I sell medical buildings across the US. Think Selling Sunset but with doctors, dentists, and veterinarians. Intel on commercial real estate's booming subsector.
Los Angeles, CA
Joined January 2012
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PSA: If you are a physician DO NOT go into a real estate transaction w/o representation.
Buyers WILL take advantage of you. And you WILL get screwed.
I see physicians leaving MILLIONS on the table almost daily.
Here's one example from today:
The best $4000 I’ve ever spent?
A Doula
Was a godsend for both my wife and myself navigating the delivery process (pre and post as well)
If you’re considering getting one to help with the birth process, just do it.
Have a phenomenal one I can recommend if you’re in LA.
If you walk into any Nordstrom everything is clean, organized, and orderly. Clothes are neatly folded, things are where they belong, and the store is generally spotless.
Now walk into a Nordstrom Rack.
Clothes are thrown everywhere. Piles of shirts and pants are scattered across tables. It's a mess.
Both sell the same product and are operated by the same company, but the stores offer very different experiences.
There's a huge difference in how customers treat the two stores.
People walk into Nordstrom and instinctively treat the store with respect because it's clear that the store is respected, well maintained and has high standards.
At Nordstrom Rack, it's the opposite. They see a mess and feel less obligated to clean up after themselves. What's one more shirt thrown on an already messy table right?
I think the exact same logic applies to many cities across America.
When streets are clean, parks are maintained, and public spaces are cared for, people are more inclined to respect them.
But when litter, graffiti, and general disorder become the norm, people start treating those places much differently because they know they can.
City leaders would do well to learn from Nordstrom's example. Nobody wants to live in a Nordstrom's Rack.
If you're a listing broker every single time a buyer or buyer's broker calls you inquiring about a deal you have to bring your A game.
There is no half effort or anything less than you giving full focus in helping a buyer understand why the building they're inquiring about is a great opportunity.
If you bring your A game 90% of the time, you'll never know if those 10% of buyers you failed to sell could've earned you hundreds if not millions worth of commissions.
I'm always very surprised when I call a listing broker and on the other end I hear a guy/girl who could care less about selling me on their clients deal. Many just seem to want to get off the phone.
You worked your ass off to win the listing. Why wouldn't you work just as hard to sell it? Nobody gets paid for listings.
Whenever I buy a building as a broker myself, I have two options:
1. Ask the listing broker for a cut of their commission to improve my returns a negligible amount.
2. Allow the the broker to keep their full earned commission.
Option 2 has led to brokers sending me countless off market deals that no amount of buyside commission could make up for. The math is pretty simple.
Looking to buy a $1.5M - $4M NNN leased gas station
Cap rate: 5.75% cap+
Fee Simple Ownership
Tenant: Large Corporate Operator
Location: Good to Great underlying real estate
Any State
Have already acquired 2 this year. Need 1-2 more.
All off market deals fully protected.
Tenant suing landlord for drone photos of their property on their leasing brochure because they said “that’s spying”
That’s a first.
Cold calling is only overrated if you don’t know what you’re doing.
If you do, it’s one of the best tools in business.
Here’s a few tips.
Flight attendant: “We’re going to be delayed. One of the tires has a hole, so it has to cool down before they can plug it or it’ll pop when we land.”
Maybe it’s just me, but I don’t need that level of transparency from my airline. Just say “technical difficulties.”
Lie to me.
Gavin wins
Wild 24 hours for AI and lots of different proposals have been made.
TLDR; the only *tangible* new fact is that OpenAI and Anthropic are going to have embedded 3rd party evaluators from unknown organizations with Dario floating METR as a possibility. Having 3rd party evaluators is smart as there is no Section 230 style liability shield for model outputs and showing a “duty of care” will be important in future litigation. Several internet companies might have gone bankrupt without Section 230 so limiting liability really matters.
There are minimal investment implications from this single new fact, but I do think that for anyone who wants a “smoother for longer” cycle then most constraints are good: wafers, watts, real rates and spreads. Excessive regulation is a different matter but I don’t think we are anywhere close to this even if the vector changed over the last 24 hours.
To summarize the events:
Dario made the most maximalist proposal of the weekend: embedded 3rd party evaluators, a national regulatory regime for models beyond a certain capability/ingredient threshold, a broad international regulatory pact between democracies, stricter limits on compute/distillation for China and then a different international regulatory regime that encompasses China. Before there is a national regulatory regime, he wants a Sherman act waiver so that Anthropic can safely coordinate with OpenAI and other frontier labs without antitrust fears. TBF, this latest proposal is much less maximalist than some of his prior proposals like “Policy on the AI Exponential,” where he advocated for an FAA for AI. I believe he is sincere in his beliefs. And despite all the protestations, all of this would also probably be good for his business over the long-term.
Sam agreed that embedded 3rd party evaluators were a good idea and stated they would implement them. Again, this is smart as should help limit future liability.
Elon said “Dario is right” and later specified that “Dario is right that there should be some oversight. Peer review of AI by competitors is the right way to start this off.” This would be a MPAA like self-regulatory structure for AI with regular calls between the labs plus a process where each new model is evaluated for safety by competitors for a 1-2 week period before being released. That is *wildly* different from Dario’s proposal and in-line with what David Sacks has been proposing. Elon also stated that nothing was going to slow down open-weight models.
