List of Syndicators/GPs to AVOID?
Most Popular Reply
Scott TrenchPro Member
Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votesAs always, it will be a case by case basis.
This thread is about GPs to avoid. Many LPs thanked their sponsors for good returns with millions of dollars in guaranteed fees, and tens of millions in carried interest. To those sponsors, LPs shouldn't say "thank you." They should say, "you're welcome."
GPs solicited investors by promising huge returns and citing their track records. Some did this very publicly. Then those GPs "earned" fees just for buying the buildings... the same buildings that will now result in many cases in total wipeout for their investors. Some of them are now asking for more capital to bail out these buildings and have very real risk of losing that too.
LPs absolutely have a right to be mad, and a total or near total wipeout of invested capital in the last 3-5 years absolutely invalidates a decade of performance in many, but not all, cases, in my view, especially in the 2010s, when almost anyone with a pulse could make money in multifamily.
However, what matters more to me than whether a fund or deal is wiped out, is how the sponsor handles it.
"Good" in the context of losing, to me, looks like this:
Sponsor honestly appraises the situation, and provides a blunt assessment of where they made a bad bet, failed in due diligence, operated poorly, or were totally irresponsible with leverage and timing. Sponsor realistically and honestly susses out this from market challenges, which of course are real.
Sponsor tells investors that they are committed to operating their current business and stewarding investor capital. Sponsor recommits full-time attention to their job, which is to oversee the tens of millions, hundreds of millions, and/or billions of Assets they deploy.
Sponsor is regularly seen on-site at every property in their portfolio, regardless of personal cost.
They raised the big bucks, and things aren't going well. Are they going to be on vacation? Are they going to start up the next fun side project or fund? Or are they going to go to work and do everything they can to make their investors whole on their CURRENT deals?
I'm in a deal that's gone south as an LP. My sponsor is doing "Good" in the context of losing.
We all knew what we were getting into. We knew the bet. He executed it. It's his full-time job. It's all he does. He lives within an easy drive of every property in the portfolio.
Doesn't change that I am getting flushed on the deal. But, I may/will invest with him again. He operated it well. Executed the plan, keeps the units occupied. Just supply and interest rates crushed us. I expect many investors will not be happy, but they also won't publicly roast him for fleecing them.
Other sponsors aren't doing "good" in the context of losing. They will get roasted.
Some deserve it.
134 Replies
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
@Forest Wu
Great idea. There are a few tossed around here on BP but I have not directly invested in them, so I won’t comment on them but would recommend anyone responding if you are including a name, please have invested with them.
7e investments53 Reviews - Member since 2023 · 72 posts · 44 votes2y
That's a good point, @Chris Seveney. But I think sharing the experiences of close friends/colleagues/family is fair game too. In those cases, I think someone just needs to clarify that it isn't their first-hand experience.
- 2yGino BarbaroPro MemberRental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
There are companies out there that have GPs on their platform, and rank them. Check out --> go invest clearly.
Why don't we also put a list of good GPs, which there are a lot. And from my experience, I think investors who are investing passively bear some of the responsibility. When I invested in my first syndication over 20 years ago, the lead was terrible, but if I had known how to vet a sponsor, done underwriting, due diligence, I would have avoided the deal.
Gino
- 2yScott TrenchPro MemberRental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
Goinvestclearly has some of these rankings. And, if you want to really see how LPs feel in a non public environment, there’s an “LP only” forum on Left Field Investors that discussed “red flag” sponsors that investors won’t work with again.
- Member since 2023 · 72 posts · 44 votes2y
Quote from @Gino Barbaro:
There are companies out there that have GPs on their platform, and rank them. Check out --> go invest clearly.
Why don't we also put a list of good GPs, which there are a lot. And from my experience, I think investors who are investing passively bear some of the responsibility. When I invested in my first syndication over 20 years ago, the lead was terrible, but if I had known how to vet a sponsor, done underwriting, due diligence, I would have avoided the deal.
Gino
Happy to have people talk about their good experiences as well! Let's have a list of good GPs - that makes sense. It's just unfortunately I've only heard bad experiences thus far and it doesn't seem like anything gets talked about in these forums.
- Member since 2023 · 72 posts · 44 votes2y
Quote from @Scott Trench:
Goinvestclearly has some of these rankings. And, if you want to really see how LPs feel in a non public environment, there’s an “LP only” forum on Left Field Investors that discussed “red flag” sponsors that investors won’t work with again.
