Debt-Free Industrial: 107 Buildings Without Banks

The Real Estate Investing Club

Join an active community of RE investors here: https://linktr.ee/gabepetersen  TIMESTAMPS: 0:00 Introduction to Industrial Real Estate Investing 1:04 How Joel Started in 1981 With a Family Office 8:00 The 2008 Financial Crisis Nearly Destroyed Everything 12:33 Why We Switched to 100% Debt-Free Investing 17:43 The Hardest Decision: When to Sell a Property 21:42 Single Tenant Risk Strategy Explained 24:43 Quick Question Round: Books and Life Advice 27:14 Cold Calling Strategy That Bought 3 Buildings 29:21 The $1 Million Loss That Changed Everything 32:02 Succession Planning for Real Estate Investors  INDUSTRIAL REAL ESTATE INVESTING WITHOUT DEBT  🏭 Discover how Joel Friedland built a $300 million industrial real estate portfolio across 107 buildings using a strategy almost nobody else follows: zero debt investing. After nearly losing everything in 2008, Joel transformed his approach to commercial real estate and created a recession-proof business model that generates consistent returns for over 300 investors. THE 2008 CRISIS THAT CHANGED EVERYTHING In this episode of The Real Estate Investing Club podcast, Joel shares the raw truth about facing $70 million in personal guarantees during the global financial crisis. He opens up about falling into depression, contemplating the worst, and fighting to save his entire portfolio from bankruptcy. This experience led to a complete philosophical shift in how he approaches real estate syndication and asset management today.  CLASS B INDUSTRIAL PROPERTIES EXPLAINED  Learn the difference between big box Amazon facilities and small box Class B industrial buildings that most investors overlook. Joel explains why manufacturing tenants in industrial parks sign 15-year leases with annual rent increases of 3%, creating predictable cash flow that averages 9.5-10% returns over time. These industrial properties house everything from aerospace parts manufacturers to magnet producers serving critical industries.  DEBT-FREE REAL ESTATE SYNDICATION STRATEGY  Whether you're interested in commercial real estate, industrial property investment, debt-free syndication strategies, or building a recession-proof real estate portfolio, this episode delivers actionable insights from someone who survived the 2008 crisis and emerged stronger. 💪🏢 #IndustrialRealEstate #DebtFreeInvesting #RealEstateSyndication #CommercialRealEstate #RealEstateInvesting Want to learn more about our guest? Connect here: https://www.britproperties.com/  Want to learn more about the REI Club Podcast, how to invest with Gabe at Kaizen, or join our community of active real estate investors on Skool? Visit the podcast website at https://www.therealestateinvestingclub.com or click here: https://linktr.ee/gabepetersen

Transcript

00:00all right we are back with another episode of the real estate investing club i hope you guys

00:12are having a great day a great week wherever you are and whatever day it is for you as always on

00:18the podcast we're bringing that friday energy to you and i do have to apologize my two-year-old

00:24daughter got me sick so i have a little bit of a voice today but we'll uh we'll get through it

00:30um it's gonna be a good day though because we got a uh uh less talked about asset class i guess i'll

00:36say that on this show today with joel friedland he is with brit properties and they buy industrial

00:42um industrial as you guys know i've mentioned this on the show i've always been kind of interested

00:46in it i don't know why i just it's like big self-storage for some reason i really like the

00:50idea about it uh so i'm i'm super excited to jump into this learn a little bit joel has a ton of

00:56experience he's been in it since i believe if i remember what you uh submitted joel um 1991 i

01:02believe is when you were when you first got in so you've been in for a while a lot of wisdom to jump

01:06in joel thanks for hopping on the show thanks for having me gabe actually i started as a real estate

01:13broker an industrial real estate broker in 1981 when i was 22 years old i worked for a family

01:21business but it wasn't my family uh that owned 80 industrial buildings around the chicago area

01:27and they trained me as to how to do leasing selling and uh syndicating so very great it was amazing it

01:36was a father two sons and a daughter and they took me under their wing like i was a family member

