EP 185: Pivots and Passive Income - Part 2

In the second part of the episode with Eric Burns, Mike and Eric discussed the current landscape of real estate investments amidst rising interest rates, noting that while some investors face losses, skilled operators are thriving and capitalizing on market challenges. Eric emphasized the need for diversification within real estate and highlighted opportunities for attractive deals during downturns, drawing from his experiences in syndication and investor education. They also explored the construction industry's state, with Mike sharing insights on a positive builder's outlook and the natural market correction that weeds out less capable operators.

Eric echoed the importance of selective partnerships and securing favorable fixed-rate financing. Both underscored conservative underwriting practices, particularly regarding projected rent increases and cap rates, and the necessity of a robust strategy for property improvement. They discussed the advantages of using capital raisers and trusted operators to manage investments, advocating for ongoing education and adaptability in the evolving market. Eric encouraged doctors to pursue financial independence through his investment services.

 

What you’ll learn from this episode:

• The rising interest rates causing some investors to incur losses, experienced operators are finding ways to thrive, suggesting that strong management can lead to profitable opportunities even in challenging conditions.

• The importance of diversifying real estate holdings across different asset classes and markets, which can provide stability and potential for great deals during market downturns.

• The quality of operators in the construction industry is crucial; effective operators are more selective and can adapt to market changes, while weaker ones are often filtered out during tough times.

• Mike and Eric highlighted the necessity of conservative underwriting practices, focusing on realistic rent increases and cap rate projections. This approach helps mitigate risks and ensures better investment outcomes.

• The role of capital raisers.

About Eric Burns

Eric Burns is a Cincinnati-based entrepreneur. His journey has taken him from being a finance major to a Cincinnati Firefighter to a residential real estate investor and flipper to finally landing in commercial real estate. He values his journey and believes in the entrepreneurial spirit. 

His message to fellow entrepreneurs is simple, STOP TRADING YOUR TIME FOR MONEY and LIVE LIFE BULLISH. Like many, Eric started his real estate investment career in the residential space and expanded into the commercial arena. His first property was a student housing rental in 2016, while he was still active with the Cincinnati Fire Department. Later, he expanded into renovations, and eventually, after many years of growth, education, and “failing forward”, Eric found himself in the commercial space.

Connect with Eric

• Website
• LinkedIn
• Facebook
• Instagram

What to anticipate soon, stay tuned!

• Upcoming FREE Webinar
• Facebook Live: "Ask Me Anything"  an interactive 30-minute question and answer session on a weekend morning coffee
• The Fortress Capital Investors Club Launch

Connect with us

If you’re a busy professional who wants to know more about growing your wealth through real estate, contact us at [e-mail] | TheFortressCapital.com  

• Website: Surgeon Syndicate
• LinkedIn: Michael McManus
• Instagram: @michaelmcmanusp
• Facebook: Michael McManus