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March 27, 2022

TLP09: How to Invest in Passive Real Estate Syndications with Brian Burke

TLP09: How to Invest in Passive Real Estate Syndications with Brian Burke

Episode 09: Show Notes

Our guest, Brian Burke, is President / CEO of Praxis Capital Inc, a vertically integrated real estate private equity investment firm. He is also the author of "The Hands-Off Investor: An Insider's Guide to Investing in Passive Real Estate Syndications." 

 

Brian begins by explaining the difference between being a passive investor and investing in passive real estate syndications. That's right, there is a huge difference between the two. Then he talks about the first thing that people usually ask and that is how to find the right deal to invest in. However, for Brian, that shouldn’t be the first step. Listen to find out the steps to properly invest. Brian also shares a powerful story of a friend who lost her entire life’s savings on a wrong investment. It inspired him to write his book to save others from this tragedy. Now, he sets out to teach passive investors how to properly think about their passive investing strategy, find the right investments to invest in and more importantly, how to find the right sponsors to invest with.

Key Points from This Episode:

  • Brian started as a house flipper.
  • Brian wrote the book, The Hands-Off Investor: An Insider's Guide to Investing in Passive Real Estate Syndications.
  • Brian thinks that investors were asking all the wrong questions.
  • He finds that there are no available resources for investors where they can learn how to invest passively.
  • He wants to teach passive investors how to invest properly and find sponsors.
  • He also shares investing strategies in his book.
  • Why does Brian think crowdfunding is one of the biggest mistakes in passive investment?
  • For him, there is a difference between a passive investor and one who invests in passive real estate syndications.
  • When investing in passive real estate syndications, you need to be active initially (doing due diligence, etc.) before becoming passive. 
  • Brian shares some steps on how to find the right partner or people to invest with.

Tweetables:

"You know, there's plenty of books out there that will teach you how to buy real estate for your own account. But there's nothing out there that really teaches you how to invest passively." [00:05:02]

"Syndications are meant to be passive. You're an investor, you have no control over the investment. But from the investor's point of view, it's anything but passive when you're in the selection process." [00:10:17]

"I would suggest to people to place less emphasis on how much money the sponsor's putting into the deal and more emphasis on that sponsor's track record, their experience, their diversification level, and all those other things. And not let that other stuff slide just because that sponsor's putting money into the deal." [21:13]

Links Mentioned in Today's Episode:

Brian Burke on LinkedIn

Praxis Capital website


About Brian Burke

Brian Burke is President / CEO of Praxis Capital Inc, a vertically integrated real estate private equity investment firm.

Brian has acquired over half a billion dollars' worth of real estate over a 30-year career including over 3,000 multifamily units and more than 700 single-family homes, with the assistance of proprietary software that he wrote himself. Brian has subdivided land, built homes, and constructed self-storage, but really prefers to reposition existing multifamily properties. 

Brian is the author of "The Hands-Off Investor: An Insider's Guide to Investing in Passive Real Estate Syndications" and is a frequent speaker at real estate investment forums and conferences across the country.