BAM Multifamily Growth & Income Fund III Series-A Offering On RealCrowd Targeting A 10% Cash Yield

The real estate crowdfunding platform RealCrowd launched an offering for a multifamily property equity fund focused on Indianapolis and the Midwest. 

Bam Capital has partnered with RealCrowd to offer investors the opportunity to invest in a $100 million multifamily, multi-property equity fund of Class A- to B+ assets. The investment firm is focusing on housing assets built after 2000 located in Indianapolis and other Midwest markets with strong economic demographics, consistent in-place cash flows and a housing supply and demand imbalance. 

According to Chief Investment Officer Tony Landa, the fund is a “$100 million private real estate fund that seeks to balance cash-flow stability, capital preservation and long-term appreciation while maintaining a low overall risk profile compared to alternative investments.”

The fund manager has opted for a multi-asset fund instead of a single asset in order to decrease risk through diversification, which will increase the likelihood of a higher overall return for investors. The group plans to implement a value-add strategy to each of these properties in the form of semi-major renovation and capital improvement programs. Bam Capital projects the upgrades to the facilities will allow for future rent increases, which will improve the prospect of higher returns for investors. 

• Minimum investment: $50,000
• Target internal rate of return (IRR): 10%
• Target equity multiple: 1.5x
• Target cash yield: 10%
• Target investment term: three to five years

BAM Capital is an Indianapolis-based real estate investment firm that boasts an impressive historic track record. Since the company’s inception in 2010, it’s retrieved an IRR of 33.5% and an equity multiple of 2.5 times for its investors. 

The company manages 6,000 apartments valued at more than $700 million. BAM has skin in the game, having over $300 million in invested equity. The firm’s track record includes having, “never missed a round payment, never made a capital call beyond initial investment and never lost limited partner’s capital.” BAM Capital hopes and projects this equity fund to follow precedent. 

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Photo courtesy of RealCrowd