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How Half of Real Estate Brokers Could Disappear w/ Rod Santomassimo · Real Estate Investing with RealDealCrew

• 0:00
  Most investors selling a building think they've got a good price.
• 0:02
  They have no idea they left six figures on the table,
• 0:06
  and today's guest has watched it happen over and over again.
• 0:10
  In this episode, you'll learn the one question that separates a sanity play from
• 0:15
  a vanity play when pricing a sale,
• 0:17
  the biggest low-hanging fruit investors miss before they even list a property,
• 0:23
  And how AI tools are doing weeks of underwriting work in minutes,
• 0:27
  work that usually took an analyst days.
• 0:30
  Rod Santomassimo is the founder of Massimo Group,
• 0:34
  a five time best selling author,
• 0:37
  and he just wrote Selling Buildings with Bob Knackle and a broker who
• 0:42
  has sold more commercial buildings than anyone in the country.
• 0:47
  If you want to build systems for your investing business,
• 0:50
  check out RealDealCrew.com. Let's get started.
• 0:58
  Rod Santomassimo joins me here today.
• 1:00
  You can learn what he can help you with by going to Massimo.coach.
• 1:05
  I'm gonna have that as a clickable link in the show notes.
• 1:07
  Important there, it's dot coach,
• 1:09
  not dot com or dot org or anything else.
• 1:11
  So Mossamo.coach. I really appreciate your time here today,
• 1:16
  Rod.
• 1:16
  Jack, pleasure pleasure being here.
• 1:18
  I I I I love I love the conversation we're about to have and I can't wait
• 1:21
  to learn while we're doing it.
• 1:23
  Yeah, I'm looking forward to this.
• 1:25
  So first of all, you got a couple books that you published.
• 1:28
  One of them is brokers who dominate,
• 1:30
  and the other one is selling buildings.
• 1:32
  We're gonna focus more on the second book because I think that's probably what
• 1:37
  my audience is gonna be the most interested in.
• 1:39
  But I'm always interested in like what possessed you to write a book.
• 1:44
  I I can't actually think of a more torturous process,
• 1:47
  to be frank, let alone writing two of them.
• 1:51
  What possessed me to write a book?
• 1:52
  That that's a great question. You know,
• 1:55
  Jack, it was a couple of things.
• 1:57
  First, I've written now I've written five books in in all.
• 2:00
  Blessed to have all of them being bestsellers,
• 2:03
  which we're really happy about.
• 2:04
  But the first one, Jack, was more of a of a,
• 2:07
  as my camera goes crazy, I apologize.
• 2:08
  The first one was more of a essence of survival.
• 2:11
  That was the first, that was the first reason.
• 2:12
  George started the company 2008,
• 2:15
  2011. I'm thinking, I gotta do something else.
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  I mean out the Great Recession,
• 2:20
  business was not thriving. So I said,
• 2:22
  why not write a book? Write a book about Target to my audience,
• 2:25
  which is commercial real estate brokers.
• 2:28
  And that allowed us to get a presence in the marketplace and really
• 2:32
  was a catalyst to our exponential growth over the last now,
• 2:35
  well, now it's been 18 years in total.
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  so that was one reason. Then I started realizing,
• 2:39
  man, this book thing's pretty cool.
• 2:41
  I enjoyed it.
• 2:42
  my third book, Knowing Isn't Doing,
• 2:43
  became the number one sales book in the country,
• 2:46
  which I was really thrilled about.
• 2:47
  And then my last book, I really had a desire to do a project work with
• 2:52
  my longest-term client and one of my dearest friends,
• 2:56
  Mr. Bob Knackle, who is who sold more buildings in the United States than
• 3:01
  any other broker. I think as of today,
• 3:03
  he's 2409. and so we wrote a book about how
• 3:08
  To sell buildings from an investor perspective,
• 3:10
  but also from a broker perspective.
• 3:12
  And we mesh the two and it turned out to be a a great project.
• 3:16
  Yeah, well I I I underestimated you up to five books now,
• 3:20
  all many of which are are best sellers.
• 3:23
  Like what are some of the most surprising things you learned through that process
• 3:27
  of writing books?
• 3:28
  It's hard. Number one. It's really hard.
• 3:30
  I I know today you can write a book in literally five minutes of
• 3:35
  two thousand pages using Chat GPT.
