Real estate syndication, at its core, is a partnership. It involves multiple parties pooling their resources together to acquire an investment property. General partners (GPs) are responsible for executing the business plan, while limited partners (LPs) assume a passive role. By investing their capital, LPs collect a substantial part of the profits, often finding more success by partnering with experienced operators rather than using their personal time and energy to find, manage, and sell the investment alone.
In active management, it takes a team to execute the business plan. BAM Capital strives to be in the middle of the bell curve so that it is not fee-heavy and still has the resources to put an A-team on the field for the best chance to win. We set ourselves apart by handling administrative fees before investors receive their preferred return, meaning that all projected returns to investors are net of fees.
As the sponsor (GP), Founder and CEO Ivan Barratt and his partners put actual skin in the game across the capital and personal guarantees of their balance sheets against any debt.
Real estate can, as usual, provide tax advantages; investing in multifamily aims to amplify those advantages through accelerated depreciation and the ability to shelter cash flow. However, no investment is without risk. Consult an investment advisor or CPA and speak to a BAM Capital investment team member before making financial decisions.
Your liability is limited to the capital that you invest.
BAM Capital underwrites up to 200 assets to meet our strict performance criteria. This process gives us greater confidence in our ability to execute value-added strategies and drive strong returns. Investors can receive returns through consistent distributions (preferred equity) or by participating in the upside when an asset sells (common equity).
The preferred return is often a minimum rate of return that the limited partner (LP) receives before the general partner (GP) participates in any cash flow or profit on a given asset. Depending on the deal structure, preferred returns can be distributed monthly or accrued and paid out upon a capital event, such as a refinance or sale.
All assets are selected through rigorous underwriting, offering investors risk-adjusted returns and diversification. Still, no investment is without risk. Consult your investment advisor and speak to a BAM Capital investment team member before making final decisions.
In real estate syndications like ours, General Partner (GP) and Limited Partner (LP) are used as industry terms to describe the roles, responsibilities, and risk levels associated with each party in the investment. Not all projects are structured similarly; some may be structured as LLCs with members or partnerships with LPs and GPs. Using LPs and GPs as labels/industry terms helps investors understand the role distinction: the GP is responsible for managing the business and taking on more operational risk, while the LP typically acts as a passive investor, contributing capital and sharing in the profits. This terminology is widely understood in real estate investing and helps clarify each party’s role and relationship to the investment without implying a specific entity type/structure in each investment opportunity.
The lender/bank is our most significant partner in a real estate transaction. We are lucky to have a preferred relationship with a publicly traded national bank, giving us superior lending terms in the multifamily market.
The BAM Companies is an institutional multifamily real estate owner/operator operating three different brands under its umbrella:
Loyal + Loving Family: Being open and honest. Being understanding. Caring for each team member.
When People Grow, BAM Grows: Trusting the process. Fighting through trials and tribulations. The persistence to go above and beyond.
Fun + Quirky Spirit: Having an innovative spirit. March to the beat of our own drum.
Work Hard, Play Hard, WIN!: Taking professional responsibility. Celebrating team success.
Here are some of the many company events and activities our BAMily participates in throughout the year:
BAMily Reunion
BAMcon
Christmas Party
On-site Day
Volunteering Opportunities
Visit thebamcompanies.com to explore our open positions.
The BAM Companies was born in property management, which is a fundamental competitive advantage. Today, we have over 200 employees and are vertically integrated from the people on the ground to property management and the corporate team. This culture gives us a higher degree of confidence in executing our strategy. The BAM Companies invests in its people. Our leaders autonomously make decisions within their departments and execute the business plan. When asked about the culture of The BAM Companies, the first word that readily comes to mind is family. Here, we call it the BAMFam.
Multifamily is all about the ability to add value. Why? Because every dollar that we can bring to the bottom line (net operating income, or NOI) of an asset creates anywhere from a 17 to 20 multiple when it’s time to sell. This multiplier effect is why value-add strategies are essential in multifamily. Even small increases in NOI can increase the property’s value when it’s time to sell.
BAM Capital prioritizes market fundamentals, which means attainable institutional-quality Class A multifamily assets in secondary or tertiary regions with in-place cash flow and proven upside potential. Historically, the Midwest, Mississippi Basin, and Great Lakes regions do not boom or bust. In Indianapolis, for example, rent growth has been 2.9% for almost 40 years. It is the tortoise versus the hare theory of investing.
Our team works tirelessly to navigate market volatility in the capital markets and the competitive real estate landscape. We operate with high expectations of continuing to outperform on behalf of our investors through value-added strategies such as operational expertise and managerial efficiencies. We will not acquire assets dependent on an interest rate environment or whose success is predicated on things we cannot control. Through uncertainty and volatility, we focus on expertly operating institutional quality assets in exceptional locations.
No. BAM Capital exercises due diligence with our most significant partner, a publicly traded national bank. Borrowers of private lenders may face higher interest rates than traditional loans, which can increase the overall cost of borrowing.
