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

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 16 April 2020

⏱️ 100 minutes

🔗️ Recording | iTunes | RSS

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Summary

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 BiggerPockets Forums BiggerPockets Webinars BiggerPockets Business Podcast Real Estate Rookie Podcast BiggerPockets Money Podcast BiggerPockets Radio Podcast 003: Getting Started in Real Estate and Raising Money with Brian Burke BiggerPockets Podcast 076: Growing Your Real Estate Company Into a $30 Million Dollar Business with Brian Burke BiggerPockets Podcast 152: Building Wealth and Passive Income with Rental Properties with Ben Leybovich, Brian Burke, and Serge Shukhat BiggerPockets Podcast 315: How to Read Human Nature to Succeed in Life with Bestselling Author Robert Greene BiggerPockets BRRRR Guide BiggerPockets Bookstore Check the full show notes here: http://biggerpockets.com/show378 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is the BiggerPockets Podcast Show 378.
0:04.0	The most important, most critical factor in evaluating a
0:08.8	syndicator to invest with is their moral character. And that's also the hardest thing to quantify. I mean it's
0:15.8	really easy to see how many deals have they done or how many units they own but it's
0:20.4	really difficult to quantify someone's character but that really is what the whole thing comes down to.
0:26.3	You're listening to bigger pockets radio simplifying real estate for investors
0:31.4	large and small. If you're here looking to learn about real estate for investors large and small.
0:33.0	If you're here looking to learn about real estate investing,
0:36.0	without all the height, you're in the right place.
0:39.0	Stay tuned and be sure to join the millions of others
0:42.0	who have benefited from BiggerPockets.com.
0:45.2	Your home for real estate investing online.
0:49.0	What's going on everyone?
0:50.0	This is Brandon Turner, host of The BiggerPockets podcast with my co-host Mr David
0:55.5	drinking soda while trying to talk green what's up man not soda that's a zero
1:01.5	calorie energy drink those are still still bad. I'm going to get so much hate about I should. Zero calorie energy. Yeah.
1:07.1	Called it out. Terrible for you. Why don't you get like that fucking water? I'm doing like zero calorie and like no nothing in it because I don't think they have caffeine in them and I'm so
1:16.4	dedicated to giving a good performance on the podcast that I need to be caffeinated to be at my best
1:21.2	you could do it multiple people do and drink coffee. Just saying.
1:24.8	Oh but coffee just tastes disgusting man. I can't get that bitter coffee taste. I'm the
1:29.3	only cop I ever met that didn't like coffee. Yeah I had so I had to weed myself onto it like I didn't like coffee. Yeah, I had, so I had to wean myself onto it.
1:34.5	Like I didn't like it, but I forced myself
	...

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