Are Real Estate Syndications Dead? w/Brian Burke and Scott Trench

On The Market

BiggerPockets

Investing, News, Education, Business

4.8 • 858 Ratings

🗓️ 30 September 2024

⏱️ 46 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Are real estate syndications dead? Some multifamily syndicators are making capital calls and hiding information from investors who anxiously wait (and pray) for their money to be returned. A lot is going wrong, so should you pause investing in real estate syndications for now, or should you write them off entirely? Brian Burke, who saw it coming and sold almost everything before prices fell, is on today to give us his answer. Joining him is a fellow syndication investor and BiggerPockets CEO, Scott Trench, who’s had his fair share of syndication headaches over the past few years. We’re going back in time, talking about what exactly went wrong for multifamily syndications, why we saw a rise in untrustworthy/inexperienced syndicators entering the market, and why multifamily specifically is taking the majority of the headwinds. We’re also sharing the numbers on the almost unbelievable amount of multifamily investors who have short-term loans coming due, all at a time when interest rates are still high and values are close to (if not at) the bottom. We’ll even talk about our own failed deals and whether or not we’d continue investing in syndications. In This Episode We Cover Real estate syndications, general partners, and limited partners explained Why the multifamily real estate market is a “traffic collision” in 2024 Areas of the country with the highest/lowest risk for real estate syndications The astonishing amount of distressed investors with short-term loans coming due Our own failed investments and whether we’d still invest in syndications When multifamily real estate investments could finally rebound and become investable again And So Much More! Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Find Investor-Friendly Lenders See Dave and Scott at BPCON2024 in Cancun! Dave's BiggerPockets Profile Scott's BiggerPockets Profile Multifamily Is at High Risk of Continuing Its Historic Crash in 2024—Here’s Why PassivePockets Brian's BiggerPockets Profile Grab Brian's Book, “The Hands-Off Investor” Jump to topic: 00:00 Intro 01:38 Real Estate Syndications Explained 11:11 Things Have Changed 19:07 Multifamily is a “Traffic Collision” 24:29 WHERE to Invest 29:20 Underwater Syndications 38:23 Are Syndications Dead? Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-256 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	For anyone looking to invest in real estate, the more passive options like investing in a syndication can be really appealing.
0:07.3	There are great returns and you pretty much don't have to do anything.
0:11.3	But in recent years, we've seen syndication returns diminish.
0:14.4	So today, we're diving into what's behind the trend and whether there are still good syndication deals to be found.
0:27.0	Hey, everyone, it's Dave.
0:28.2	Welcome to On the Market.
0:32.0	And we've got a super fun episode for you today.
0:36.0	We are joined by Brian Burke, who's a season multifamily investor.
0:38.7	He's been on this show many times, and he always offers very spirited and fun takes about the state of the multifamily market. And we have the
0:45.1	Bigger Pocket CEO, Scott Trench, who's also an active investor in syndications. He participates as an
0:51.9	LP, which I'll explain in a minute, in a lot of syndications
0:55.3	as do I. So we're going to have a really good discussion and debate about the topic are
1:01.2	syndications debt. And in this conversation, we're going to talk about the pretty rapidly
1:05.9	growing number of distress multifamily properties. We'll talk about how syndications arrived at this point
1:12.6	where there is distress in the first place. We'll talk about some regional variances and some
1:17.7	markets that have seen the worst multifamily returns. And we'll talk about ones that have held up
1:22.6	pretty well. Plus, we'll also be talking at the end about whether we're not we're still personally investing in syndications and how our current deals are performing.
1:31.6	So let's bring on Brian and Scott.
1:38.6	Brian Burke, welcome back to On the Market. Thanks for being here.
1:41.9	Thanks for having me here, Dave. It's great to be back.
1:44.1	Always enjoy your colorful commentary and honest commentary about the multifamily and syndication
1:50.0	market. Scott Trench, thanks for joining us as well. Thank you, Dave. Super excited to be here.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.