BAM CAPITAL PRODUCT INFORMATION

What types of assets does BAM Capital prefer to invest in?

BAM Capital loves the suburbs. We avoid the urban core while targeting secondary or tertiary markets with workforce housing and Class A assets.

What services does BAM Capital offer?

BAM Capital is the private equity arm of The BAM Companies, an institutional real estate owner/operator. We offer our family of investors access to premier real estate investment opportunities, transparent stewardship of capital, a means to achieve portfolio diversification, and tax-advantaged, long-term wealth creation.

Will fund properties be cross-collateralized?

No. The properties are not cross-collateralized. Each asset is a special purpose entity (SPE) with individual debt.

Will I invest in just one property or multiple?

For fund investors, no matter which asset you invest in with the fund, you (as the LP) invest in all the assets inside the fund. Whether you invest $50,000 or $5M, your capital spreads across a portfolio of apartments rather than a single asset.

What are the differences between common and preferred equity?

In real estate, common and preferred equity represent different positions within the capital stack. They also differ in levels of risk and returns. Common equity holders participate in appreciation upon the sale of assets, with cash flow distributions taking place only once the assets’ operations and financing are fully stabilized. They are the last to be paid in any payout scenario and generally have the highest level of risk, but also a higher return. Preferred equity holders are structured to receive distributions ahead of common equity, generally with fixed returns paid before any distributions to common equity holders. The primary difference lies in risk and payout priority, with common equity carrying higher risk with potentially higher reward and preferred equity offering more security and stable income but lower overall return. BAM Capital offers investors Series B (common equity) share options when investing in one of its funds. Series B shares offer higher capital appreciation advantages on the back end.

Is a fund like a REIT?

A fund is not a REIT (Real Estate Investment Trust). When you invest with BAM Capital in a fund, you partner in the physical properties. You get the advantages of owning that building, the tax advantages, the cash flow, and the upside.

What are the benefits of a fund structure?

The primary benefit of a fund is diversification. The investor instantly joins a fund diversified across multiple assets. At BAM Capital, a fund portfolio can contain as few as four and as many as eight separate investments across a broad geographic area, which helps reduce risk.  Strong-performing properties can help balance out the impact of those that may perform below expectations, offering a more stable and resilient investment experience overall.

What are the benefits of a single asset?

Two benefits of single-asset offerings are the possibility of a shorter timeline for receiving distributions and investors’ control in determining the asset into which their investment goes. Single-asset investments are often considered a first step for a beginner investor before moving on to a fund. For example, as one of the firm’s single-asset development deals, the Crossing 5 Towns and Flats project allows BAM Capital investors rare access to an institutional-grade development project in a prime location with solid base fundamentals that align with BAM Capital’s disciplined investment strategy. 

What is the target hold period and return at BAM Capital?

Crossing 5 Towns & Flats is a joint venture ground-up development project with J.C. Hart that brings a premier garden-style asset to Plainfield, Indiana, with a targeted return of 20-23% IRR and 1.9x-2.3x equity multiple in 3-4 years.

The BAM Preferred Credit Fund is an evergreen fund that reflects our dedication to providing income-producing investment opportunities. This fund offers an 8% preferred return that can be reinvested monthly or distributed to achieve a targeted return of 12% while ensuring a strong focus on principal preservation.

Learn more about BAM Capital’s current offerings.

Can I do a 1031 exchange into a fund?

A traditional 1031 exchange has strict requirements around investment structure type, which makes it incompatible with a fund investment into one of our partnerships. However, the losses you receive as a member of one of our growth funds can potentially offset the gains you may have from selling your asset. So, while you cannot technically do a 1031 with BAM Capital, you may be able to achieve a similar effect and reduce your tax liability/obligation. Consult your CPA for guidance on your portfolio’s suitability for this investment.

WORK WITH BAM CAPITAL FOR MULTIFAMILY PRIVATE PLACEMENT

BAM Capital partners with accredited investors who want to enjoy passive income and all the other benefits of multifamily private placement. As the private equity arm of The BAM Companies, BAM Capital has been focusing on buying assets targeted as having strong profitability potential and staying disciplined in its investment thesis. BAM Capital’s investment strategy aims to create forced appreciation while mitigating investor risk. To date, the brand has successfully managed over $1.7 billion in assets across ~9,000 apartment units.

For multifamily real estate insights, visit Pathways to Passive Wealth, BAM Capital’s new platform designed to make real estate investing more accessible, transparent, and achievable for aspiring and experienced investors.

Remember that no investment is risk-free. Before making financial decisions, consult your investment advisor and schedule a call with a BAM Capital investment team member.

Visit bamcapital.com/faq to explore additional FAQs regarding The BAM Companies and BAM Capital investing.

Disclaimer: All investments carry risk, including potential loss of capital. This content is for informational purposes only and is not financial, legal, or investment advice, nor an offer or solicitation to buy or sell any security. Consult an independent advisor for personalized guidance and contact BAM Capital for details on current offerings. BAM Capital and its representatives are not fiduciaries or investment advisors. The information provided is general and may not reflect individual financial goals. Any financial terms, projections, or forward-looking statements contained herein are hypothetical in nature and should not be interpreted as guarantees of future performance or safety. Such statements reflect BAM Capital’s opinion and are subject to market fluctuations, economic conditions, and investment risks. Past performance does not predict future results. BAM Capital and its affiliates do not guarantee the accuracy or completeness of this information. BAM Capital offers investment opportunities under Rule 506(c) of Regulation D exclusively for accredited investors as defined by the SEC. Verification of accredited investor status is required prior to participating in any investment.

© 2025 BAM Capital. All rights reserved.

SOURCES:

[1]: BAM Capital. (2025). “Frequently Asked Questions.” https://bamcapital.com/faq/