• 3:37
  I I understand that completely.
• 3:39
  But I think the best books will always be written without AI.
• 3:44
  I think they're they're deeper,
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  they're thought out, they're than if you could craft a thread and a story behind
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  a book. I I think that's what I learned.
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  It's hard and it's it's long and you can never
• 3:55
  Never expect a book to go as you thought it would.
• 3:57
  Whether it be from the writing stage or the publication stage
• 4:00
  or the marketing stage, the selling stage.
• 4:02
  It's always no matter how many books I've written,
• 4:05
  it's always harder than I thought it would be.
• 4:08
  Mm-hmm. So would you mind spending a little time?
• 4:11
  You said you wrote a sales book around knowing isn't doing.
• 4:14
  Maybe talk a little bit about what what drove the title of that book
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  and what were you trying to accomplish there?
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  Well, at the time I was thinking,
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  and I I haven't done it yet, at the time I was thinking I was gonna expand beyond
• 4:25
  commercial real estate brokerage for our coaching services and and why
• 4:30
  not write a sales book that would ex allow us to expand to other niches.
• 4:34
  That was the true objective of that initial that that third book.
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  But I really enjoy what I'm doing in this niche and we continue
• 4:41
  to grow exponentially, so I never have.
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  But that book was the lessons I've learned from coaching thousands of people.
• 4:48
  What's the difference between someone who's a in in our world an average producer
• 4:53
  to a to a top producer? And what is it?
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  And it's a it's not their it's not really their skill set.
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  It's not. It's not their knowledge or their competence.
• 5:02
  It's not. It's those that do. It's very simple.
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  Everyone knows what to do, right?
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  I I know what I'm doing. I hear that all the time from prospects and clients.
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  I know what I'm doing. Well, but you're not doing it.
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  So I wrote that book specifically.
• 5:16
  That one was not a real estate book.
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  That's a general sales business book.
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  Was to say, okay, if you want a goal done,
• 5:23
  this is how you get it done. We broke it down as an owning a company,
• 5:27
  sales, marketing, finance operations,
• 5:29
  and even HR, step by step. That is a manual of how to truly grow a business.
• 5:34
  And that's what we use at the Mossmo group,
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  specifically with our clients.
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  And that's why our clients have so much great success.
• 5:42
  Yeah, the reason I asked is because,
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  you know, this is my wheelhouse when it comes to getting things done
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  and implementing some tools to to help with it.
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  Because we all know the the importance of follow up,
• 5:53
  but we all know the importance of networking and marketing.
• 5:56
  It's the actual activities that people seem to be resistant to that sometimes
• 6:02
  you need a little push.
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  Sometimes a lot of times you need a little push,
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  maybe not want it. I think it was the great John Wooden,
• 6:09
  a basketball coach from UCLA back in the 60s,
• 6:12
  70s, who said the role of a coach is to make you do what you don't want to
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  do to get what you want to get.
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  And it's uncomfortable. It is.
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  So doing is uncomfortable. Doing is very uncomfortable.
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  Investors generally know what they need to do,
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  even the research of the properties,
• 6:31
  the due diligence of the properties.
• 6:32
  The orchestration, once they own the assets,
• 6:35
  but it's a lot of work. But you still got to do it to get the results you want.
• 6:39
  So the the current book, the selling buildings maximize prices
• 6:44
  and profits in commercial real estate.
• 6:46
  Can you talk a little bit about that?
• 6:49
  What what drove you to write this latest book and we probably should spend quite
• 6:55
  a bit of time on the maximizing prices and profits piece of it.
• 6:59
  Yeah. So I as I shared, I I aligned myself with this top and top broker
• 7:04
  on the planet, Mr. Bob Knackle.
• 7:06
  and we said, okay, how can we get a message out for our audiences?
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  His his was investors or his investors and mine is brokers to share
• 7:15
  how they're the practice of selling buildings.
• 7:16
  So from my perspective, it was all about if you're brokering a cell,
• 7:21
  this is the right steps to take to get the listing,
• 7:23
  to sell the listing, to
• 7:25
  Leverage the listing. And from his perspective,
• 7:28
  if you're gonna sell your buildings,
• 7:29
  here are the key things you wanna make sure you do before you put it to market,
• 7:34
  take it to market, position it for marketing and getting the maximum price.
