Our special guest this week is the prolific investor Brian Burke.
We take a deep dive into how to become a super successful hands-off investor. Brian provides some fantastic free advice on how to set yourself up for success, avoiding those common passive pitfalls and how to work with amazing partners that are going to get you the returns you truly deserve.
Over the course of a real estate investment career that began in 1989, the offerings Brian manages have acquired over 750 properties, including over 3,000 multifamily units, with the assistance of proprietary software that he wrote himself. Acquired asset classes include single-family homes, self-storage, mixed-use and large apartment complexes in multiple states. Brian has arranged well over $500 million in debt and equity for Praxis acquisitions.
Don’t miss this incredible episode that gives you, or contributes to, your knowledge and experience of passive investing. Jump in and join the Investor Mindset community!
- One of the first things to learn: how to look at a sponsor and know if they’re going to be successful in carrying out the business plan.
- Look at their track record, full cycle experience, general experience and team.
- Analyze if the investment is suitable for your goals.
- Make sure the sponsor’s business plan makes sense. Example: don’t invest in a new hotel building during a COVID crisis!
- It’s vital that before you sign on the dotted line you check all the offering documents to make sure there are no hidden “gotcha” terms such as high fees and bad profit splits.
- Look at the fee structures that the sponsors are charging such as the asset management fee: it’s 1%… of what?
- Passive investing is only passive AFTER you’ve invested the money. Before that you should be working hard to find excellent partners and deals.
- Quarterly reports: look to see if the sponsor is hiding bad debt on the balance sheet.
- Diversify your portfolio.