01:40so that i've mentioned this yeah i've mentioned this on the show a few times like i i wish i had

01:47that kind of start where you you kind of get to be part of a small family office that's buying a

01:53certain asset class and you just get to learn i mean those i bet in those 10 years you learned

01:57everything there was to know about industrial uh i learned as much as i could and then in the in the

02:03last 30 uh years which is a lot you learn the rest a lot more many many lessons yeah nice well let's uh

02:14let's get into those lessons you know we always like to start with stories we like to hear you know

02:18how people got from where they started to where they are today you already kind of gave us the beginning

02:23of that story you work with a family office you were doing you were a broker doing leasing that kind of

02:27stuff um so tell us how it's gone since then like what what has your career trajectory done

02:33well i left that family in in uh 1991 that was the year that i started my own business with a couple

02:41other guys and i stayed close with the family by the way i still am close with them uh it's really

02:47important for me to have long-term relationships and that's really the thing that i would say is the

02:52essence of who i am i'm 66 and i i do whatever i can to uh maintain relationships with people and

03:02investors so i i've started putting my own uh syndications together and since then i've acquired

03:08107 industrial buildings uh probably about 300 million dollars worth and to make it simple i have

03:15about 300 investors and they go back with me as far back as uh 34 years and we currently own we've sold

03:2482 buildings so we currently own about 25 buildings and the biggest uh thing that you need to know about

03:31industrial is that there are many kinds of industrial when you drive by an amazon facility

03:36on the side of a highway that that's called big box or class a and what i uh buy and syndicate are

03:44what are called small box class b every town in the world has industrial parks if you there's usually

03:52an industrial drive it's the old uh industrial park in in the newer parks they have fancier names and

03:59they're curvy streets with ponds and they they're called business parks the key thing about industrial

04:06class b small buildings is in chicago it's a lot of manufacturing so of our 25 buildings we have about

04:1417 manufacturers who have big machines that uh people who are very well trained the the labor is well

04:23trained technical and they make parts for uh

04:29for aerospace for medical all kinds of things anything and everything that is in your home or

04:37your office or your school uh or your hospital is made in an industrial building and then warehoused in

04:44an industrial building that that's the the background and these are usually longer term leases unlike self

04:53storage where someone can get out of the lease people sign tenants sign leases with us for

04:57three years five years ten years fifteen years we had a magnet company that was in a building of

05:05ours in a town called elk row village which is narrow hair airport and they manufactured magnets

05:10for industry magnets are in everything magnets are in your computer magnets are in your car there's

05:16magnets everywhere who knew and they would manufacture those magnets in their building and they signed a

05:2515 year lease because there's so much equipment they can't afford to leave and the rent goes up every

05:30single year goes up usually by about three percent so we start out with our investors our limited partners

05:36making seven or eight percent uh as a yield and over a 15 year period it probably averages about

05:44nine and a half percent to ten percent and we hold them very very long term we're like a family office

05:52ourselves our investors our investors are with us it's it's their their way of instead of being in a

05:58short-term three to five or seven year deal of actually feeling like they're part of a wealthy family that

06:04never sells and so if people want to get out of our deals they call me and they say i'd like liquidity

06:11and because we have so many investors i can make a phone call and get them out in one day

06:15ah that makes sense that is actually a point that i never really thought about is that if somebody

06:22you know the advantage of having been in the game for so long you have you know 300 investors who've

06:28invested with you it gives i mean it's an advantage for the people the addition you know new investors

06:33coming in because um if somebody's in the pool and they want to get out those new investors will be able

06:39to take their place and so it i mean it like you said it allows liquidity in the investor pool that's

06:45already engaged in these you know 15 year um investments so yeah that makes a lot of sense

06:50are you i mean while you're talking a lot of questions kind of started popping up in my head

06:56um one of them you mentioned manufacturing you guys like investing in the you you said b class i don't

07:02know if that's specifically what it's called but on the b class type of of industrial um and you

07:07kind of broke it into two categories you said manufacturing and warehouse um this has been a

