The #1 Way to Manage Risk, with Brian Burke

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By Jeremy Goodrich. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. On the show today, we have one of the behemoths in the CRE world, a returning guest, Brian Burke. Brian has been investing in real estate for 30+ years, he has tons of doors in his portfolio and he’s a contributing member to the Bigger Pockets community. In our conversation, he gives us insight into how risk works in his portfolio, how he thinks about it, and how he navigates it.

Learn more about Brian and his journey at shineinsurance.com/managing-commercial-real-estate-risk!

“Nothing gives you a better education than experience. And especially bad experiences.”

4:10

At the beginning of the show, Brian talks about how he gained experience in real estate investing. According to him, adversity and difficulty are the greatest education and through them, we can gain a lot of experience.

During his long career, Brian realized that the best way to mitigate real estate risk is to not have too much debt and not be over-leveraged. His advice for new investors to avoid over-leveraging is to slowly keep expanding their base of investors and always invest within their means.

“When you have a property that goes up in value as quickly as in this market, you have to sell it and cash in.”

14:44

Brian explains the most significant external pressures on investors in the current market.

  • The biggest risk is labor shortage. It’s difficult to find good people to manage properties.
  • Intense demand for income real estate is causing prices to run up incredibly high.

According to Brian, in this market, it’s very easy to sell properties as everything is appreciating fast. His advice for buyers is to be thoughtful about the assets they buy. Some assets still make sense to acquire because the rents are also going up tremendously.

About Our Guest, Brian Burke

Brian has acquired over 800 million dollars worth of real estate over a 30-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 he 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.

Mentioned in the show:

  1. https://praxcap.com/
  2. Brian Burke - The Hands-Off Investor
  3. His LinkedIn
  4. Shineinsurance.com
  5. www.shineinsurance.com/managing-commercial-real-estate-risk
  6. Jeremy’s LinkedIn

Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/

Special thanks to Brian Burke for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now:

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

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