• 7:38
  So that was the essence of the book.
• 7:40
  Mm-hmm. Well, let's talk about some of these things.
• 7:43
  Like from what you know of what Bob would instruct on how to get a property ready,
• 7:49
  but then more importantly on a brokerage,
• 7:51
  because I I get some properties that are sent to us.
• 7:55
  And a lot of the stuff that I've seen is typically I'm gonna pick on proformas,
• 8:00
  for example. A lot of that pro forma information is pie in the sky,
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  dreamy type type
• 8:07
  concepts in in hopes to sell me on what the potential could be instead
• 8:12
  of what is actually going on. Like talk talk a little bit about what what needs
• 8:17
  to be done or some low hanging fruit to get things going.
• 8:20
  Yeah.
• 8:22
  Some some low hang some low-hanging fruit,
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  which you your investors, they all hopefully understand this.
• 8:26
  You you have to reflect and present an accurate picture of the asset.
• 8:31
  You must. Any secrets in the closet,
• 8:34
  anything that's going on, we're gonna find out.
• 8:37
  We just are. And the book goes into some pretty bad secrets that people
• 8:41
  try to hide and bob and let it happen.
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  But you just tell this paint the picture,
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  tell the story.
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  You have no idea. I mean, you truly have no idea what the buyer's perspective
• 8:52
  is of that asset. Now, if it's a triple net lease asset shirts based on
• 8:56
  the cap rate and return, everything else,
• 8:58
  but you don't know. Perfect example:
• 9:00
  Bob went to sell one of his first buildings,
• 9:02
  and the day before the closing,
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  Jack, the building went on fire.
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  So he said, This isn't going to close.
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  He just said this this is now not going to close.
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  Not really recognizing back then,
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  this was early in his career.
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  That the buyer was going to demo the building anyway to put up an X-ray facility,
• 9:19
  which needed certain concrete foundations over a subway to get it done to code.
• 9:24
  So the building was not the issue,
• 9:26
  the location was the issue. And his lesson there was:
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  you don't know the buyer's true motivation.
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  And you may think you do, but you really don't know the buyer's true motivation.
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  And you may never know the buyer's true motivation.
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  So present the property in the accurate light that it should be.
• 9:43
  That that is a core principle of the book.
• 9:45
  Yeah, I I can't stress that enough.
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  It like you said, it's there's nothing worse than finding the skeletons
• 9:52
  in the closet. And you know, this is kind of one of those things we
• 9:56
  we flip houses in in our area and we've been actually toying with the idea
• 10:02
  of even hiring a inspector to come in before we do
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  a rehab to kind of get nitty gritty and and then provide that as our
• 10:13
  our punch list when we are going throughing the rehabs and repairs
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  and then presenting like a before and after photo f from from that,
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  trying to be like super transparent associated with what we're doing.
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  Absolutely. a hundred percent.
• 10:28
  Then now when you're just flipping houses,
• 10:30
  your investors also when they're flipping,
• 10:32
  you're you're when you're disposing those assets with a broker or without a broker.
• 10:36
  Which one is it, Jack?
• 10:37
  With a with a broker.
• 10:39
  Why do you use a broker?
• 10:40
  Well, th th the the reach is way better.
• 10:43
  The marketing is way better. It takes more things off of my plate.
• 10:48
  I mean it it's it's one thing after another.
• 10:51
  I mean we're a strong believer in using people that are have the expertise where
• 10:55
  we don't.
• 10:56
  Right. And you said that's something we also stressed in the book,
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  and Bob stressed in the book. Look,
• 11:00
  he he's an advisor versus a broker.
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  He'll tell you when not to sell and when to sell based on the market conditions
• 11:05
  and regulations and what's going on.
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  And in his landscape of New York,
• 11:09
  Manhattan specifically, there's so much even today.
• 11:12
  I talked to him this morning and we were talking about the recent
• 11:15
  the primary results that happened today in New York,
• 11:18
  which were surprising, but they were they were they were what they were.
• 11:21
  But that's gonna impact now r rent restrictions and everything else.
• 11:25
  My point is sharing that as an investor,
• 11:27
  you have to understand the landscape on which you're offering
• 11:31
  a property or operating a property beyond the financial mechanism.
