. Syndicators also share the risks as well as the returns on the multifamily investment. In the deal structure, they are typically considered General Partners (GPs) while passive investors are Limited Partners (LPs). The real estate syndication company will take care of all the little details including underwriting, networking with investors, researching properties, negotiations, and due diligence. On the other hand, investors play a much more relaxed role. They invest on the property to receive equity from the deal and a share of the cash flow. This depends on the deal structure, as not all multifamily syndication deals are the same. In the real estate syndication industry, syndication deals are usually formed as LLCs or Limited Liability Companies. They may also be formed as Limited Partnerships (LP). [1] What are the Benefits of Multifamily Syndication?Because of the way syndications work, you are pooling your money with other investors and therefore exposing yourself to fewer risks. Imagine how risky and expensive it is to purchase a large multifamily property all on your own. In the real estate syndication space, you are only liable for losses that are equivalent to what you invested. Unlike other investment types, you don’t have to bear the load of all the losses. The lowered risk is not the only benefit of investing in multifamily syndication. In fact, these investment opportunities can be potentially lucrative for a number of reasons. For starters, larger properties tend to enjoy high occupancy rates. This means lower vacancy rates and a much smaller toll on your pockets. Even in the case of an occasional vacancy, the high quality real estate properties offered by some of these investment companies tend to draw in a lot of attention, so they don’t stay vacant for too long. The high occupancy rate means it can generate a strong cash flow. [1] Additionally, the passive nature of real estate syndication means that it is much less time-consuming than other investments. In fact, you don’t even have to take care of the property once it has been purchased. Property management falls on the shoulders of the syndicator. This means multifamily syndication is a truly passive investment where you can just sit back, relax, and let your money work for you. With real estate syndication, you do not have to play the role of landlord. There’s no need to manage tenants, handle emergencies, collect rent, etc. The syndication company will do it for you, either by hiring a third company property management company or by handling it themselves. Either way, you do not have to do anything. Real estate syndication gives you all the benefits of owning a real estate property without the headaches of managing one. Keep in mind that most syndication deals are exclusive to accredited investors. What are the Top Real Estate Syndication Companies?If you want to be a passive real estate investor, you have to look for a real estate syndication company to work with. You can look at real estate crowdfunding platforms or join real estate networking groups. However, some companies stand out from the rest. BAM CapitalBAM Capital is an Indianapolis-based syndicator with a strong Midwest focus. BAM Capital prioritizes Class A, A-, and B++ multifamily real estate properties. This company ensures that investors can enjoy a passive real estate investment that will help them grow their wealth. BAM Capital helps accredited investors enjoy all the benefits of owning multifamily real estate without having to play the role of landlord. Investors can focus on their other investments while BAM Capital does all the work for the multifamily syndication. BAM Capital negotiates the purchasing and financing of high quality real estate on your behalf. In fact, they can even create forced appreciation while mitigating investor risk thanks to their award-winning multifamily investment strategy. [3] The company now has over $700 million AUM and 5,000+ units. It goes without saying that accredited investors trust BAM Capital. This is the best syndicator for you if you want a safe and passive investment in multifamily real estate. BAM Capital For The WinWe at BAM Capital are very confident that we have THE BEST plan for growing wealth for our investors through real estate investments. That being said, there are other companies that invest into different parts of the country. So, here are a few that. When people discuss investments for accredited investors, they usually think about hedge funds, private placements, and venture capitals. But accredited investors have access to even more investment opportunities thanks to their high net worth and annual income. Real estate syndication is one of the opportunities exclusive to accredited investors. If you are an accredited investor and you want to invest in high quality multifamily apartment complexes, BAM Capital is the best syndicator for you. Just remember that 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. Accredited investors can schedule a call with BAM Capital and invest today.
BAM Multifamily Growth & Income Fund IIIBAM 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 Top Real Estate Syndication Companies appeared first on BAM Capital. Via https://capital.thebamcompanies.com/2022/10/top-real-estate-syndication-companies/ Can You Self-Certify as an Accredited Investor?
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About UsBAM Capital is the best team for private real estate funds and investing in multi family units. BAM Capital leverages local expertise and long-standing relationships with sellers, brokers, and builders to allow for expert knowledge on assets being purchased. Speak to BAM Capital today. Archives
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