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

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 Recognize market trends and investor behavior to make informed decisions in real estate investing. Sellers becoming fearful is a sign of a market top, while sellers becoming fearful indicates a market bottom. Communication is key for passive investors facing challenges with their investments. Due diligence is crucial when evaluating alternative investments. Invest with experienced sponsors who have successfully navigated market cycles. Titles Advice for Passive Investors Facing Challenges The Role of Communication in Passive Investing Sound Bites "Be fearful when others are greedy and greedy when others are fearful." "When sellers become fearful, that's when you've reached a market bottom." "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