07:12real big push for the current administration is getting manufacturing back to the united states are

07:17you seeing are you seeing that in the you know on the ground is there a increase in demand not yet

07:24uh it takes years and years to set up a manufacturing operation and the planning that goes into it the

07:30strategy is is a years-long process we won't see any of this for four to five years if it happens

07:37but i want to tell you one more interesting thing um we do all of our deals debt free we don't borrow

07:43money oh we don't like banks we're very conservative our investors don't want to lose money in 2008 i had

07:5050 buildings gabe and um 10 of them were in trouble because of the global financial crisis and i i was uh

08:00into the banks for 70 million dollars worth of personal guarantees and i was in a position where

08:08we had to sell buildings uh that we didn't want to sell just to survive and it was a really really

08:14rough time in fact i thought i was going to lose my house i thought i was going to lose all my my

08:20buildings i thought my investors were going to lose all their money and i decided to fight it out

08:25and keep things going and not let uh the buildings uh go down not not let the portfolio go bankrupt and

08:34i i worked it really hard but for the beginning of the 2008 disaster um i i fell into a depression

08:41because i thought i was a hot shot until then borrowed money made a lot of money my average return on

08:47on 50 of our portfolio is 40 irr that's not bad when the market's going up even an idiot can make

08:58money so a lot of idiots i actually have a story about that and when i did my first flip yeah it was

09:06it was right in the hockey stick and i thought i was a genius but i just really did the flip at the

09:11right time and it's just i look back now i'm thankful because i made you know it was it was a

09:15single family and i made it 86 000 which i thought was like i could retire and uh i but you know

09:21looking back you realize it you i could have done anything at that i could have bought and not done

09:27a single thing to that property and then sold it and because of the market um it really does make a

09:32difference so i just it that story that you're talking about how you kind of you know you got lucky

09:36with the market that uh makes a lot of sense yeah and we did it with a lot of debt so we were making

09:41a fortune we were truly um we were we were uh artificial big shots my partner and i what happened

09:49was we we bought fancy cars fancy homes we were we were millionaires i wanted to belong not to one

09:55country club but to two country clubs because i wanted to have two different golf courses so i

10:00didn't get stuck playing only one let me tell you what happened we bought a building in a town called

10:05niles illinois it was a budweiser distributor was moving out we bought it for three million

10:10and within 60 days i sold it to the next door neighbor for four million so not bad okay so

10:17then here's another one we put a building under contract uh in chicago during this crazy time

10:24when everything was going up and we put it under contract for three and a half million and i found

10:31a buyer accidentally within a week after the contract he came to see the building and he put his hand out

10:39while we were walking through the building to shake my hand and i said what's going on he says

10:43you're going to sell me your contract for a million and a half and you never have to close

10:47i said what it's a good wholesale right there he said he pushed me against the wall and he said just say

10:53yes i said well we bought this to own it forever and he said just say yes so i said yes so that those in

11:02those days when when things are really good everybody wins it's a it's it's not hard it's easy

11:11and you can borrow as much as you want and you can make multiples of your money because there's leverage

11:17but in 2008 the lesson that i learned so that after my depression and after being suicidal truly not

11:24joking because i thought my life was over and that the headlines in the chicago business paper would say

11:30joel freeland fails spectacularly and then i was going to be i would be like there would be a

11:38black mark on me for life and i worked really hard to keep the portfolio from tanking but it took so

11:47much out of me that years later when i started thinking about what the strategy should be next time

11:54so that that doesn't happen again that's when i decided no debt and i found out that there are

12:01investors who will go into a deal with no debt for the long term because they are freakishly risk

12:10averse they don't want to lose any money and i've got a group of those people and that's that's today's

12:18business is buying small class b industrial buildings where the tenants don't leave where the rent goes up

12:24every year and not falling into a disaster if the market crashes because right now there may be a

12:32bubble i think it's a bubble and if it crashes people who have a lot of specifically in in industrial or

12:38just when you say a bubble what do you mean the whole country stock market i don't know when when