• 11:35
  There's so much more that impacts your property behind these financial elements that
• 11:40
  you focus on. And I see too many investors again and again just saying,
• 11:45
  I just want to get this at the maximum price.
• 11:47
  And they don't realize the market has shifted three months ago.
• 11:50
  And the maximum price is not what they believe it is.
• 11:54
  Yeah. That's another great aspect of of getting a broker involved.
• 11:58
  You just have a way better pulse on on what the market conditions are.
• 12:03
  You know, you're we're talking about months,
• 12:06
  if not in some cases, a year or more of a rehab project.
• 12:10
  the sh the market can shift pretty drastically even in in a brief amount of time.
• 12:16
  There look, there's I'll give you an example.
• 12:19
  I got this is this is true story.
• 12:21
  I got this letter yesterday in my mail.
• 12:22
  It was a threat of a suit, because it's something we have on
• 12:25
  our website which somehow breaks a California code.
• 12:28
  It was someone, some serial sewer,
• 12:31
  right guy. And so I've never been sued in all all my years of Massimo,
• 12:35
  ever. So I've I laughed, but I said to myself,
• 12:38
  Do I want to handle this myself?
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  Or do I should I call an attorney just
• 12:42
  Because, right? Look, like an investor,
• 12:45
  you might say, I know it's my business,
• 12:47
  it's my property, I'll just handle it myself.
• 12:48
  But this is a whole different thing.
• 12:52
  It's not my expertise. You selling a property,
• 12:55
  not you, Jack, you are, but investors in general,
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  their expertise is not in selling properties.
• 13:01
  It isn't. It may not even be in buying properties.
• 13:04
  It may not be. So to go without true representation is just you're leaving
• 13:09
  so much money on the table.
• 13:11
  And we see it again and again and again throughout the country.
• 13:14
  We have we have brokers in Australia,
• 13:16
  South Africa. We see it throughout the world where where clients say,
• 13:19
  I'm good, I got it, and they're leaving millions,
• 13:22
  hundreds of thousands of million dollars on the table.
• 13:24
  Well, y let's let's dive into that a little bit.
• 13:27
  Like what are some of those things that maybe people aren't aware
• 13:30
  of that are leaving money on the table?
• 13:34
  Sure, number one, not get not getting a fully true competitive bid process in place.
• 13:39
  That that's definitely number one.
• 13:41
  If someone walked up to me today and said,
• 13:43
  right, I'll buy your car, I would say,
• 13:45
  sure, for the right price, you could take my car.
• 13:47
  But if they're willing to pay that price,
• 13:49
  who's willing to pay higher? You just don't know until you put it
• 13:53
  out to the marketplace. Too many owners refuse,
• 13:57
  they say, it's too much of a pain in the butt.
• 13:59
  I mean, would you sell your house to without a a realtor?
• 14:03
  You probably wouldn't, because you recognize the power of the marketplace.
• 14:08
  You recognize capitalism, which I love capitalism.
• 14:11
  So some investors don't feel I don't want to bother with it.
• 14:14
  It's a good price. I feel good about the price.
• 14:17
  I'm going to do it. And that's when we talk to all the time,
• 14:21
  Jack. You gotta ask yourself the question is this a vanity play or a sanity play?
• 14:26
  Too many investors work on the vanity play.
• 14:30
  They do. I'm gonna get this price.
• 14:32
  Or I'm gonna buy that building at that price,
• 14:34
  wherever it calls me. That vanity play never works out well.
• 14:37
  You gotta ask yourself as an investor,
• 14:40
  which one is it right now that I'm I'm pursuing?
• 14:43
  The vanity play or the sanity play?
• 14:45
  And you're if you ask yourself that question,
• 14:47
  most will go back to the sanity play and make the right move.
• 14:51
  Yeah, it's it's kind of funny.
• 14:52
  I you know, this is one of those oddball things when it comes
• 14:55
  to real estate investors. You know,
• 14:57
  we're talking about properties that are valued at,
• 14:59
  you know, in some cases millions of dollars,
• 15:02
  and then we will skimp out on leveraging some of the things that we need to.
• 15:08
  You know, whether it is taking your property photos with a with your f cell phone or
• 15:14
  not l leveraging legal advice when you need it or or what have you.
• 15:18
  It's just like I I I don't know what the deal is,
• 15:21
  but we sure seem to wanna cut corners where it's probably gonna have
• 15:25
  the the some big impact.
