25 min

WS1549: Capital Raising During a Recession | Ivan Barratt The Real Estate Syndication Show

    • Investing

Recession is inevitable. It is part of any economic cycle. Thus, as a real estate entrepreneur, one needs to be prepared for possible downturns including recession. In the second episode of our three-part series with Ivan Barratt of the BAM Companies, he takes a deeper dive into ways that you can raise capital amidst a recession.
Ivan says some ways you can secure capital is by having repeat investors, securing referrals, and adding value to others. He also emphasizes the importance of education, using different channels to market, and vetting the team first before looking at the deal. He then explains why operations are going to be critical moving forward. Enjoy the show!

Key Points From This Episode: 
Ivan discusses the strategies he used to raise capital even amid a recession.Why is it important to double down on education?The obstacles that new syndicators may face.Ivan says the more you do well in this business and the more you show returns, that could be an advantage for you and your investors.Ivan elaborates on ways in which an operator can raise capital.Ivan shares that he started as a door-to-door salesman.Why adding value to others can help you with your business?How did Ivan utilize Bigger Pockets?What’s the focus of Ivan’s marketing right now?Ivan shares they are using Copper as their CRM tool right now.What should passive investors look for in a deal to make sure that it is prepared for any downturn?
Tweetables:
“I’ll say that this year with the market volatility, certainly the air coming out of a lot of speculative assets, crypto stock market, the housing market is certainly correcting, especially in some of the red hot post-Covid markets where prices swung way off the mean.”
“So you're starting to get into smaller family offices and some pretty successful families, you're seeing more allocation to real estate there. So, how that translates into strategy is finding good deals that those investors are going to get to like to see inside our funds. We don't do single assets very often anymore, we typically raised in a fund format which some of those larger investors really want.”
“We've really doubled down on education, from an investment standpoint to our investors.”
“The more you do well in this business, and the more you show returns, and communicate and respond quickly and show transparency, the more that momentum builds.”
“Taking care of clients, clients tend to refer you to their friends, and that can grow.”
“We're seeing now this flight to quality and investments where you really got to understand the investments you're getting into. The downside as much as the upside.”
“I look at the team and the track record. I bet on management teams and sponsors before I look at the deal.”
“Operations are going to be critical moving forward.”

Links Mentioned in Today’s Episode:
Ivan Barratt on LinkedIn
The Bam Companies' website
WS1548: How to Start A Multifamily Business | Ivan Barratt
Bigger Pockets

About Ivan Barratt
Ivan Barratt is a multifamily owner, manager, and syndicator specializing in large apartment communities in the Midwest. Since 2015, Ivan Barratt has raised nearly $250 million in equity, acquired over 5,900 units, and grown the BAM Companies to a best-in-class, four-time Inc5000, private equity, and management firm.

Today, Ivan focuses on equity finance, acquisitions, and company strategy. Currently, his company manages nearly $700 million in syndicated assets.

Recession is inevitable. It is part of any economic cycle. Thus, as a real estate entrepreneur, one needs to be prepared for possible downturns including recession. In the second episode of our three-part series with Ivan Barratt of the BAM Companies, he takes a deeper dive into ways that you can raise capital amidst a recession.
Ivan says some ways you can secure capital is by having repeat investors, securing referrals, and adding value to others. He also emphasizes the importance of education, using different channels to market, and vetting the team first before looking at the deal. He then explains why operations are going to be critical moving forward. Enjoy the show!

Key Points From This Episode: 
Ivan discusses the strategies he used to raise capital even amid a recession.Why is it important to double down on education?The obstacles that new syndicators may face.Ivan says the more you do well in this business and the more you show returns, that could be an advantage for you and your investors.Ivan elaborates on ways in which an operator can raise capital.Ivan shares that he started as a door-to-door salesman.Why adding value to others can help you with your business?How did Ivan utilize Bigger Pockets?What’s the focus of Ivan’s marketing right now?Ivan shares they are using Copper as their CRM tool right now.What should passive investors look for in a deal to make sure that it is prepared for any downturn?
Tweetables:
“I’ll say that this year with the market volatility, certainly the air coming out of a lot of speculative assets, crypto stock market, the housing market is certainly correcting, especially in some of the red hot post-Covid markets where prices swung way off the mean.”
“So you're starting to get into smaller family offices and some pretty successful families, you're seeing more allocation to real estate there. So, how that translates into strategy is finding good deals that those investors are going to get to like to see inside our funds. We don't do single assets very often anymore, we typically raised in a fund format which some of those larger investors really want.”
“We've really doubled down on education, from an investment standpoint to our investors.”
“The more you do well in this business, and the more you show returns, and communicate and respond quickly and show transparency, the more that momentum builds.”
“Taking care of clients, clients tend to refer you to their friends, and that can grow.”
“We're seeing now this flight to quality and investments where you really got to understand the investments you're getting into. The downside as much as the upside.”
“I look at the team and the track record. I bet on management teams and sponsors before I look at the deal.”
“Operations are going to be critical moving forward.”

Links Mentioned in Today’s Episode:
Ivan Barratt on LinkedIn
The Bam Companies' website
WS1548: How to Start A Multifamily Business | Ivan Barratt
Bigger Pockets

About Ivan Barratt
Ivan Barratt is a multifamily owner, manager, and syndicator specializing in large apartment communities in the Midwest. Since 2015, Ivan Barratt has raised nearly $250 million in equity, acquired over 5,900 units, and grown the BAM Companies to a best-in-class, four-time Inc5000, private equity, and management firm.

Today, Ivan focuses on equity finance, acquisitions, and company strategy. Currently, his company manages nearly $700 million in syndicated assets.

25 min