Demis said that Dario’s essay was a “step in the right direction.” Dario also said that he was also open to Demis’ idea of a FINRA like self-regulatory structure as part of his proposal.
David Sacks had a thoughtful post where he said that Dario and Sam should pace unilaterally, called the antitrust waiver a cartel request and denied that METR was truly independent given their ties to Anthropic.
Sriram Krishnan, former White House AI advisor, noted that it would be important to have the 3rd party evaluators come from independent organizations that are not affiliated with any lab, which is basically an indirect statement about the relationship between METR and Anthropic which Sacks was explicit about.
Clem from Hugging Face said they were open to being a neutral 3rd party evaluator, which is interesting especially if Jensen was consulted before that post.
Alexander Wang from Meta noted that alignment would be an increasing focus going forward.
An executive order seems likely after all this and the language in this EO is going to be really important. It is possible to democratize and distribute AI broadly and safely without centralizing it in the hands of a few corporations who might each become more powerful than any single government.
I do not want a few humans in control of intelligence.
I want us all to have our own intelligences that reflect our own values and human variation in all of its richness.
Intelligence distribution over intelligence centralization FTW.
10% drop in exchange for a viable future?
I’m all in.
AI stocks will drop 10%+ on Monday morning
Brace for impact folks
@DarioAmodei just unwound the AI trade with a blog post
I talk to real estate developers every week.
When I ask where they'd build, most say:
"I’ll build anywhere, except California"
Some of the most risk tolerant investors in our country will not even touch the state.
That's the problem.
Here's the truth: Most brokers are not spending time trying to sell your listing. Even if you hired them to do so.
They're getting a listing, putting an OM together, posting it on 3rd parties (Crexi, Loopnet, etc.)
Then waiting for offers, and when they don't come, they're calling you for price reductions.
We've taken over and closed multiple deals this year because a previous broker wasn't willing to put in the work to sell the deal.
Technology is great, but websites don't sell deals, brokers do.
Physicians who own both their practice and real estate are sitting on two extremely valuable assets. Eight and even nine figure combined transactions are not uncommon.
If selling, you need to structure the lease to maximize the value of both of those assets.
Here's an article myself, @pgphealthcare of Physician Growth Partners, and my partner @RealEstateRahul put together explaining how to do it.
Reach out with any questions.
I know a lot of brokers who entered the business with a six pack and never lost it.
None of them closed many deals though.
It’s hard to overstate how much real estate wealth has been created by buyers with $5M -$10M in liquid capital who can close quickly.
The young boy always gets asked what he wants to be when he grows up.
His answer is always the same. A doctor.
He spends his schooling years fantasizing about the people he'll help and the practice he'll eventually open.
He works hard and studies probably more than he needs to. But it pays off. He graduates top of his class and gets into a great college.
He applies the same work ethic in college and in med school.
After med school he matches with a great residency program.
After residency he joins a local practice back in his hometown. He loves it there but he knows its just a stepping stone.
3 years later, he decides the time has come. He's ready to open his own practice. He can't help but feeling grateful for all the hard work he's put in.
He starts looking for a building to lease.
After months of searching, he finds it. This is the building he's going to change lives in. The one he'll practice in for the next 30 years.
He can't wait to get started. He calls the landlord.
The landlord immediately asks "Do you have a broker?" He thinks to himself. "That's a weird question. Why would I need a broker?"
He tells the landlord he doesn't and asks him to send over a Docusign for the lease. He signs it instantly.
The first few years of practice were about what he expected. Rewarding, but very difficult. But he didn't care, he loved what he did.
By the 4th year he starts hitting his groove. The practice is growing. His staff his happy and his patients keep telling him how much they love his location. Life is good.
One night after a long day of work, he comes home and checks his emails before bed.
He sees an email from his Landlord. He starts reading.
At first it looks like a normal email. Him and his landlord are friendly so he figured he was just checking in with him.
The email starts off fine, but by the second paragraph his entire demeanor changes. He's frozen. He feels like his soul left his body.
He's not sure if he's dreaming. But he knows he isn't.
There's an attachment to the email, so he opens it. In bold writing it says - TENANT EVICTION NOTICE
But how? How could this happen? How could he get evicted? He's always paid his rent on time. He's been a great tenant. He has a lease! Right?
He reads the rest of the email.
The email states that his current lease is expired and since there are no tenant options to renew the landlord now has the right to evict him.
He thinks that can't be true. He's sure he has options. He remembers telling the landlord he wanted options to extend!
Frantically, he looks through his Dropbox. Eventually he finds his lease.
His fears are confirmed.
It states - Tenant Options: NONE
He's at a loss for words. He realizes that he was in such a hurry to get a building and fulfill his childhood dream that he barely read the lease before signing it...
6 months later he's in the final stages of moving his practice out of the building. The pain of his error is finally subsiding and he's eager to find a new space to lease.
He's driving down the road and sees a nice looking medical building. There's a sign out front that says "For Lease".
He immediately picks up the phone and dials the number on the sign. The landlord answers.
Him: Hi is the building you have for lease still available?
Landlord: Yes it is
Him: Great I'll have my broker call you!