• 15:28
  So Jack, where have you seen the biggest corner cut recently?
• 15:30
  Well, I would say I I say the legal thing because every once in a while,
• 15:34
  like I've seen people would get an a letter like what you just received
• 15:39
  and take a photo of it and throw it into Claude or Chat GPT and and and and and have
• 15:44
  I did it.
• 15:46
  it becoming your legal counsel.
• 15:47
  I it's probably not the best move.
• 15:50
  No, that's exact now. Did I take the letter I got yesterday and put it into
• 15:54
  the claw and get it explained to me so I understood it better?
• 15:56
  Yes, of course. But doesn't mean I'm not going to go without an attorney.
• 16:01
  But we see investors do that, right?
• 16:04
  I'll have I'll have my legal counsel and as soon as you see we see these.
• 16:07
  As soon as you see the document with the with the double dash,
• 16:11
  this is written a this is an AI document.
• 16:14
  Come on, we all know it is. So yeah,
• 16:16
  Yeah.
• 16:17
  that's a big
• 16:18
  cost cutting effort, the effort cutting effort.
• 16:20
  That's the that's some doing, but not really good knowing.
• 16:24
  It's not.
• 16:25
  Yeah. Just to remind everybody,
• 16:28
  we are talking to Rod. You can learn more at masimo.coach.
• 16:32
  I'm gonna have that as a clickable link in the show notes.
• 16:34
  If you found some value in what we're chatting about so far,
• 16:37
  do us a favor. Share this with one of your friends if you're watching us on YouTube.
• 16:41
  Give us a like and subscribe. So,
• 16:44
  you know, since you're on the brokerage side and we have broached the AI subject,
• 16:48
  where are you seeing AI implemented or what are you using it?
• 16:51
  How are you using it today?
• 16:53
  Yeah, well, from a broker's perspective,
• 16:55
  this has gone on for over a year now.
• 16:57
  Our our our coaching clients, we integrate a an AI platform for them where they
• 17:02
  can they can reach out. Look, they'll get a listing.
• 17:05
  Look, they'll get a listing from an an investor like your audience.
• 17:09
  And so Jack, I'll put your scenario.
• 17:12
  This I'll show exactly how we use it.
• 17:14
  So you have two brokers you're interviewing.
• 17:17
  One says, I need an I need a 12-month,
• 17:19
  six month, twelve-month exclusive.
• 17:22
  We're gonna do A, B, and C. We're gonna get your property sold.
• 17:24
  You're gonna say, great. Then broker B comes in.
• 17:27
  I need a one-month exclusive. We're using AI to get this out to everyone
• 17:30
  and using our text bots and AI bots to talk and communicate with everyone,
• 17:34
  get some information information they need to make a more educated decision.
• 17:37
  I'll be talking to them personally as well.
• 17:39
  All I need is one month. So,
• 17:42
  Jack, which one are you gonna decide to use?
• 17:44
  Right?
• 17:46
  Well, the second one sounds pretty good.
• 17:49
  Yeah, because in 12 months, where's that property going to be worth?
• 17:54
  What's going to happen? What what legal issue or political issue or weather issue
• 18:00
  is going to impact us to impact your price of the property?
• 18:03
  Time is money. So how we use AI is we help our brokers leverage their networks
• 18:10
  and yes, technology where text bots,
• 18:12
  phone bots, we have it all in compliance.
• 18:15
  Can call on investors, share the property parameters,
• 18:18
  see if there's an interest, schedule calls with investors,
• 18:22
  schedule calls with property tours,
• 18:24
  all within minutes and/or or hours or weeks versus weeks,
• 18:30
  months, and days. That's here today.
• 18:32
  And so as an investor, you have to ask your broker,
• 18:35
  help me understand. That's how Chris Foss would say it from Never Split
• 18:40
  the Difference. Help me understand.
• 18:42
  How are you leveraging AI today to my benefit?
• 18:46
  That's the question every investor needs to ask.
• 18:48
  And they better understand that broker can articulate a true advantage versus some
• 18:54
  mumbo jumbo and say, prove it.
• 18:56
  Show me you've done it before and then see what happens.
