All Forum Posts by: Bobby Shell

Fund 1's business plan was to do a light renovation and add management efficiency to achieve the target return. 

My understanding is that the company sees higher return possible if more significant renovations can be done. Either you make an additional capital call from the existing fund 1, sell the property or recapitalize.

BAM fund 1 is selling the assets to the next BAM fund 3 investors to implement the new business plan. Since it's been less than 2.5 years since fund 1 started, the company decided to use the proceed (2x EM) to continue the original business plan (add management efficiency and light renovation).

 Everyone should watch this youtube url: /watch?v=M-8AAPs3F-0

Basically, it was super easy to increase NOI especially thanks to covid, and MASSIVE money printing and cheap debt. Companies like Rise 48 do this but sell to someone else..... they only rehab like 25% of the apartments, LEAVE THE REST NOT REHABBED so the next person can add value.

Since they hit investor return hurdles, they can still do the same thing in the next fund and it increases returns overall for investors. 

Let's just pray interest rates over the next 5-7 years do not go insane so that future buyers can't buy them. But hey that is the risk of investing.

I watched the webinar today. They described Fund I as the "Lipstick" light value add. Now they want to do a semi major reno that you described, mostly kitchens and flooring. It seems like it would work especially given the housing situation, or lack of... I'm still on the fence though. If I do it, I think it will be class A shares only.

BAM Capital just opened Fund 3. Is anyone thinking of investing in it? I took a look at it today. This would be my first syndication with BAM so any feedback on them and the syndications would be much appreciated.

 Bobby- I'd love to hear an update on your investments.  Also, for the taxes did you have to file state tax returns in all the states where there are mobile home parks that is for the ODC fund?