Thanks for letting me know! I checked out Goinvestclearly but the rankings seem pretty limited and it more or less seems like people just talk about how amazing their experiences are. This is fine but I have a hard time believing that all the syndications are great. I'll take a look at Left Field Investors though.
- 2yGino BarbaroPro MemberRental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
I recorded a podcast with Ash Patel yesterday from Best Ever, and he made a great point. LPs have been enriched, just like Gps the past ten years. The market has corrected the past two years, and now everyone is complaining. I rarely heard anyone thanking GPs for their 20+ IRR for over a decade.
I just sold our third syndication two months ago with a 20+ IRR, averaging over 20 IRR for three syndications. Unfortunately, it is human nature to complain much more than it is to be grateful.
There are good deals out there and good sponsors.
Gino
- 2yJustin R.Pro MemberRental Property Investor · San Anselmo · Member since 2015 · 659 posts · 600 votes
@Gino Barbaro Really??
"Thank you so much for a 15-20% IRR when 3/4 of that is done by inflation, and the remainder from cap rate compression "
Also “Thank you for losing 100% of our over leveraged capital!”
That’s not how it works man. An operator HAS to be a good steward of their investors money ALL the time.
- 2yScott TrenchPro MemberRental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
As always, it will be a case by case basis.
This thread is about GPs to avoid. Many LPs thanked their sponsors for good returns with millions of dollars in guaranteed fees, and tens of millions in carried interest. To those sponsors, LPs shouldn't say "thank you." They should say, "you're welcome."
GPs solicited investors by promising huge returns and citing their track records. Some did this very publicly. Then those GPs "earned" fees just for buying the buildings... the same buildings that will now result in many cases in total wipeout for their investors. Some of them are now asking for more capital to bail out these buildings and have very real risk of losing that too.
LPs absolutely have a right to be mad, and a total or near total wipeout of invested capital in the last 3-5 years absolutely invalidates a decade of performance in many, but not all, cases, in my view, especially in the 2010s, when almost anyone with a pulse could make money in multifamily.
However, what matters more to me than whether a fund or deal is wiped out, is how the sponsor handles it.
"Good" in the context of losing, to me, looks like this:
Sponsor honestly appraises the situation, and provides a blunt assessment of where they made a bad bet, failed in due diligence, operated poorly, or were totally irresponsible with leverage and timing. Sponsor realistically and honestly susses out this from market challenges, which of course are real.
Sponsor tells investors that they are committed to operating their current business and stewarding investor capital. Sponsor recommits full-time attention to their job, which is to oversee the tens of millions, hundreds of millions, and/or billions of Assets they deploy.
Sponsor is regularly seen on-site at every property in their portfolio, regardless of personal cost.
They raised the big bucks, and things aren't going well. Are they going to be on vacation? Are they going to start up the next fun side project or fund? Or are they going to go to work and do everything they can to make their investors whole on their CURRENT deals?
I'm in a deal that's gone south as an LP. My sponsor is doing "Good" in the context of losing.We all knew what we were getting into. We knew the bet. He executed it. It's his full-time job. It's all he does. He lives within an easy drive of every property in the portfolio.
Doesn't change that I am getting flushed on the deal. But, I may/will invest with him again. He operated it well. Executed the plan, keeps the units occupied. Just supply and interest rates crushed us. I expect many investors will not be happy, but they also won't publicly roast him for fleecing them.
Other sponsors aren't doing "good" in the context of losing. They will get roasted.
Some deserve it.
- 2yGino BarbaroPro MemberRental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
I guess you've never lost money.
Last time I checked 20 IRR was a lot better than most other investments, even with cap rate compression and inflation.
I know how it works man. After personally owning currently 1,7000 units, and selling over 600, I understand being a good steward, but things do happen, like Covid, and inflation and recessions. I'm sure a lot of these GPs were trying to be good stewards.
I've interviewed them all, from Swapnil, to Dan Handford, to Ivan Barrett, to Robert Martinez. They got caught using wrong debt.
