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

Episode • Apr 16, 2020 • 1h 34m

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

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