No. We specialize in acquiring and managing institutional-quality multifamily communities. As a vertically integrated owner/operator, we have more direct control over asset performance than other real estate sponsors and asset managers. The BRRRR strategy is generally most relevant to individuals or small groups of partners looking to focus on single-family homes or small duplex or triplex properties. Therefore, the BRRRR strategy is inapplicable to our current institutional goals.
We focus on long-term capital growth with tax advantages through joint ventures and multifamily funds. We aim to balance cash flow, capital preservation, and capital appreciation while providing risk-adjusted returns in private markets. For example, our Preferred Credit Fund is semi-liquid and tax-efficient, with a minimum investment of $250,000. It’s securitized with institutional assets and offers a redemption option.
At The BAM Companies, we utilize our team’s talents to execute tailored impacts in Indianapolis and other communities in which we operate. We seek partnerships in these communities through organizations that align with our company’s and our teams’ core values.
Our continuous objective is to focus our energies on Firefly Children & Family Alliance in Indianapolis as they look for opportunities to improve the lives of their clients at the family level, a value the BAMily can stand behind. We accomplish this through event sponsorship, employee volunteerism, funds for improvement to aid the Rachel Glick Courage Center and Children’s Shelter, child abuse prevention, and adoption and domestic violence services.
We have implemented sustainability practices such as green fixtures, low-flow toilets, water-efficient faucets, and more at the property level. Internally, The BAM Companies includes a robust sexual harassment and fair housing training seminar for all employees, regardless of experience or expertise, to ensure equal housing opportunities and eliminate discrimination. Similarly, we have built an in-house committee system for various initiatives, including DEI and philanthropy, to craft new opportunities and fortify our efforts.
BAM Capital loves the suburbs. We avoid the urban core while targeting secondary or tertiary markets with workforce housing and Class A assets.
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.
No. The properties are not cross-collateralized. Each asset is a special purpose entity (SPE) and possesses (individual) debt.
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.
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.
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.
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 little 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.
Two benefits of single-asset offerings are the possibility of a shorter timeline for receiving distributions and investors’ control in determining the asset their investment goes into. 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.
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.
Investors can allocate and increase their position size at any point while the fund is still open.
Entering the fund earlier means the preferred return clock starts ticking for you earlier. Joining later means missing out on that preferred return window. On the exit of the property, your percentage return might look higher, but your multiple (your dollars going in versus dollars coming out) will be slightly less due to that loss of preferred return.
With the exclusion of the BAM Preferred Credit Fund, the capital you invest in our offerings should come from your long-term, illiquid portfolio portion. For more on this product and its redemption options, please visit: https://bamcapital.com/credit/. While our private placement memorandums (PPMs) have a provision for early withdrawals under certain limited circumstances, these are rare, and you should expect some level of discounted returns if you request to exit early. Investors should expect to remain in the investment for its duration.
The asset often receives a stepped-up basis or its market value when the benefactor dies. Due to the federal estate tax exemption, the investment may transfer (tax-free) along with the decedent’s other assets. Many investors elect to invest through their trust or other entity. At BAM Capital, the third-party entity’s governing document on file lays out what happens in the event of a death and will determine finalities with the deceased’s representative. If you are a current member, please refer to the operating agreement you received during the execution of your investment.
Contact Vicki Johnson, Vice President of Marketing, at [email protected] with any press inquiries.
Schedule a call with BAM Capital and invest today if you’re an accredited investor who wants to enjoy passive investing and all the benefits of being in multifamily syndication.
BAM Capital’s year-end is the end of the calendar year.
Investors get one K-1 package for each investment. If they have invested in multiple share classes within the same investment, they’ll receive a separate K-1 for each class they invested in.
Yes. Many retirement accounts can be self-directed or rolled into a self-directed IRA. If you seek to invest with retirement funds, BAM Capital can help walk you through the process as we work with and are approved by many nationally known SDIRA custodians. We recommend you work with your financial advisor or CPA to understand how investing with retirement funds affects your personal tax situation.
Investors at BAM Capital have access to industry-leading technology. Our investor portal provides 24/7/365 access to quarterly reports, the accounting for distributions and capital events, and a repository of tax documents. In addition to the portal, we have an impressive in-house investor relations team ready to hop on the phone and respond to an email or text.
An accredited investor is an individual with an annual income of at least $200,000 (or $300,000 for joint income) or a net worth of at least $1 million (for both individual and joint net worth), excluding the value of their primary residence. BAM Capital only accepts contributions from accredited investors according to SEC guidelines. Despite the rigid criteria for becoming an accredited investor, there is no federal verification process that investors must go through to become accredited. The burden of proving that an investor is qualified for specific securities offerings falls on the investment vehicle. The company offering the securities will have to verify the status of prospective investors before allowing them to invest. BAM Capital confirms accreditation as defined in Rule 501(a) of the Securities Act (income-based, net-worth-based, and third-party verification).
A qualified purchaser, also known as a qualified investor, is an individual or entity with an investment portfolio valued at over $5 million or $25 million, respectively.
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