BAM founder and CEO, Ivan Barratt, recently sat down with The Real Estate Syndication Show host Whitney Sewell to talk about his experience, process, and the road to building a $200 million portfolio. We share some interesting take-aways in case you missed it, in today’s BAM Blog…
If you missed the podcast, and have time to catch the full episode, listen here. Otherwise, here are some tips, pointers, and food for thought from Ivan himself:
- Ivan started BAM after the ’08 crash and realizing he needed to get back to the essentials of cash flow.
- Ivan received his real estate license, and started selling real estate to help begin his business. He did anything at the time to “keep the lights on.”
- Early on, he figured out how to use hard money, now called the BRRR method to buy troubled assets. His first big deal was six units, then up to 35, and kept growing.
- Initially, Ivan had more management clients than property he owned; today BAM has almost-80 employees, about $300 million assets under management, and 2,400 units owned with partner in syndication format.
- Ivan’s time is now largely spent raising capital and working on BAM’s strategy.
- When people ask about syndication, Ivan talks about starting small and refers to Dave Lindahl. One big lesson Ivan took was “start where you’re comfortable.” Ivan says find the next step, even if it’s small.
- To get to where he is and do what he wants to do, he had to work hard 24/7. Ivan talks about the Grant Cardone “10x rule” – that it will take 10 times more work than you expect.
- Raising capital is a sales game. Ivan still listens to sales training and stresses to talk to people and gain practice with your sales pitch.
- Ivan recommends Grant Cardone’s sales courses (rather than his YouTube). Ivan also recommends his books and spending some time every day on self-improvement.
- Taking care of your investors will result in referrals, so be sure to do what you say you’ll do. Set goals initially to make calls, meet people, and network.
- Stay in touch with your investors; find a way to relate, whether it’s your background, hobbies, family, etc and develop a business-friendship. Ivan also refers to a line in the Godfather, remarking that “bad news should be heard right away.” Be sure and be transparent, even when it isn’t great news. Ivan is always sure to send gifts at the holidays, be accessible to investors, and also have office support for them.
- In team building, Ivan sees his role as CEO to find the best people and give them tools and support so they will succeed, and not have to rely on him for every decision.
- Ivan recommends looking at B+ assets at this point in the cycle. If you can lock in the downside risk on a newer, nicer deal, there’s more demand for that.
- Hard parts of syndication for Ivan are managing people and finding good deals; but it’s also important to remember that these things are supposed to be hard.
- Big game changer? Ivan suggests using an internal communication tool like Slack, to avoid constant emails.
- Upcoming news: Ivan says BAM is launching a $50 million fund in about a month to help take larger, better deals.
Want more insider info from Ivan himself? Head over to ivanbarratteducation.com. You’ll find a free library filled with articles and videos featuring Ivan and his experience, advice, and tips.