• 18:59
  Yeah, that's really interesting that you bring it that way because,
• 19:01
  you know, in the world of what I see as AI slop,
• 19:05
  there are these outliers that are actually implementing these things
• 19:10
  and actually moving the needle on some stuff.
• 19:12
  And and you've you've given a great example there.
• 19:14
  ~ yeah.
• 19:15
  Yeah. Yeah.
• 19:16
  They it's w it's folks you may not believe this,
• 19:18
  but yes, with investors are having conversations with text bots and call bots
• 19:23
  and and while you're asleep and worrying about your property,
• 19:26
  others are being told about your property and showing if there's an interest or not.
• 19:30
  Yeah. You've you've already kind of touched on on the current economy
• 19:36
  and what's going on. You you mentioned New York.
• 19:38
  Do you have any outlook currently or what is the market look like that
• 19:44
  we should be aware of?
• 19:45
  Well yeah, see that's the that's everyone asking Rod,
• 19:48
  how's the market? Because we have clients in
• 19:49
  Yeah, gotta ask that.
• 19:51
  yeah, right. In every major city,
• 19:53
  every secondary city, and many tertiary cities,
• 19:56
  including Sydney, Australia, and South Africa.
• 19:59
  So the market is local. I would always say the market is so localized
• 20:04
  in more than any ever before. The political spectrums are happening
• 20:08
  in this Manhattan yet as of last night and several months ago.
• 20:12
  Are completely different than what's happening in Lubbock,
• 20:14
  Texas, or in in your state. It just is.
• 20:18
  So while we still see excellent velocity from an investment perspective
• 20:23
  in different product types, multifamily is not where it used to be
• 20:26
  in most markets because of cap rates and interest rates.
• 20:29
  We understand that, right? And retail has come back,
• 20:32
  and no one ever thought it would at one time.
• 20:33
  Office of all things, office on some places are coming back,
• 20:38
  right? The the idea of the
• 20:40
  back to work, that's starting to fade out a lot in most major cities.
• 20:44
  So it depends on product type,
• 20:45
  depends on market. And yeah, within that market and product type,
• 20:49
  depends on the political and legislative wins that are happening.
• 20:52
  Yeah, it's it's just kind of like in my market it it's it's an o it seems
• 20:55
  to be an oddity. Like I got you know,
• 20:58
  we have like some strip malls that were built,
• 21:01
  like even during COVID, they they're still sitting empty.
• 21:04
  But then you go downtown, there's kind of a revitalization going on,
• 21:09
  and there's there's kind of a a bit of this movement to not only getting back
• 21:15
  to the offices, but actually getting back and supporting the local retail stores.
• 21:19
  Excellent. Some some of your investors listen to this are going,
• 21:22
  that's not happening in my market,
• 21:24
  right? That's
• 21:24
  Yeah.
• 21:25
  why it's so low class. It's just it just is.
• 21:28
  Well, I was pointing that out because it's so localized that,
• 21:31
  you know, it's like I said, you got these brand new strip malls in the
• 21:36
  new a newer part of town that still sit bare.
• 21:39
  And then you you got people kind of scrambling for positioning
• 21:44
  or jockeying for position downtown where there's no parking and there's
• 21:48
  and it's all a bunch of old buildings.
• 21:50
  Yeah. Yeah. And that's that's a dilemma for most cities,
• 21:53
  by the way. What are we gonna do with these?
• 21:55
  I mean, it's it's definitely happening in the major cities,
• 21:58
  but these dilapidated, obsolete structures,
• 22:01
  right, that don't meet codes today.
• 22:03
  Can convert them as we all need as we heard yesterday with as a recording,
• 22:08
  we all understand it's now our Congress does as well,
• 22:11
  the issues we're having with housing.
• 22:14
  So is that an opportunity for there as well from an investor?
• 22:16
  It's happening in New York, right?
• 22:18
  And I and New York and other states,
• 22:19
  I just know because I was talking to my New York clients so much this week.
• 22:22
  repositioning of assets,
• 22:26
  obsolete assets to housing, residential,
• 22:30
  it's something if your community and legislative allows the
• 22:34
  tax abatements to happen, is where we're gonna see more and more of it.
• 22:38
  Just is.
• 22:38
  So I I hate to pull this back to the AI conversation again,
• 22:41
  but have you been leveraging it or do you have any tips on how to leverage
• 22:45
  it for underwriting properties,
• 22:48
  maybe even prospecting, anything there?
