069: How to Become a Hands-Off Investor with Brian Burke

A career in real estate may start small, but over the years, with thoughtful actions, it can lead to more significant opportunities. Scaling to the next level isn’t always easy, but it is definitely rewarding.

On this episode of Zen and the Art of Real Estate, Jonathan’s guest is Brian Burke, president and CEO of Praxis Capital, a vertically integrated real estate private equity investment firm. Brian is also the author of The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications. During his 30-year career, he’s acquired over $800 million in real estate.

Jonathan and Brian dive into Brian’s career in real estate, from purchasing foreclosures in the beginning to creating software for his real estate business and his shift to multifamily properties during the 2008 real estate crash. They also discuss why investors should diversify their asset classes, who Brian’s investors are, and why he almost gave up on his real estate career during the 2008 real estate crash. Finally, Brian explains the current disconnect between buyers and sellers when it comes to fair property sale prices.

With more than 30 years in real estate investing, Brian Burke’s unmatched knowledge and experience make this a can’t-miss episode.

In this episode, you will hear:

Brian Burke’s first exposure to real estate when his parents received a foreclosure notice on their front door
His start in real estate with foreclosures in the late 1980s, which led to Brian creating software to help him organize his business
How he systematized his process for purchasing foreclosure properties, including inspections
The organic scaling of Brian’s business and why he changed paths to multifamily properties when he realized that foreclosures might eventually dry up
Multifamily syndications and the requirement to stay involved for multiple years at a time
What a debt fund is, and how it relates to an equity fund in syndications
The importance of diversification of asset classes for investors and vetting who you’re investing with
How Brian Burke came up with the passive-investing topic for his book, The Hands-Off Investor
Who his investors are and why you should be working with more than one sponsor
The impact of 2008 on Brian’s real estate career, the reason he almost gave up, and what he would do differently today
Why some people come to syndications because they weren’t good mini-operators on their own
The disconnect between buyers and sellers when it comes to what a fair price is for property
His advice for investors who want to get into the market now and where his business is going

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