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. 

Get details on RealCrowd offerings

Photo courtesy of RealCrowd

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