- 2yBrian BurkePro MemberInvestor · Santa Rosa, CA · Member since 2012 · 2k+ posts · 7k+ votes
I think a lot of people would categorize a sponsor as “good” if they delivered a fair return. Many people would label a sponsor as great if they exceeded the projected return. They would label them as bad if they paused distributions or issued a capital call. And if all or most capital was lost, many investors would label the sponsors as crooks.
But these labels are all wrong, which is why the idea of a ranking list presents problems and could lead to poor sponsor selection. The problem isn’t the list, the problem is “garbage in, garbage out.” Smart LPs need to look deeper if they are to make good selections.
The sponsor’s number one job isn’t to buy real estate—it’s to not lose people’s money. For the last decade we’ve been in a continuous bull market, so most sponsors would get a good or great rating if they are any good at investor communication and accounting.
But today’s market is one where real assessments can be made. Tough times show who people really are.
Assuming great communication, I’d label a sponsor as “great” if they get through the next couple of years without losing investor’s money. “Good” if they lose some money but are very transparent about it as @Scott Trench mentioned in his post. “Bad” if they lose all money, or if they lose some money but fail to communicate. And “crooks” if they misappropriate funds or lie to (or conceal facts from) investors.
- Investor · Member since 2024 · 19 posts · 51 votes2y
No one wants to name names and understandably so. I think any list of bad sponsors needs to be broken down into two categories: 1) Inexperienced sponsors that got caught up in a rising interest rate environment, and 2) Bad sponsors that are either acting malicious and/or greedy.
There are many many many sponsors, particularly those on BP and raising capital on social media, that fall within the first category.
Category #1 - Inexperienced Sponsors:
Ashcroft, Opendoor, Elevate, Western Wealth, Tides, ZMR, GVA
Category #2 - Malicious/Greedy sponsors:
Appleway, Nitya, Rise48, any "fund of fund" sponsor that's come out of Rise 48, Grant Cardone, Affinity, Nightingdale, Rockstar Capital
This is just a short list but I think it's important to protect LPs. The wall street oasis community does a good job at calling out the terrible sponsors. https://www.wallstreetoasis.com/forum/real-estate/mf-syndica...
- Professional · San Francisco, CA · Member since 2014 · 876 posts · 301 votes2y
Quote from @Scott Trench:
"Good" in the context of losing, to me, looks like this:Sponsor honestly appraises the situation, and provides a blunt assessment of where they made a bad bet, failed in due diligence, operated poorly, or were totally irresponsible with leverage and timing. Sponsor realistically and honestly susses out this from market challenges, which of course are real.
Sponsor tells investors that they are committed to operating their current business and stewarding investor capital. Sponsor recommits full-time attention to their job, which is to oversee the tens of millions, hundreds of millions, and/or billions of Assets they deploy.
Sponsor is regularly seen on-site at every property in their portfolio, regardless of personal cost. They raised the big bucks, and things aren't going well. Are they going to be on vacation? Are they going to start up the next fun side project or fund? Or are they going to go to work?
I'm in a deal that's gone south as an LP. My sponsor is doing "Good" in the context of losing.
We all knew what we were getting into. We knew the bet. He executed it. It's his full-time job. It's all he does. He lives within an easy drive of every property in the portfolio.
Doesn't change that I am getting flushed on the deal. But, I may/will invest with him again. He operated it well. Executed the plan, keeps the units occupied. Just supply and interest rates crushed us. I expect many investors will not be happy, but they also won't publicly roast him for fleecing them.
Other sponsors aren't doing "good" in the context of losing. They will get roasted.
Some deserve it.
Yes, good post.
There are many qualified Sponsors to consider. In my firm, we underwrite the Sponsor as a company in addition to their individual offerings. It is entirely possible that a Sponsor can be approved, but an individual offering may not.
This industry, like all real estate, has its ups and downs. Those that tend to have a bad experience, is typically tied to poor Sponsor selection or offering selection. It's vitally important to know who you are working with, and have the history of the players involved. I see former players from the 2000's coming back to the industry under different business names, and some of their prior work was less than stellar. It's important to have the advice and perspective of an industry old-timer, in my opinion.
- Member since 2023 · 72 posts · 44 votes2y
Quote from @Gino Barbaro:
I recorded a podcast with Ash Patel yesterday from Best Ever, and he made a great point. LPs have been enriched, just like Gps the past ten years. The market has corrected the past two years, and now everyone is complaining. I rarely heard anyone thanking GPs for their 20+ IRR for over a decade.
