Industrial real estate is a specialized sector that requires a unique blend of expertise, resilience, and the ability to navigate challenges. Joel Friedland, an accomplished industrial real estate specialist, embodies these qualities. With decades of experience under his belt, Joel has encountered both the highs and lows of this industry, emerging each time with valuable insights. In this article, we delve into his journey, exploring the trials and triumphs that have shaped his career in industrial real estate.

Meet Joel Friedland

Joel Friedland is a veteran in the industrial real estate space, having started his career in 1981. Specializing exclusively in industrial manufacturing and warehouse buildings, Joel has carved out a niche for himself by focusing on this specific sector. He is the founder of Brit Properties, a company that currently owns and manages 19 industrial buildings leased to a variety of tenants, including major names like the US Postal Service, AT&T, and Instacart.

Joel’s journey in real estate began when he worked for a family that owned 84 industrial buildings. This early experience laid the foundation for his future success, teaching him the intricacies of the industrial real estate market. Over the years, Joel has built a reputation for his deep understanding of the industry, his commitment to his investors, and his ability to turn challenges into opportunities.

The Journey of Trials and Triumphs

In a recent interview on “The Most Dwanderful Real Estate Podcast Ever,” hosted by Dwan Bent-Twyford, Joel shared some of the most significant experiences of his career. His journey has not been without its challenges, particularly during the 2008 global financial crisis, which tested the limits of his resilience and expertise.

Early Beginnings and Industrial Focus

Joel’s passion for industrial real estate was ignited early in his career. He exclusively focuses on industrial properties, a niche market that includes manufacturing buildings, warehouse spaces, and specialized facilities such as laboratories and sports complexes. His portfolio is diverse, with tenants ranging from small businesses to large corporations like Instacart and the US Postal Service.

One unique aspect of industrial real estate is the variety of businesses that can occupy these spaces. Joel notes that his buildings house everything from badminton clubs to HVAC companies. This diversity presents both opportunities and challenges, especially when dealing with tenants of varying sizes and financial stability.

The Challenge of Bad Deals

In the podcast, Joel candidly discussed the reality of facing bad deals, an inevitable part of the real estate business. “There’s no such thing as somebody who’s done a lot of deals that’s never had a bad experience,” he stated. Joel emphasized that risk is an inherent part of real estate, and every seasoned investor will encounter deals that do not go as planned.

Joel’s most challenging period came during the 2008 financial crisis. At the time, he had around 50 buildings with hundreds of investors. The crisis led to some tenants going out of business, which created significant financial difficulties for his properties. This situation was particularly stressful for Joel because, as a syndicator, he had to keep his investors informed and navigate the complexities of the situation under the scrutiny of the Securities and Exchange Commission (SEC).

The Importance of Transparency and Resilience

One of the key takeaways from Joel’s career is the importance of transparency and resilience. As a syndicator managing funds from hundreds of investors, Joel understands the weight of responsibility that comes with handling other people’s money. He believes in full transparency, particularly when things go wrong. “You can’t hide it,” he says, emphasizing the need for honesty in communication with investors.

The last eight days, Joel shared, were among the toughest he had faced in the past five years, as they forced him to relive some of the trauma from the 2008 crisis. However, he also noted that these challenges have made him stronger and more prepared to handle future difficulties.

Lessons Learned and Moving Forward

Through his experiences, Joel has learned invaluable lessons about risk management, investor relations, and the importance of staying focused on your niche. He advises aspiring industrial real estate investors to be prepared for both the ups and downs of the market and to build a strong support network to help navigate the inevitable challenges.

Joel Friedland’s journey in industrial real estate is a testament to the resilience and adaptability required to succeed in this demanding industry. His story offers a wealth of insights for anyone looking to understand the complexities of industrial real estate or seeking inspiration from a seasoned professional who has weathered the storms and emerged stronger.

The Perils of Leverage in Real Estate

One of the key discussions revolves around the use of leverage in real estate. Dwan emphasizes the risks associated with heavily mortgaged properties, especially during economic downturns. “There’s always some risk in anything, but in real estate especially,” she states. Dwan advocates for paying cash for properties when possible, reducing the risk of losing assets during a market crash. She reflects on her own experience of losing rentals due to over-leveraging, which taught her the importance of minimizing debt.

Joel echoes this sentiment, acknowledging that while many have become wealthy by leveraging during boom times, the strategy can backfire in challenging economic conditions. He shares his own harrowing experience from the 2008 financial crisis, where he fought hard to keep his properties. Despite his efforts, he had to sell some assets at a loss, realizing that the long-term value could have been much higher if he had managed to hold on. Joel points out the danger of relying on artificially low interest rates, which many investors took for granted, not realizing that rates as low as 4% were an anomaly.

The Importance of Good Judgment and Self-Awareness

Joel emphasizes the need for self-awareness and good judgment in real estate investing. He suggests that after facing a significant loss, it’s crucial to engage in self-reflection and possibly seek counseling to understand whether one has the resilience to continue in the business. “Good judgment or common sense is extremely uncommon,” he notes, stressing that most people make decisions based on emotions rather than intellect.

He introduces a simple yet powerful tool to help with decision-making: W-A-I-T, which stands for “Why Am I Talking?” This tool encourages individuals to pause and reflect before making impulsive decisions, which can lead to significant regrets. Joel shares that this approach has been instrumental in his personal and professional life, helping him avoid hasty decisions that could have long-term negative consequences.

Coping with Loss and Moving Forward

Both Dwan and Joel agree that experiencing loss is an inevitable part of real estate investing. The key, however, is learning from those experiences and making better decisions moving forward. Joel advises studying what went wrong and making a conscious effort not to repeat the same mistakes. He also highlights the importance of understanding one’s limits and ensuring that any new ventures are approached with caution and careful planning.

Dwan shares her personal growth story, where past mistakes in her personal life, such as impulsive marriages, taught her the value of patience and careful consideration. She draws a parallel between these personal experiences and the importance of not rushing into real estate deals without thorough analysis.

The Role of Luck and Unforeseen Circumstances

Luck also plays a significant role in the success or failure of real estate investments. Joel recounts how unforeseen circumstances, such as health issues or sudden economic shifts, can derail even the best-laid plans. He shares a poignant story about a former business partner who passed away from cancer at a young age, underscoring that not all setbacks are due to poor decisions—sometimes, they are simply a result of bad luck.

Dwan and Joel conclude by emphasizing the importance of resilience, self-awareness, and cautious optimism in real estate investing. They remind aspiring investors that while the allure of quick profits can be tempting, the true test of an investor’s mettle is their ability to navigate through tough times and come out stronger on the other side.

Conclusion:

In conclusion, the real estate market offers a wealth of opportunities, but success requires informed decision-making, strategic planning, and expert guidance. Whether you’re a seasoned investor or a first-time buyer, understanding the nuances of the market and having a clear roadmap is essential for achieving your financial goals. At Dwanderful, we specialize in empowering our clients with the knowledge and tools they need to make confident, profitable decisions. Our team of experienced professionals is dedicated to providing personalized support, whether you’re looking to invest in high-potential properties, sell at the optimal price, or explore new markets.

We invite you to visit our website to explore a wealth of resources designed to help you on your real estate journey. For a more tailored approach, book a consultation call with us today. Let us be your trusted partner in navigating the complexities of real estate and unlocking the full potential of your investments.