DiscoverBiggerPockets Real Estate Podcast378: A $500M Syndicator's View on Today's Market and How to Succeed as a "Hands-Off Investor" with Brian Burke
378: A $500M Syndicator's View on Today's Market and How to Succeed as a "Hands-Off Investor" with Brian Burke

378: A $500M Syndicator's View on Today's Market and How to Succeed as a "Hands-Off Investor" with Brian Burke

Update: 2020-04-1610
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With a recession already underway, we're turning to an investor with 30 years of experience, 3,000-plus multifamily units acquired, and one of the sharpest minds in real estate.

Brian Burke is back today, and he sits down with Brandon and David to offer his interpretation of current events and to guide our audience through how to invest passively without violating Warren Buffett's No. 1 rule: "Never Lose Money!"

Brian explains how his firm Praxis Capital is navigating COVID-19 and shares a few tips everyday investors can use to fortify their portfolios. We also discuss leverage, how lending practices are changing, and techniques you can use today to safeguard your investments against vacancy and drops in valuation.

In the second half of the show, Brian speaks to those interested in becoming "hands-off" investors—whether you want to focus on making money in your day job or just don't want to deal with being a landlord. After all, BiggerPockets has 10-plus books on how to actively get deals done... but none (until now) on how to evaluate passive investment opportunities.

We go over how to meet syndicators, what red flags to look for, how to diversify your investments... and the absolute No. 1 quality to look for in a passive investment (hint: it's NOT the deal itself).

This episode is packed with deep insights into the current market shift, but it's also a timeless lesson in evaluating syndication opportunities.

For more info, check out Brian's new book, The Hands-Off Investor: An Insider's Guide to Investing in Passive Real Estate Syndications, and all the great bonus content, too.

In This Episode We Cover:

  • How Brian got his start raising capital from his cop buddies
  • "Bulletproof vests" investors can use to survive right now
  • Brian's definition of "over-leveraged"
  • Why Brian is currently more focused on operations than acquisitions
  • How government stimulus $ may affect the real estate market
  • How and where passive investors meet syndicators
  • The #1 quality passive investors should look for in a syndicator
  • Why the deal sponsor is more important than the deal itself
  • Diversifying your passive investment portfolio
  • Red flags to look for when evaluating syndicators
  • Why "alignment of interests" is overrated
  • The lesson he learned from a friend who lost her life savings

Links from the Show

Check the full show notes here: http://biggerpockets.com/show378

Comments (1)

creative group

Seasoned Real Estate Investors understand that caution is what is required. If you have the financing to purchase great buys reevaluate the deal and seek a reduction. (Amount of reduction is up to your deal) If not pull back offer and wait it out. This is a very unknown territory for everyone. Freeze when there are dramatic changes. Multi-Unit properties are more shielded with tenants who may be essential workers. First responders, Doctors & Nurses.

Apr 20th
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378: A $500M Syndicator's View on Today's Market and How to Succeed as a "Hands-Off Investor" with Brian Burke

378: A $500M Syndicator's View on Today's Market and How to Succeed as a "Hands-Off Investor" with Brian Burke