• 22:50
  Yeah, I'll tell you, Jack, I was lucky.
• 22:53
  in November 2022, some kid called me up,
• 22:56
  a kid I knew. he was half my age.
• 22:58
  He said, Hey, Rod, can I do you mind jumping on Zoom?
• 23:00
  And I said, Hey, I'm really busy.
• 23:02
  How long is it gonna take? And he said,
• 23:03
  Give me 10 minutes. I said, Okay,
• 23:05
  you got 10 minutes. And he showed me in November 2022 Chat GPT.
• 23:10
  And Jack, I said, I need to hang up.
• 23:13
  And I went to my wife and I said,
• 23:15
  the world just changed. I mean,
• 23:17
  I don't know why I knew it.
• 23:18
  But I I I just knew it. And so every day since November twenty-two,
• 23:23
  I have studied AI and I've implemented AI.
• 23:26
  And I use it, I use it to it every day.
• 23:29
  There's no doubt about it. So,
• 23:31
  you know, the the Chat GPT is still a phenomenal platform.
• 23:36
  It absolutely is. And it's not going anywhere.
• 23:39
  Its capitalization value is ridiculous.
• 23:41
  It's not going right yet, right?
• 23:43
  Anthropic and clawed.
• 23:46
  Is the new flavor of the month and what it's doing and what you can
• 23:49
  do with Claude and Anthropic from a financial perspective,
• 23:53
  a modeling perspective. What took you to underwrite a deal,
• 23:57
  to give it to an analyst, to take days,
• 24:01
  give the assumptions to Claude.
• 24:03
  It will create a worksheet, Excel worksheet for you in minutes.
• 24:07
  It will.
• 24:08
  All those elements and deviations of Claude in the anthropic platform
• 24:12
  are just absolutely phenomenal.
• 24:15
  If I was going to be marketing a building,
• 24:17
  I'd be using Claude, of course,
• 24:19
  for the data, but I'd be using tools like chat images.
• 24:23
  But now, as of last week, Google,
• 24:26
  Notebook, LM, cinematic video,
• 24:30
  unfreaking believable. By the way,
• 24:32
  that's free. Unbelievable.
• 24:35
  and then for market data, I still rely on perplexity besides CoStar and LoopNet.
• 24:39
  I'll still rely on perplexity as a third-party platform for re deep research.
• 24:45
  But you put all those together for less than a hundred bucks a month.
• 24:49
  That's a beautiful thing. Every tool I just said,
• 24:51
  you can have all of them for less than a hundred bucks a month.
• 24:53
  If you want just one, my recommendation is go get yourself
• 24:57
  an anthropic clawed account today.
• 25:01
  Yeah, this is this is one of those things too.
• 25:03
  I I I actually did a webinar earlier today and it was to compare Claude
• 25:08
  and Chat GPT. And I told people that you're silly not to be subscribing to both.
• 25:15
  Like
• 25:16
  Yeah, absolutely.
• 25:16
  it it's it's
• 25:17
  it's it's like at at twenty dollars per subscription per month,
• 25:22
  there isn't that's like the cheapest return on investment that you're you're gonna
• 25:26
  make.
• 25:27
  Outside of an audio book or something.
• 25:30
  And and and and and okay, but here's the thing.
• 25:32
  What have you ever spent in your lifetime,
• 25:35
  in your lifetime for twenty dollars a month that has more power than an AI platform?
• 25:41
  There's nothing. Nothing. I mean and and Jack right talk.
• 25:43
  There is nothing. There's nothing.
• 25:45
  Like to the point where
• 25:46
  you're you you can actually build an app to replace something.
• 25:50
  Like for twenty for twenty bucks,
• 25:52
  think about
• 25:52
  Well.
• 25:53
  that.
• 25:54
  Well, then if you want to build an app,
• 25:56
  I'm surely if you want to build an app,
• 25:57
  then what I didn't mention it,
• 25:58
  well, I use it all the time, I should mention lovable,
• 26:01
  lovable dot AI is an amazing app producer.
• 26:05
  It just is. Having an app in your pocket for anything.
• 26:07
  We build financial analysis apps for clients,
• 26:10
  for their clients, their investor clients.
• 26:12
  It's incredible. But here's the thing,
• 26:13
  Jack, and like everyone truly understands.
