Join us on the latest episode of Passive Investing from Left Field, featuring industrial real estate syndicator Joel Friedland.
With over 40 years of experience, Joel shares his insights on the significance of due diligence and how understanding tenants and real estate taxes is crucial to the success of real estate deals.
Discover why their company opts for all-cash deals with no debt and learn about the priorities set for tenant selection to ensure stability and security. Gain knowledge on how important neighboring businesses can impact your property’s value as Joel walks us through the responsibilities of landlords for building maintenance and insurance.
Dive into this informative session that sheds light on the appeal of industrial real estate for pension funds and the unique investment approach adopted by Joel Friedland. Don’t miss out on this enlightening conversation that will change the way you think about industrial investing.
About Joel Friedland
Joel Friedland is an industrial real estate syndicator with over 40 years of experience and nearly 100 acquisitions in the Chicagoland area totaling ~3 million sq ft. He has north of 200 investors and has a unique philosophy when it comes to debt ratios and preservation of capital. Day to day, he manages his portfolio of 16 industrial buildings in Chicago and is actively seeking new deals and partners to join our group.
Key Points From The Episode:
1. The importance of vetting tenants in industrial real estate by evaluating their financial statements, levels of debt, and major customer dependencies to ensure stability and avoid risks associated with tenants like the US Postal Service.
2. Joel Friedland shared his unique approach to real estate investing, which involves all-cash deals with no debt. This strategy is preferred by 64 long-time investors who prioritize consistency and stability over leveraging for bigger returns.
3. The average hold period for their properties is seven years, with a focus on selling buildings to user companies for a premium, providing a strong focus on long-term holdings and occasional liquidity options to investors through Rule 144.
4. Joel Friedland explained that thorough due diligence is crucial when vetting real estate deals and advised LP investors to focus on tenant financials, building conditions, and the diligence process for evaluating industrial deals.
01:47 His real estate journey
06:25 Transitioning from being a broker
11:02 Did he branch out and come back to Chicago?
13:31 How he deals with concentration of risk as a company?
16:53 What he is responsible for vs what his tenant is responsible for.
18:26 Pros and cons of doing deals with no debt
23:53 Tenant selection
27:40 The biggest risks when investing in industrial real estate
33:33 How does an LP vet his company?
38:05 Metrics that LP investors can focus on when evaluating one of his deals
39:56 His exit plan
45:00 How does you come to an agreement on price
47:04 Podcast recommendation
48:30 Thank you for watching
Thoughtful Money https://email@example.com
Rust Belt Capital
Left Field Investors – BEC
Spartan Investment Group
Left Field Investors – BEC