Financial advising is an expansive practice with numerous subcategories, tailored to meet your specific financial needs. While the services offered by financial advisors can vary, they often include comprehensive financial planning, investment advice, retirement planning, tax planning, estate planning, and other guidance. High-net-worth (HNW) clients typically receive personalized advice aligned with their investment goals.

With $1 million or more in liquid assets, high-net-worth (HNW) individuals can significantly shape broader economic trends. They are often the first to recognize and establish new investment patterns, making investment management particularly important for HNW individuals. This is why they are often the target audience for financial institutions, wealth management firms, and financial advisors. HNW individuals have the financial capacity to invest in various asset classes, including real estate and private equity.

Here, we will discuss how fee-only financial advisors can offer guidance to high-net-worth (HNW) individuals in multifamily real estate investing.

TYPES OF FINANCIAL PROFESSIONALS

HNW individuals often work with a team of finance professionals, each with a specific role. Two of the most common are a Certified Financial Planner (CFP) and a Certified Public Accountant (CPA). CFPs are certified professionals trained in estate, investment, retirement, tax, and insurance planning and can offer specialized financial advice. [1][2]

CPAs focus on tax return preparation and tax planning. They must pass an accounting exam and have substantial experience in the field. [1][2]

Financial advisors typically fall into two groups: fee-only and commission-based. When seeking financial planning services, this is one factor that individuals typically consider, especially when looking for investment advice. 

The compensation method may influence the financial advice that financial advisors give to their clients. Although real estate is considered a potentially lucrative investment vehicle, some advisors may be less inclined to recommend it if it doesn’t contribute to their compensation. Even well-intentioned advisors can be influenced, consciously or not, by how they’re paid. Fee-only financial advisors do not solely rely on commissions, mitigating a conflict of interest.

A fee-only financial advisor is paid a set rate for their services. This is the opposite of a commission-based financial advisor who earns through commissions on the products that they sell or trade. [3]

There are numerous benefits to working with an advisor who is compensated solely by the fees they charge. They generally offer transparency, no hidden charges, and no conflicts of interest. The downside is that fee-only advisors tend to be more expensive. However, many see this as a worthwhile investment for objective, personalized financial guidance. 

Some financial advisors who use flat fees as their compensation method charge hourly or monthly rates. Some also charge based on assets under management (AUM), meaning that if a client has, for example, $2 million in AUM, their fees are based on that amount. Please note that the exact cost will depend on the financial advisor’s preferred fee structure, experience level, and the specific service required. [5]

WHAT IS AN ACCREDITED INVESTOR?

There is a significant overlap between high-net-worth (HNW) individuals and accredited investors, as many HNW individuals meet the financial criteria to qualify as accredited investors, thereby gaining access to exclusive investment opportunities. [6]

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. According to the SEC, an accredited investor can also be a general partner, executive officer, or director of the company issuing the unregistered securities.

Many offerings restricted by federal securities laws are only accessible to accredited investors. Non-accredited investors may be prohibited by the SEC from participating in these securities because of their perceived risky nature or high cost of entry. [4]

Because accredited investors meet specific financial criteria, they are deemed to have the knowledge and experience to participate in certain investment opportunities that are not available to the general public. Many HNW clients look to their financial advisors to present these types of opportunities, which are available only to accredited investors, and help them understand how such an investment may fit into their overall financial strategy.

HNW INDIVIDUALS & MULTIFAMILY PRIVATE PLACEMENT

High-net-worth (HNW) individuals put their money into multifamily investments for several reasons, primarily because they might be fatigued by the unpredictable nature of other markets. Multifamily real estate offers a more evolved approach to gaining control over investments, compared to public markets, and the ability to grow wealth.

High-net-worth individuals can actively invest in multifamily by purchasing properties and hiring a property manager to handle the day-to-day operations. However, there is another option that is highly appealing to accredited investors, particularly HNW individuals: multifamily private placement.

A private placement deal is when multiple investors pool their resources for real estate investing. This can be done with almost any real estate property, but multifamily private placements are the most popular because these properties can generate monthly income. However, multifamily properties can be expensive, making them more challenging for individual investors to acquire.  Exclusivity can also limit the pool of potential investors in private placements. Private placements are typically available only to accredited investors. 

Multifamily private placement addresses the issue of direct ownership by offering passive investors all the benefits of multifamily investment properties, without the hassle and physical labor of managing these multifamily homes or communities. 

HOW FEE-ONLY FINANCIAL ADVISORS CAN GUIDE HNW CLIENTS

Multifamily real estate private placement could be a viable option for high-net-worth (HNW) individuals due to factors such as diversification, passive income, cash flow, tax advantages, and the potential for long-term appreciation.

Fee-only financial advisors play a crucial role in assessing the suitability of multifamily real estate investments for their HNW clients and ensuring they align with their overall financial goals and risk tolerance. By providing their expertise and comprehensive financial guidance, they can help clients navigate the complexities of real estate investment and make informed decisions. They will assess the client’s financial situation, including their income, expenses, assets, and liabilities, to determine how real estate investment fits into their portfolio.

By leveraging their expertise in financial planning, investment analysis, and risk management, fee-only financial advisors can guide HNW clients into multifamily investing, focusing on long-term growth and wealth preservation.

WORK WITH BAM CAPITAL FOR MULTIFAMILY PRIVATE PLACEMENT DEALS

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.

Remember that no investment is without risk. Before making financial decisions, consult your investment advisor and schedule a call with a BAM Capital investment team member.

For additional 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.

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]: Investopedia. (2025). “What Does a Financial Advisor Do?” https://www.investopedia.com/articles/personal-finance/050815/what-do-financial-advisers-do.asp 

[2]: CFP Board of Standards, Inc. (n.d.). “Types of Advisors.” https://www.letsmakeaplan.org/choosing-a-planner/types-of-advisors 

[3]: Investopedia. (2024). “What You Need to Know About Fee-Only Financial Advisors.” https://www.investopedia.com/articles/investing/102014/feeonly-financial-advisers-what-you-need-know.asp

[4]: Mercer Advisors. (2024). “Why High-Net-Worth Individuals Need Specialized Wealth Advisors.” https://www.merceradvisors.com/insights/taxes/defining-high-net-worth-2/#:~:text=Clients%20with%20assets%20between%20%245,individuals%20need%20specialized%20wealth%20advisors%3F 

[5]: SmartAsset. (2024). “What Is a Fee-Only Financial Planner?” https://smartasset.com/financial-advisor/fee-only-financial-planner

[6]: Google Generative AI. (2025). “Is there overlap between HNW individuals and accredited investors?” https://www.google.com/search?q=is+there+overlap+between+hnw+individuals+and+accredited+investors

[7]: BAM Capital. (2025). “Current Portfolio.” https://bamcapital.com/