I just sold our third syndication two months ago with a 20+ IRR, averaging over 20 IRR for three syndications. Unfortunately, it is human nature to complain much more than it is to be grateful.
There are good deals out there and good sponsors.
Gino
Agree - I think it goes both ways. However, I think it depends on the situation too. If a GP is claiming that they'll achieve a certain IRR, I do think it's fair to hold them accountable to that - especially if they claim it's conservative. If they exceed target metrics, then praise them. If they miss target metrics by a lot, then I think it's fair to complain.
And there's always atypical situations: good sponsors that got unlucky with bad properties and bad sponsors that got lucky with great properties.
If there are good deals with good sponsors that you've invested with in the past and will continue to invest with them today, I'm all ears. Let's make sure it's easier for them to raise capital.
- Member since 2023 · 72 posts · 44 votes2y
Quote from @Scott Trench:
As always, it will be a case by case basis.
This thread is about GPs to avoid. Many LPs thanked their sponsors for good returns with millions of dollars in guaranteed fees, and tens of millions in carried interest. To those sponsors, LPs shouldn't say "thank you." They should say, "you're welcome."
GPs solicited investors by promising huge returns and citing their track records. Some did this very publicly. Then those GPs "earned" fees just for buying the buildings... the same buildings that will now result in many cases in total wipeout for their investors. Some of them are now asking for more capital to bail out these buildings and have very real risk of losing that too.
LPs absolutely have a right to be mad, and a total or near total wipeout of invested capital in the last 3-5 years absolutely invalidates a decade of performance in many, but not all, cases, in my view, especially in the 2010s, when almost anyone with a pulse could make money in multifamily.
However, what matters more to me than whether a fund or deal is wiped out, is how the sponsor handles it.
"Good" in the context of losing, to me, looks like this:
Sponsor honestly appraises the situation, and provides a blunt assessment of where they made a bad bet, failed in due diligence, operated poorly, or were totally irresponsible with leverage and timing. Sponsor realistically and honestly susses out this from market challenges, which of course are real.
Sponsor tells investors that they are committed to operating their current business and stewarding investor capital. Sponsor recommits full-time attention to their job, which is to oversee the tens of millions, hundreds of millions, and/or billions of Assets they deploy.
Sponsor is regularly seen on-site at every property in their portfolio, regardless of personal cost.
They raised the big bucks, and things aren't going well. Are they going to be on vacation? Are they going to start up the next fun side project or fund? Or are they going to go to work and do everything they can to make their investors whole on their CURRENT deals?
I'm in a deal that's gone south as an LP. My sponsor is doing "Good" in the context of losing.We all knew what we were getting into. We knew the bet. He executed it. It's his full-time job. It's all he does. He lives within an easy drive of every property in the portfolio.
Doesn't change that I am getting flushed on the deal. But, I may/will invest with him again. He operated it well. Executed the plan, keeps the units occupied. Just supply and interest rates crushed us. I expect many investors will not be happy, but they also won't publicly roast him for fleecing them.
Other sponsors aren't doing "good" in the context of losing. They will get roasted.
Some deserve it.
Great thoughts, Scott! I do think there are really good GPs just stuck in bad deals during these rough times - your anecdote makes a lot of sense. At the same time, there are just bad GPs who probably should have no business being GPs due to lack of accountability.
- Rental Property Investor · Member since 2018 · 826 posts · 810 votes2y
@Brian Burke I think a great sponsor is someone who pulls out of the market when all signs point to a very frothy bubble, even while every other sponsor is forging ahead.
I applaud you and the Praxis group for having discipline and integrity. You gained credibility when you took personal risk to protect your LPs during the prior downturn, and you’ve secured my trust with your actions during this cycle.
Counter-cyclic investing is an aspiration that few achieve - kudos to you.
- Member since 2023 · 72 posts · 44 votes2y
Quote from @Account Closed:
No one wants to name names and understandably so. I think any list of bad sponsors needs to be broken down into two categories: 1) Inexperienced sponsors that got caught up in a rising interest rate environment, and 2) Bad sponsors that are either acting malicious and/or greedy.
There are many many many sponsors, particularly those on BP and raising capital on social media, that fall within the first category.