12:44someone's going to be watching this in the future but if someone watches this this will not age well

12:49if everything keeps going up and the stock market doubles again like it has in the past few years

12:55but uh i don't think that there's such a thing as a tree grows all the way to the sky and never stops

13:03there's there's gonna be a downturn and during that downturn the thing that we're prepared for

13:09with this no debt program is honestly we don't we don't rely on

13:15the bank being nice enough to finance there's a there's a there's a biblical um it's in proverbs it

13:25says the the borrower is a slave to the lender it's biblical uh it it's it's true and that's what

13:33i found in 2008 they owned me yeah so do you find without using debt and i i like your strategy i i like

13:44the idea of not having debt i don't like uh you know we do a lot of seller financing so we negotiate

13:48with the seller um we we try not to take on bank debt uh but i like the idea of no debt that is it's

13:55really attractive and i feel like it takes a lot of the the stress out of the equation um but i feel

14:00like it would also be a little bit more difficult to get the returns a lot of investors want to see

14:05do you find that's that's still true or um yes yes you're exactly right you're exactly right um if you

14:12throw lighter fluid on a fire it could burn your house down but if you put lighter fluid on your

14:22barbecue it can make you a tremendously good sizzle steak so that's debt it can it can either really

14:30give you something fantastic with a great return or it can take you down and for sure you're right

14:37the returns with no debt are lower and there's nobody else i've looked there's no one else in

14:43the united states there's 4 000 syndicators approximately who have a hundred million dollars

14:48or more in in um in assets and we're just one of them yeah and of those 4 000 there's not a single

14:58other one that i've ever come across who does debt free we're we're unusual and it and it does hurt

15:06it hurts the return there's no doubt about it if someone wants an 18 irr we're not the guys

15:13because if you do shoot for an 18 irr you've got to be doing something that's risky yeah yeah well

15:21yeah i mean there's we're lucky to make 12 to 14 on a good deal if we own it for 20 years

15:28think about it this way if the value of the building goes up five percent a year

15:32that means that it doubles in in 20 years so five percent a year if we own it for 20 years

15:40and our average cash flow yield is 11 and it goes up five percent a year just straight math it's a 16

15:49percent return we don't often do that well usually the buildings go up on average three percent a year

15:55so if our average over 20 years is an 11 cash flow yield it brings us to 14 and that's not a 14 irr

16:02it would be a 12 irr because irr has the time value of money i'm talking about just average annual return

16:1012 to 14 safer is what our guys like but yeah i can't i can't pull the trigger after what i went

16:20through on a riskier deal and i don't think anyone else should do this i don't think people should

16:26invest only in safe safe safe things you need to take risk so people who go in with someone who's

16:31got the debt like you do i strongly support that we're just for like the little corner of somebody's

16:37portfolio that they want to have super safe for cash flow and everything else they should do with

16:42a lot of diversification and take more risk especially if they're as young as you are i'm 66

16:47and at my age i just don't want to end up living in my kid's basement because i blew all my money

16:54being too much of a risk taker that's totally reasonable i understand um so you've mentioned

17:00you've done i think you said 100 and something deals 110 but you you've sold 80 of them um so how

17:06do you know you know i actually just recently went through this there was two small self-storage

17:11facilities i had owned one of the first two that i bought and i just held on to them but my um return on

17:16equity was really low because i bought them for such a good price and i realized that you know

17:21the cash flow they were spitting out was nothing compared to the equity that was sitting in the

17:25deal um and so i finally after years decided to sell these things um but i even then it was really

17:31difficult to get there because i was always you know i always hear all the other investors saying

17:35i never sell never sell never sell um but you you've sold you've sold uh actually the majority of

17:41your portfolio at this point so how do you know when the right time to sell an individual asset is

17:46it's uh it's so hard it is such a difficult decision to make we had a building in a town called

17:56shiller park and we bought it in june of last year for a million 140 and we have a tenant and the

18:06tenant's been in there they're delivered they do delivery for the gap that's that's their business

