A high-net-worth (HNW) individual has liquid assets above a specific figure. This term is used in the financial industry to classify people who are considered highly wealthy. Those classified as HNW individuals typically have at least $1 million in liquid financial assets or a seven-figure (or more) net worth. They usually have access to unique benefits and opportunities because of their high net worth. [1]
Many HNW individuals generally either come from affluent families that have built their wealth across generations or have built their wealth through business ownership, investing, or professional success. They tend to prefer long-term investing strategies over short-term ones because their goal is to maintain their wealth and grow it even further. These individuals are usually more comfortable with illiquid assets and investments. They also understand the importance of surviving periodic financial or economic crises. [2]
HNW individuals generally seek the assistance of financial professionals to manage their money. This is where family offices come in.
REAL ESTATE INVESTMENT VEHICLES FOR FAMILY OFFICES
Family offices are private firms that manage the wealth of high-net-worth and ultra-high-net-worth (UHNW) individuals, who typically have a net worth of $30 million or more. They provide many different services for affluent individuals or families. This includes budgeting, charitable giving, insurance, wealth transfer, and tax services. [3]
There are single-family offices and multifamily offices (MFOs). Single-family offices focus on one ultra-affluent family, while MFOs are more similar to traditional private wealth management practices and serve multiple clients.
These highly experienced professionals can handle investments for wealthy individuals and families. Since family offices consolidate operational risk and operational management into one channel, UHNW individuals can make better investment decisions that meet their family’s objectives. Some family offices focus on real estate investments, and for good reason.
WHY INVEST IN REAL ESTATE?
Real estate has historically been a favorable investment for family offices, as real estate provides a unique opportunity to maximize investment returns. Real estate properties, especially multifamily properties, can provide a steady and long-term source of income for HNW individuals. [4]
Real estate is a strategic way to accumulate wealth over time, offering reliable cash flow, capital growth, or both.
Another significant benefit of real estate investing is that it potentially has fewer downsides than other investments, meaning investors can strive to benefit from superior risk-adjusted returns. When executed properly, real estate investments also provide tax-deferring benefits. This makes real estate even more attractive for family offices. [4]
Finally, real estate investing also allows for portfolio diversification. Investors see it as a valuable diversifier because of its limited correlation with the equity market. Having a real estate property in your portfolio of diversified assets can lower portfolio volatility, which reduces risk and potentially provides higher returns.
WHAT IS REAL ESTATE PRIVATE PLACEMENT (SYNDICATION)?
Real estate private placement, also called syndication, is a partnership between several investors (LPs) and a general partner (GP), also known as the sponsor.
The sponsor is responsible for locating the investment property, underwriting the deal, completing due diligence, arranging the financing, building a business plan, and executing it. They then partner with investors seeking to participate in the syndication deal (LPs).
Limited partners (LPs) receive a share of the cash flow, profits, or both, depending on how the syndication is structured. Their role in the deal is to provide a portion of the capital needed to acquire the property. Then, depending on the deal structure, they can receive monthly or quarterly income distributions from the asset. They may also earn a share of the equity upon resale. However, every deal is different. The profit split should be detailed in the private placement memorandum (PPM) before investors decide to join the syndication.
Multifamily properties are generally more expensive than other real estate investments and require a high level of property management expertise to be profitable. This is where syndication comes in. Family offices can enter multifamily syndication without purchasing, owning, and operating a multifamily asset.
PASSIVE REAL ESTATE INCOME FOR HNW FAMILIES
This type of real estate investment may be ideal for family offices because HNW individuals are busy professionals who typically do not have the time to find the right assets in the right locations and then manage properties. In a private placement/syndication deal, the sponsor takes charge of the property on behalf of the investors. The sponsor may also hire a third-party organization for property management. The sponsor typically receives fees and/or a percentage of the “distributable cash” left after all the expenses and loan obligations have been paid.
The beauty of multifamily syndication is that investors can enjoy the benefits usually afforded to owners/operators, including potential tax benefits and appreciation.
WHY WORK WITH BAM CAPITAL FOR MULTIFAMILY PRIVATE PLACEMENT (SYNDICATION)?
BAM Capital works with family offices that want to try multifamily syndication because of its vertical integration model, which mitigates risk for investors.
BAM Capital has a strong Midwest focus and prioritizes Class A multifamily properties because it values low-risk investments for passive investors.
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’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. [5]
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.
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. (2024). “High-Net-Worth Individual (HNWI): Criteria and Example.” https://www.investopedia.com/terms/h/hnwi.asp
[2]: BNP Paribas Wealth Management. (n.d.). “Key trends and investment strategies for family offices.” https://wealthmanagement.bnpparibas/en/expert-voices/key-trends-investments-strategies-family-offices.html
[3]: Investopedia. (2024). “What Is a Family Office and Do You Need One?” https://www.investopedia.com/terms/f/family-offices.asp
[4]: FINTRX. (2019). “The Allure of Real Estate Investing for Family Offices.” https://www.fintrx.com/blog/the-allure-of-real-estate-investing-for-family-offices
[5]: BAM Capital. (n.d.). “Current Portfolio.” https://bamcapital.com/
