36. Recycling Your Capital to Beat Infinite Returns with Ivan Barratt

Ivan Barratt is a multifamily owner, manager, and syndicator who specializes in large apartment communities in the Midwest. Since 2015, he has raised nearly $150 million in equity and acquired over 5,000 multifamily units. Today, Ivan focuses his time on equity finance, acquisitions, and company strategy. His company, BAM Capital, manages nearly $593 million in syndicated assets. In this episode, Ivan discusses why he prefers multifamily apartments, why structuring debt effectively is critical and how a refinance with infinite returns might not be the best way to increase returns. Ivan talks about the strength of multifamily in the current market and the risks of both inflation and deflation. He discusses the difference in debt structures, the importance of properly structured bridge debt and efficient long-term debt. Ivan talks about the benefits of selling an asset rather than refinancing and why the infinite return model may be less effective than selling an asset and recycling the funds into a new deal. Ivan discusses why he prefers a fund model rather than an individual asset investment and why a fund is better for the sponsor and the investor. Ivan explains how to analyze a sponsor who is managing a fund and importance of finding a fit between investor and fund manager and if there is no fit. It’s ok for both parties to move on.  He also talks about the importance of referrals when analyzing a sponsor. Podcasts he recommends: Real Vision    To connect with Ivan, go to https://capital.thebamcompanies.com or call him at 317-762-2625. If you would like to contact Jim Pfeifer, you can email him at [email protected] or if you would like to find out more about Left Field Investors go to www.leftfieldinvestors.com.    Our sponsor, Tribevest provides the easiest way to form, fund, and manage your Investor Tribe with people you know like, and trust.  Tribevest is the Investor Tribe management platform of choice for Jim Pfeifer and the Left Field Investor's Community.    Tribevest is a strategic partner and sponsor of Passive Investing from Left Field.