18:10instead of going to ups the gap has individual regional delivery companies they save money that

18:15way so it's a good company they have 14 locations around the midwest chicago is just where they have

18:23a few of them but they're in indiana and wisconsin so we got an offer from a developer for a million

18:29seven fifty remember we bought it for a million one forty so you look at that and you say okay

18:36we've had it for a year should we sell it i yeah i would i would be hard-pressed not to take that

18:44offer we didn't sell it but boy my partners and i struggled we had meetings we had calls it's like

18:52oh man it's so much it's so much the tenant's lease was coming up and we called the tenant and we said

19:01are you going to renew your lease and we told him that his rent increase was going to be from six

19:06dollars a foot to nine dollars he said go fuck yourselves we're moving out and so we thought he

19:13was moving out so we start negotiating to sell it to the guy at the million seven fifty and the

19:20negotiations got dirty because their lawyer was impossible and it was it was really when i say dirty

19:28i mean just messy you know messy yeah yeah and we're negotiating they want to tie it up for six

19:35more months and they want to do this and they want to do that and ultimately the tenant calls us back

19:40and says hey uh joel um i went and looked at the market and we made a decision we're going to stay

19:46we're going to extend our lease so i had this buyer who was difficult their lawyer was difficult and now

19:53instead of having a building about to be vacant i had a renewal from the tenant

19:58so we had a meeting we have an advisory board of eight very smart people who invest with us

20:04a lot and we said what do we do and they they said to eric and to me are the two were the two

20:10managers of the uh llc they said do what you want to do guys we'll take either one and eric said i think

20:18we should keep it it's still worth a million seven fifty we're just not getting it it's still like what

20:22you said the the equity was trapped in the deal and to cash it out you have to sell it

20:28we think that the equity is still in the deal we still think it's worth a million seven fifty

20:34but we're going to keep it and get the cash flow and maybe sell it another day but imagine how

20:40difficult of a decision that is yeah well and that was the that was the kind of what i ran into is

20:46i calculated it and the return on equity for this deal i think it was like four percent um because the

20:53i just because i just got such a good price and uh so what i'd put into it was like pittance compared

21:00to what it actually turned out to be worth um but i and i knew that if i took that and i leveraged and

21:07you know got bank debt and bought another property took that equity put it into something bigger

21:12i could get a higher cash on cash return um and i just i mean i ultimately decided to do that but i

21:19i just keep hearing you know in the back of my head all those people who say you should never

21:23sell a property you should hold on to it until it's you know until you're 99 years old uh but

21:29yeah i don't know it's a hard decision to make and uh i don't know if i made the right one i guess time

21:33will tell but um but yeah i mean you've you've decided to sell multiple properties so i was kind of

21:38looking to see where when do you know is the right time to sell when do you personally decide that

21:43this is uh this property should be sold we have a uh strategy which is extremely simple

21:52if we can keep the tenant we don't sell no matter what and if the tenant leaves we look at selling it

22:01versus leasing it to a new tenant in our business because they're single tenant buildings the big risk

22:07is a vacancy because it's either 100 vacant or 100 leased so we come up with what we would sell it for

22:13when it's about to go vacant we put it on the market for lease and we are approached all the

22:18time by buyers even though it's not on the market for sale saying would you sell it would you sell it

22:22so we keep a list of the names of the potential buyers and if we don't lease it in the first three

22:28to six months we say how long are we going to carry this monster you know a 25 000 square foot

22:35building costs 20 000 a month to carry um because we got taxes insurance maintenance

22:43utilities fixing it up i mean it's it's it's an expensive carry even with no mortgage so we get

22:51to the point where if it's not leasing we have to decide if we're going to sell it for a profit

22:57in okay that makes yeah yeah that makes a lot of sense so yeah if you're especially with single

23:05tenant if you i mean if you're not cash flowing then you sell um and that yeah that makes a lot of

23:12sense in my mind i was more um have you ever sold a property and sorry we have run down the clock so i

23:17do need to push us on after this question but have you ever sold a property that was doing well it was

