EP 203: Randy Smith with Brian Burke - The Darker Side to Passive Investing

The Gentle Art of Crushing It!

Brian Burke is President / CEO of Praxis Capital Inc, a vertically integrated real estate private equity investment firm, which he founded in 2001.

Brian has acquired over 800 million dollars’ worth of real estate over a 35-year career including over 4,000 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 public speaker at real estate conferences and events nationwide.

www.PraxCap.com

www.linkedin.com/company/praxcap

www.linkedin.com/in/praxiscapital

https://www.facebook.com/praxcap/

https://twitter.com/praxcap

https://www.instagram.com/praxcap/

https://www.instagram.com/investorbrianburke

Book: www.BiggerPockets.com/SyndicationBook

Summary

Brian Burke, president and CEO of Praxis Capital, shares his insights on real estate investing and market cycles. He discusses his decision to sell off properties in 2021 and 2022, just before the market peaked, and explains the importance of recognizing market trends and investor behavior. Burke emphasizes the need for sellers to become fearful before a market bottom can be reached. He also provides advice for passive investors who may be experiencing challenges with their investments, including the importance of communication and due diligence.

Takeaways

1. Recognize market trends and investor behavior to make informed decisions in real estate investing.

2. Sellers becoming fearful is a sign of a market top, while sellers becoming fearful indicates a market bottom.

3. Communication is key for passive investors facing challenges with their investments.

4. Due diligence is crucial when evaluating alternative investments.

5. Invest with experienced sponsors who have successfully navigated market cycles.

Titles

1. Advice for Passive Investors Facing Challenges

2. The Role of Communication in Passive Investing

Sound Bites

1. "Be fearful when others are greedy and greedy when others are fearful."

2. "When sellers become fearful, that's when you've reached a market bottom."

3. "Recognize what's going on with your investment and rule out any fraud or scam."

Chapters

00:00Introduction and Brian Burke's Background

03:08Recognizing Market Tops and Bottoms

08:19The Importance of Fearful Sellers

25:04The Role of Communication and Due Diligence

28:30Investing with Experienced Sponsors

39:02Conclusion and Final Thoughts

RANDY SMITH

Connect with our host, Randy Smith, for more educational content or to discuss investment opportunities in the real estate syndication space at www.impactequity.net, https://www.linkedin.com/in/randallsmith or on Instagram at @randysmithinvestor

Keywords

real estate investing, market cycles, selling properties, market trends, investor behavior, passive investors, challenges, communication, due diligence