Don’t Risk Your Capital: How to Safely Vet a Real Estate Sponsor w/ Brian Burke

Choosing the right real estate sponsor can be the difference between success and failure in your investments. 

But how do you know if a sponsor is truly worth your trust?

In this episode, I sit down with the one and only Brian Burke, a veteran in the real estate space with over 30 years of experience. Brian is the founder and CEO of Praxis Capital, a vertically integrated real estate investment company he founded in 2001, and has acquired more than a billion dollars in real estate across multiple cycles. He’s also the author of The Hands-Off Investor, the go-to guide for passive investors.

We break down the key things you need to look for when evaluating a sponsor and how to avoid the costly mistakes that many investors make. We talk about the right questions to ask, the sponsor’s track record you should focus on, and why their debt strategy could make or break your returns.

Tune in to learn how to properly vet a real estate sponsor and make smarter investment decisions!

Key Takeaways: 

• 00:00 Intro 
• 05:18 Chase sponsors, not deals 
• 08:04 Market trends and making sense of demographics 
• 13:49 How to properly vet a sponsor
• 16:44 The harsh truth about ROI
• 19:42 Sponsor due diligence and red flags 
• 22:38 Three crucial questions to ask a sponsor 
• 27:01 Fees, waterfalls, and underwriting 
• 42:21 Debt and maturity dates 
• 45:09 Advice for aspiring investors 
• 46:34 Outro

Additional resources: 

➡️ Check out Brian Burke: 

• Instagram: https://www.instagram.com/investorbrianburke/  

• Website: https://praxcap.com/

➡️ Visit https://reedgoossens.com/ and:

• Invest passively in multifamily real estate 

• Get FREE access to my 100% Passive Real Estate Investment Masterclass

• Take a look at my portfolio

• Get FREE multifamily real estate resources 

➡️ Follow me on social media:

• LinkedIn: https://www.linkedin.com/in/reed-goossens-b2a6a933/ 

• Instagram: https://www.instagram.com/reedgoossens/ 

• Facebook: https://www.facebook.com/reed.goossens/ 

➡️ Subscribe to my podcast: 

• YouTube: @ReedGoossensREI 

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Investing in the U.S. is a podcast for real estate investors and entrepreneurs who want to break into the U.S. market and grow their wealth!

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