Zero Debt Class B Industrial Deals in Chicago with Joel Friedland

The Source of Commercial Real Estate

In this episode, Jonathan talks with Joel Friedland of Brit Properties. Joel invests in small, Class B industrial properties in Chicago, Illinois. The two discuss how the Great Financial Crisis shaped Joel's investing, why Joel does most deals with zero debt, and why you might just meet your next passive investor at the cleaners.
Joel has a 42 year track record in industrial real estate. He co-founded Epic/Savage Realty Partners in 1991 where he oversaw hiring and mentoring 60 industrial real estate professionals, many of whom became his partners. His group sold the firm to an international real estate company in 2014 and Joel started Brit Properties.

As an industrial real estate broker and owner, Joel has secured over 2,000 industrial property leases and sales, totaling over $2 billion in brokerage volume and $250 million in acquisitions. His greatest accomplishment is maintaining valued relationships with brokers, tenants and investors spanning five decades. He does fully syndicated deals, often with 0% debt, an unheard of approach in real estate which caters to his wealthy investor base primarily concerned with conservation of principal.
Connect with Joel:
https://britproperties.com/

Takeaways

• Avoid excessive debt and prioritize conservative investment strategies.
• Focus on zero debt deals to minimize risk and ensure investor safety.
• Invest in single tenant industrial properties for their desirability and simplicity of management.
• Build relationships with high net worth individuals through networking and genuine care.
• Consider the potential for user sales when investing in properties. Cold calling and networking are effective methods for finding deals in the industrial real estate market.
• Intimate market knowledge is crucial for evaluating deals and understanding market rent and demand.
• Learning from bad deals is important, and it's essential to stick with what you know and avoid risky ventures.
• Networking with brokers and owners is a key strategy for finding deals in the real estate industry.

Chapters

00:00
Introduction and Background

02:19
The Great Financial Crisis and Investment Strategy

08:16
Brit Properties and Ideal Deals

12:30
Recovering from the Financial Crisis

16:56
The Zero Debt Strategy

23:20
Investor Expectations and Risk Aversion

29:45
Single Tenant vs. Multi-Tenant Industrial Properties

35:21
Deal Analysis: Chicago River Property

43:22
Investing in Cook County, Illinois

47:10
Networking with High Net Worth Individuals

50:3

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