Category #1 - Inexperienced Sponsors:
Ashcroft, Opendoor, Elevate, Western Wealth, Tides, ZMR, GVA
Category #2 - Malicious/Greedy sponsors:
Appleway, Nitya, Rise48, any "fund of fund" sponsor that's come out of Rise 48, Grant Cardone, Affinity, Nightingdale, Rockstar Capital
This is just a short list but I think it's important to protect LPs. The wall street oasis community does a good job at calling out the terrible sponsors. https://www.wallstreetoasis.com/forum/real-estate/mf-syndica...
@Account Closed - Thanks so much for writing this! I think there are a lot of investors here on Biggerpockets who aren't willing to post their terrible experiences here which is unfortunate. I'm guessing it's the fear of backlash or just the shame that comes from embarassment at times. Your post helps increase transparency or at least helps investors think twice before investing
@Scott Trench, I hope we can continue encouraging others to share their tough experiences here rather than seek truth on other website forums. Many may have found their deals here in BP. We should celebrate wins but also reflect on losses as well.
- Member since 2023 · 72 posts · 44 votes2y
Quote from @Allan C.:
@Brian Burke I think a great sponsor is someone who pulls out of the market when all signs point to a very frothy bubble, even while every other sponsor is forging ahead.
I applaud you and the Praxis group for having discipline and integrity. You gained credibility when you took personal risk to protect your LPs during the prior downturn, and you’ve secured my trust with your actions during this cycle.
Counter-cyclic investing is an aspiration that few achieve - kudos to you.
That's a great story to hear. Did you invest with the Praxis group? If so, it would be helpful to hear some of the stories - both bad and good! If you can share some specifics of what Brian Burke did to protect LPs, that'd be great!
- 2yScott TrenchPro MemberRental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
I agree. We are going to make a major investment in this area with a new brand called PassivePockets, coming in June. You can join the waitlist by looking for syndications and passive investing in the navigation bar.
We will shine a light on this industry and celebrate good and expose bad.
- 2yScott TrenchPro MemberRental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
Quote from @Forest Wu:
Quote from @Allan C.:
@Brian Burke I think a great sponsor is someone who pulls out of the market when all signs point to a very frothy bubble, even while every other sponsor is forging ahead.
I applaud you and the Praxis group for having discipline and integrity. You gained credibility when you took personal risk to protect your LPs during the prior downturn, and you’ve secured my trust with your actions during this cycle.
Counter-cyclic investing is an aspiration that few achieve - kudos to you.
That's a great story to hear. Did you invest with the Praxis group? If so, it would be helpful to hear some of the stories - both bad and good! If you can share some specifics of what Brian Burke did to protect LPs, that'd be great!
My understanding is that Brian Burke sold his portfolio by 2021, and has by and large sat on the beach twiddling his thumbs and working on his tan for the last three years. Dabbled in some low risk first position debt and credit funds.
During this period he was also a vocal bear on the market, including here on BiggerPockets. His warnings were largely unheeded.
- Investor · Member since 2024 · 19 posts · 51 votes2y
I've been a long time reader of BP but active only on WSO. Both valuable but the two forums are almost exact opposites. WSO is anonymous which creates an environment of exaggerated comments but mostly filled with experienced associates in the industry. BP has genuine people interested in real estate and some good sponsors but a large number "guru" sponsors that are more focused on raising capital than finding and executing good investments. I think more needs to be done to protect LPs across the industry or if that's too difficult, stricter accredited status and/or higher minimums. The amount of lost capital has only just begun to be realized and the sponsors on my list that are still acquiring properties are particularly troubling to see.
- Member since 2019 · 7k+ posts · 4k+ votes2y
Quote from @Forest Wu:
Hi! One of my last posts was asking about syndications/PE opportunities. Unfortunately, I've come across quite a few people who are really upset with how their syndication experience has been. Quite a few people have lost a lot of money. I think it'll be very helpful to increase transparency on those operators who have betrayed their investors trust or simply are poor performers. So let's do the following:
1/ List the GP / syndication that you've had a terrible experience with
2/ At a high level (and as much as you're comfortable sharing), provide a reason for why the GP / Syndication should be avoided from your experience (or an acquaintance's experience)
3/ Any lesson learned to help future investors
Let's help each other avoid future mistakes and bring hold GPs/operators accountable.
