When exploring multifamily investments through private placements, investors may wonder how their financial advisor fits into the equation. 

While the sponsor plays a central role in executing the real estate investment, a financial advisor can offer guidance within the broader context of an individual’s overall financial plan. 

Although they do not manage real estate, financial advisors can help ensure that investments align with investors’ goals, risk profiles, liquidity needs, and tax strategies. 

In this article, we will discuss the role of financial advisors in multifamily real estate and how they can be valuable resources and sounding boards as investors evaluate opportunities and incorporate passive investments into their portfolios.

TYPES OF ADVISORS

While it may be evident that a financial advisor is a professional who advises individuals on their finances, the characteristics of their role become more nuanced the further they travel. Some advisors have specialized credentials, while others may offer limited services. Generally speaking, a financial advisor provides financial planning and risk management strategies to maximize their clients’ returns while offering guidance on investing. Financial advising is a broad practice with many subcategories, depending on one’s needs. 

Registered Investment Advisor (RIA) 

An RIA is a person or firm that upholds fiduciary obligations to clients. Since RIAs must register with the Securities and Exchange Commission (SEC), they must legally act in their clients’ best financial interests. [1] RIAs manage entire investment portfolios and expertly advise their clients on financial matters.

Certified Financial Planner (CFP) 

CFPs are certified professionals trained in estate, investment, retirement, tax, and insurance planning and can offer specialized financial advice. [2][3] They can help evaluate where real estate fits in the overall plan, but typically do not offer real estate investment products directly.

Certified Public Accountant (CPA)

CPAs focus on tax return preparation and tax planning. They must pass an accounting exam and have substantial experience in the field. [2][3] It’s important to note that not all CPAs are proactive planners outside of taxes. Some CPAs’ scope is limited to filing returns, so working with a CPA focused on strategy would be ideal. 

Underneath the umbrella of just a few financial advising categories we’ve discussed, there are many subcategories, including wealth manager, asset manager, financial coach, etc. 

Financial advisors typically have two compensation types: fee-only and fee-based. Fee-only advisors are paid exclusively by their clients through hourly rates, flat fees, or a percentage of assets under management (AUM). They do not receive commissions for selling financial products, which can help reduce potential conflicts of interest. Fee-based advisors can earn client fees and may also receive commissions from selling financial products like mutual funds or insurance. 

When looking for financial planning services, this is one of the factors that individuals consider, especially if they are looking for investment advice. The compensation method may influence the financial advice that advisors give their clients. For example, although real estate is considered a potentially lucrative investment vehicle, some fee-based or commission-based financial advisors may be less inclined to recommend it to their clients as they typically don’t generate commissions. Many financial advisors are fee-only, meaning they only receive compensation from clients’ fees, whether for investment management services or financial planning. Fee-only financial advisors do not solely rely on commissions, mitigating a conflict of interest. [2] A fee-only wealth advisor can create budgets, help you plan your retirement, pay down debt, and assist you in achieving your financial goals. It is their job to guide you toward your financial milestones. [2][4] 

Understanding the role of financial advisors in their various capacities is essential for one’s investment journey. Learning to differentiate between finance professionals will ensure that your goals are being met and that aspects of investing you hadn’t previously considered are being discussed. Much like with a sponsor, verify the credentials of your financial advisor, including whether or not they are held to any fiduciary standards, before allowing them to influence your investment decisions. [2]

WORK WITH BAM CAPITAL FOR MULTIFAMILY REAL ESTATE INVESTING

BAM Capital is a vertically integrated owner/operator that 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 the most profitable assets 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 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]: BAM Capital. (2025). “Closing the advisory gap: Examining RIA partnerships with Lara Compton, CIMA (Interview).”

[2]: BAM Capital. (2023). “How flat-fee financial advisors can guide HNW clients.” https://bamcapital.com/flat-fee-financial-advisors-guide-hnw-clients/ 

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

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