Real Estate Lessons That Last W/Joel Kraut
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Episode Description
Welcome to the On The Rise Podcast! In this episode, Jeremy sits down with Joel Kraut, a seasoned investor and lender with nearly 30 years of hands-on experience across single family, multifamily, gas stations, car washes, and specialty-use commercial properties. Joel shares his journey from Wall Street options trading to building a 145-unit portfolio in just 30 months, along with the painful lessons learned during the dot-com crash and Great Recession. He explains the critical importance of due diligence, market awareness, and partner selection when evaluating any deal. Joel also breaks down what makes niche assets profitable, how environmental risks can make or break a project, and why McDonald’s demographic research is one of the simplest tools investors can leverage. This episode is packed with wisdom for both new and experienced investors who want to build resilient, long-term wealth.
Summary
Tip #1: Follow the Wealthy—Real Estate Creates Stability
“Every well-to-do family I studied owned real estate.”
Joel’s first investment was accidental, but noticing the common thread of real estate ownership among wealthy families pushed him to start building a portfolio early.
Tip #2: Leverage Other People’s Money Wisely
“We did 22 mortgages in two years using gap funding from friends.”
Strategic use of private capital helped Joel scale rapidly. Smart leverage accelerates growth, but it requires discipline and risk awareness.
Tip #3: Cycles Matter—Experience Creates Confidence
“When half my tenants lost their jobs overnight, I learned the importance of industry exposure.”
The Great Recession taught him to analyze employer concentration, economic drivers, and tenant stability—not just property cash flow.
Tip #4: Investors Must Slow Down and Think
“People spend more time researching their next car than a $400,000 investment.”
Joel highlights the lack of financial literacy and encourages investors to ask harder questions, understand risk premiums, and avoid emotional decision-making.
Tip #5: Look for Simple Indicators of Strong Submarkets
“If McDonald’s is there, that’s a great sign.”
Joel uses fast-food density, Walmart presence, road construction, and national chains as reliable indicators of rental demand and demographic stability.
Tip #6: Niche Assets Aren’t as Scary as People Assume
“Gas stations don’t blow up in real life. Technology has changed.”
Double-walled fiberglass tanks, strict regulation, and improved safety systems make modern gas stations and car washes less risky than their reputation suggests.
Tip #7: Understand Environmental Liability Before Closing
“If contamination is found after you buy, you own that problem.”
Phase I and Phase II reports are essential. Investors should verify that the operator or GP has conducted proper environmental due diligence, especially on specialty-use properties.
Tip #8: Build Portfolios That Last Through Cycles
“You don’t need a 25 percent crash, but you do need to prepare for real volatility.”
Long-term resilience requires strong sponsors, cash reserves, and realistic underwriting—not blind faith in rising markets.
Tip #9: Choose Partners Who Don’t Quit When Things Get Hard
“Bad partners cost more money and time than bad deals.”
The biggest mistakes in Joel’s career weren’t properties—they were people. Experience, integrity, and grit matter more than glossy branding.
Tip #10: Winning Requires Action and Continuous Learning
“Most people don’t win because they quit.”
Joel emphasizes staying curious, staying plugged into experienced operators, and continually learning from failures. Knowledge compounds just like capital.
Resources and Links
Website
https://www.brrrr.com/
