He Owed $70M in Personal Guarantees. Now He Refuses to Use Debt.

What if the best way to invest in real estate is to skip the debt? In this episode of the Major League Real Estate Podcast, Nate and Tom talk with Joel Friedland, founder and CEO of Brit Properties, a Chicago firm that buys small single-tenant industrial buildings in the Chicago suburbs. After the 2008 crash, Joel rebuilt his syndication business with almost no debt. He shares why debt kills, how a debt-free deal pencils out with a cost segregation example, and how investors can exit in about 30 days. Request a free discovery meeting: https://go.therealestatecpa.com/4nj53KX Join the Hall CPA Team: https://go.therealestatecpa.com/team Submit your questions to: https://go.therealestatecpa.com/question Connect with Joel:   / joel-friedland   The Major League Real Estate podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests. Any mention of third-party vendors, products, or services does not constitute an endorsement or recommendation. You should conduct your own due diligence before engaging with any vendor. 0:00 Intro & Guest Welcome 1:18 Joel's Entrepreneurial Beginnings 3:12 Breaking into Real Estate in 1981 5:48 Philosophies for Today's Real Estate Market 7:43 The Danger of Debt & Lessons from 2008 11:30 Unleveraged Property Returns & Cash Flow 13:22 Cost Segregation and Tax Write-Offs 19:24 Long-Term Tenants and the "Trading Floor" Model (Rule 144) 28:20 When Does Debt Make Sense? (30% Max LTV) 31:43 Keeping Things Simple & Closing Thoughts