23:24actually doing you know in i guess my specific situation have you sold a property that was crushing

23:29it you had a lot your return on equity was very low um and then you decided to sell or if it's doing

23:35well you always keep it regardless no all of the above we every deal is different if we've we've

23:41sold 82 buildings i could give you 82 stories and every single one of them is different than the other

23:47one we never know it's like snowflakes everyone is different we never know yeah it is it's hard to

23:55it's hard to know when to sell and i've sold properties um you know on the in the obverse of that

24:00where uh you know we had a break in and um you you have to decide do you sell and and take the equity

24:06that you have right now or do you you know redo the entire thing and and go back through the the value

24:12add process um so it's always a difficult decision but uh you know you just hope that you make the

24:16right decision in the moment and with that said we have run down the clock it is 24 minutes um so we

24:23need to push us into the quick question round i do appreciate everything you've shared with us i still

24:28had a lot of questions that we want that i wanted to go through so maybe another podcast um but i'm

24:33going to start us off here with the first question and this is about education could be any form could

24:38be a book you've read a conference you've gone to a mentorship program you've been a part of

24:42i just need two specific recommendations one for general life wisdom and then one for real estate

24:46uh general life i would say the four agreements is is a book that i i love which talks about how to

24:54live your if you know it it's a great book uh and as far as education having to do with real estate

25:01and business and so forth um i like seth godin i like his books he wrote the purple cow and he wrote

25:08the dip and he's on a lot of podcasts and he talks about strategy marketing uh what what people should

25:15and shouldn't do and how to think about things differently he's great yeah yeah four agreements i

25:21absolutely love that book um and i've read i've read the dip i have not read the purple cow so i'll

25:26have to pick that one up um moving us on this is the next question is for your younger self so let's go

25:32back to the joel who was uh just getting started out in 1981 with that family office go back to him

25:39look him in the eye give him one piece of advice moving forward if you want the best life build

25:46relationships for life good advice good advice and something that not a lot of people say on this

25:54podcast but i feel like i mean we're all i we always talk about um networking and developing

25:59relationships but we don't talk about keeping those relationships uh over the long haul and that

26:04is you know that is the the test of a relationship if it survives and so um great advice especially for

26:11real estate uh next question is kind of a cop-out for you specifically but i'm going to ask it

26:17anyways uh the united states is a big place there's a lot of opportunity out there give me the single

26:22metro you're most excited about investing in today this is silly but um south florida because of the

26:30weather ah okay winter time and i bought a couple buildings in florida over the years and it i'm so stupid

26:39to live in chicago i should live in florida and own buildings in chicago but i love that i want to buy

26:44more in that market so that i have buildings i can drive to and look at and take care of while i'm

26:49down there i thought you were going to say chicago so it was not a cop-out that's great yeah i uh we were

26:56talking before the show i live in seattle so we don't have the same uh climate as you but i totally

27:01understand the need to want to get somewhere a little bit warmer during the winter winter season for sure

27:07all right next question is about finding deals it all starts with getting in contact with the

27:13seller and pen in that purchase agreement so what is your favorite way to generate leads and find new

27:18deals we have bought three buildings in the last six weeks from cold calling door-to-door and industrial

27:25parks i had a group of uh six summer interns and we went to one town called wooddale where there

27:33202 uh industrial buildings 9.2 million square feet we divided it up six ways for the six uh interns

27:41to each one call on about 33 companies every single day until they got through to the owner

27:46and we ended up from that effort finding two buildings that we actually bought in that town

27:51damn nice cold calling just you can't beat it i've tried all the different strategies i've tried

27:59you know cold or um cold texting i've tried email i've tried mail i've tried whatever you name it

28:05i've done it cold you know pay-per-click facebook ads but nothing beats cold calling in my mind it is

28:10the best way to uh to generate leads cold cold you know door knocking probably would be better but the

28:16problem is it's hard to actually get up get you know get meet the seller when you're door knocking

28:20and like be there when the seller is there and so yeah cold calling we wait for the for the mercedes