You should join LP Forum and they talk about this 24/7, this is the topic that I really get very bored of. These lists are very debatable and when you say something bad about XXX publicly, those guys from XXX would come here to BP and may start defending themselves lol :)
I give you one good one ok, and they are not in multifamily sector: Denholtz GP syndication for industrial.
As for me, if you want to check good GP or not, check their financing, if they're use long 7-10 years agency fixed-debt, they could be my friend, despite thay're good or ot.
- Member since 2019 · 7k+ posts · 4k+ votes2y
Quote from @Scott Trench:
Quote from @Forest Wu:
Quote from @Allan C.:
@Brian Burke I think a great sponsor is someone who pulls out of the market when all signs point to a very frothy bubble, even while every other sponsor is forging ahead.
I applaud you and the Praxis group for having discipline and integrity. You gained credibility when you took personal risk to protect your LPs during the prior downturn, and you’ve secured my trust with your actions during this cycle.
Counter-cyclic investing is an aspiration that few achieve - kudos to you.
That's a great story to hear. Did you invest with the Praxis group? If so, it would be helpful to hear some of the stories - both bad and good! If you can share some specifics of what Brian Burke did to protect LPs, that'd be great!
My understanding is that Brian Burke sold his portfolio by 2021, and has by and large sat on the beach twiddling his thumbs and working on his tan for the last three years. Dabbled in some low risk first position debt and credit funds.
During this period he was also a vocal bear on the market, including here on BiggerPockets. His warnings were largely unheeded.
The problem that most average Joe find it hard to accept is that they are on the business 24/7, meaning they have to keep in the market to create deal despite the market condition. For example lets say my company is always losing money in Q1 and Q2, but good at Q3/Q4, are we going to close shop or not, of course no.
Also for some large investment group, for example, pension funds, they have to be in the market all the time, so they have to invest to something that's very large where asset is being secured by real estate.
It's just you can find the following condition :
In good market you can find 80% GP group to be good
Then in next bad market condition, you find those 50% out of 80% good GP becoming bad, so only 30% of the group is performing.In the next good cycle, from those original 80%,50% may rise to be good again.
Those guys (GP/and such) are similar to us when we buy/sell rental property, it's just that their problem is way way more complicated than SF buyer.
- 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Forest Wu:
Quote from @Allan C.:
@Brian Burke I think a great sponsor is someone who pulls out of the market when all signs point to a very frothy bubble, even while every other sponsor is forging ahead.
I applaud you and the Praxis group for having discipline and integrity. You gained credibility when you took personal risk to protect your LPs during the prior downturn, and you’ve secured my trust with your actions during this cycle.
Counter-cyclic investing is an aspiration that few achieve - kudos to you.
That's a great story to hear. Did you invest with the Praxis group? If so, it would be helpful to hear some of the stories - both bad and good! If you can share some specifics of what Brian Burke did to protect LPs, that'd be great!
I invested with Praxis and the deal did not really go as we hoped but to Brians credit he made sure we did not lose principal .. that is HUGE.. . Its all about principal protection and live to redeploy and fight another day in my mind. Not every deal is going to work and when interest rates are 1% and your deal is paying a 8 pref plus upside your taking on some risk.. I don't think folks really understand the risk part of this. and when it does not work they start throwing those sponsors under the bus.. - 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Scott Trench:
Quote from @Forest Wu:
Quote from @Allan C.:
@Brian Burke I think a great sponsor is someone who pulls out of the market when all signs point to a very frothy bubble, even while every other sponsor is forging ahead.
I applaud you and the Praxis group for having discipline and integrity. You gained credibility when you took personal risk to protect your LPs during the prior downturn, and you’ve secured my trust with your actions during this cycle.
Counter-cyclic investing is an aspiration that few achieve - kudos to you.
That's a great story to hear. Did you invest with the Praxis group? If so, it would be helpful to hear some of the stories - both bad and good! If you can share some specifics of what Brian Burke did to protect LPs, that'd be great!
My understanding is that Brian Burke sold his portfolio by 2021, and has by and large sat on the beach twiddling his thumbs and working on his tan for the last three years. Dabbled in some low risk first position debt and credit funds.
During this period he was also a vocal bear on the market, including here on BiggerPockets. His warnings were largely unheeded.
Brian is not just twiddling his thumbs he has started debt fund and is being the bank you can invest in that today I believe.
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