28:26or or the fancy car to come during lunchtime to the building and then they go in the side door

28:33not the front door and we we wait and then we approach who looks like the owner of the company

28:39or the owner of the building we say are you the owner of the building one guy was carrying a mcdonald's

28:44bag in and one of my interns said are you the owner of the building he says i am he said good mcdonald's

28:50today he says i love mcdonald's he said would you sell the building he said no go away

28:55the guy went to him seven times after he got to know who he was and finally he said yes

29:01mcdonald's bag classic stakeout i like it all right uh next next question is about lessons learned

29:11not every deal we get into goes the way we expect it in fact uh many times if not every time something

29:17goes wrong and that's when we get to learn a lesson so what was the deal that went a little

29:21bit sideways for you and then what was the lesson you pulled from it

29:25i bought a building that was too big we buy small buildings it was too big so there weren't

29:30enough tenants there's more tenants for smaller buildings i put debt on it should never have done

29:35a big building with debt and i had a one-year tenant who had a lease that was very short and

29:43he could have left or stayed and i assumed that he probably would stay i was wrong and he left

29:48so everything went wrong with it and the building sat vacant for a long time and it was 2008 and i

29:54sold it for a loss we bought it for three and a half million and sold it for two and a half million

29:58i lost a million dollars and the lesson there i'm assuming was the debt the size of the building

30:06the debt uh yeah those two things that's that's what we focus on now smaller buildings no debt

30:13all right um on the obverse of that sometimes there is a uh you know things go right and uh you get

30:21your highlight reel so take us to another deal or your favorite deal i guess uh where everything

30:26kind of went right and uh kind of stuck out in your mind is something you'll remember

30:30i bought a building in elmhurst illinois from the keebler cookie company uh it had a gigantic

30:37parking lot and comcast needed a building in that area with a gigantic parking lot

30:42and they decided that they could sign a 15-year lease which they did and we ended up making a 35

30:51percent annual return on average for 15 years and then sold it two years ago to a trucking company

30:57when comcast left wow that is fantastic that is definitely a highlight reel all right that leads

31:05us hey but when they come you take it and we've said this a lot on the podcast too half of everything

31:11is luck um you just you know it's it's all about volume getting those numbers up and then sometimes

31:16luck's gonna come through the door and you just take it when it comes so there's no shame in that for

31:21sure um next question is about raising money uh does take money in real estate to make money

31:27no questions about that so what is your favorite way to raise capital

31:31referrals from existing investors we get at least one or two a week

31:37nice i like it and that's how you built your 300 300 strong investor investor list um and that i mean

31:47i guess it all starts with actually getting a deal done that gets a good return for those initial

31:51investors and then the snowball starts um and that leads us to the very last question this is for the

31:58listeners you've given us a lot to think about i'm sure people want to reach out get in contact with

32:02you is a two-parter where can they find you and then what can they expect when they reach out

32:06uh our website is brit properties dot com b-r-i-t-1-t properties dot com and they can expect us to give

32:18them a lot of information we have uh ppm's um offering documents for deals that we have open

32:26and we also this is probably an unusual answer everybody needs to know the succession plan of

32:33the people they invest with what happens if the guy dies what happens if he gets sick who takes

32:37over who's in charge how well have you thought that through and i will send them a copy of our

32:43succession plan nice that you know you're the first person to to mention that that's very interesting

32:49um but uh very relevant for 66 i got to think about these things i get it i get it so i will put

32:58that link in the show notes if you guys want to reach out to joel all you got to do is click the

33:02little more in the description it's going to pull down that full description and in there you can

33:06find his links all right man that wraps it up thank you very much for hopping on the show

33:11thank you so much absolutely for everybody who's here with us today thank you guys for showing up

33:18you are the reason we do this so if you guys have any questions reach out to me gabe at the real

33:22estate investing club.com if you guys want to support the show just leave us a review or subscribe or

33:27whatever you want to do other than that hope you guys have a great week keep rocking real estate

33:32and i look forward to seeing you on the next episode

33:34you

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