• 26:15
  People some people are scared of AI.
• 26:17
  I I get it.
• 26:18
  I get You know, if you watch the Terminator,
• 26:20
  it's a scary thing. It is.
• 26:22
  Mm-hmm.
• 26:23
  But the fact is, the of the date,
• 26:27
  I won't mention the date we're recording this,
• 26:28
  but today's date. This is the worst AI is ever going to be.
• 26:34
  It is. And tomorrow it's
• 26:36
  Mm-hmm.
• 26:37
  gonna be better. And the next day's gonna be better.
• 26:39
  And that's that's the that's our future,
• 26:41
  folks. Is it scary? Yes, but you have to,
• 26:44
  you have to adapt, adopt.
• 26:47
  You gotta you gotta start understanding and utilizing AI or you're gonna
• 26:52
  be left behind. It's just where we are.
• 26:54
  It's so fast.
• 26:55
  Yeah. It's it's one of those adages that's that's becoming pretty prominent
• 27:00
  is that you're not gonna be replaced by AI,
• 27:03
  but you will be replaced by somebody who's using it.
• 27:07
  It's it's just the bottom line.
• 27:08
  You
• 27:08
  So
• 27:09
  will. But I will say this. Right now in the United States is a hundred
• 27:13
  and depending on what source you want to believe,
• 27:14
  let's say there's a hundred thousand commercial real estate brokers.
• 27:18
  I'm not talking resommercial and people dab commercial.
• 27:20
  I'm talking pure commercial real estate brokers.
• 27:22
  That's our audience. Only a hundred thousand.
• 27:24
  With AI today, that number might be split in half within the next five years.
• 27:31
  That that that they will replace because a lot of the functions of a broker.
• 27:36
  will be replaced by AI and there'd be less need for the human element versus
• 27:41
  the knowledge element. That's that's that's natural.
• 27:45
  That will also probably be true for accountants and for lawyers.
• 27:48
  We all thought that the worst things can happen was the the blue collar worker would
• 27:53
  would would be evaporated by technology.
• 27:56
  That was always the right the factory worker be gone to automation.
• 28:00
  And yes, that has happened. No doubt about it.
• 28:03
  But the scale of
• 28:05
  white collar service oriented positions that will be,
• 28:08
  well, abandoned by the use of technology,
• 28:13
  that's the scary part. It it is.
• 28:16
  Yeah. No, I completely agree.
• 28:19
  Well, again, I'm just gonna remind everybody massimo dot coach.
• 28:23
  You can find more information there.
• 28:25
  Before we start diving into the rapid fire and closing this out,
• 28:29
  is there anything else we should have tried to hit on?
• 28:31
  No, I I'm excited about the rapid fire.
• 28:33
  I gotta make sure I can adjust my seat and I can do it.
• 28:37
  Well, here we go. What lie do real estate investors often tell themselves?
• 28:41
  So you can get a higher price.
• 28:42
  If you could go back in time and give your younger self one piece of advice,
• 28:46
  what would it be?
• 28:48
  Get coached earlier than I did.
• 28:50
  Yeah. Like expound on that a little bit.
• 28:54
  I didn't I didn't you know, it's hypocritical.
• 28:56
  I started the Mossimo group and I didn't hire a coach to help me until
• 28:59
  our sixth year in the business.
• 29:02
  And it was like a and after by the way,
• 29:04
  after that it was hockey stick growth,
• 29:05
  right? Well that was dumb, Rod.
• 29:07
  You're a coaching company and you don't have a coach.
• 29:10
  So yeah, I still and I have three coaches right now.
• 29:12
  so I I should have done that early on.
• 29:14
  I should have done it early on in my career and I would have been way ahead
• 29:17
  of where I am. I believe I would be.
• 29:19
  I'm happy where I am, but I'd be happy way ahead.
• 29:23
  Do you have a book recommendation or what are you reading right now?
• 29:25
  right now I am writing. I'm not reading.
• 29:28
  Right now I'm writing maximize your commissions.
• 29:31
  It's a it's a several year long project.
• 29:33
  And when I write books, I tend not to read books because I I like to just keep
• 29:38
  in the scope of my where I want to the message and information I want to share.
• 29:42
  So right now I have a huge pile of books to read,
• 29:46
  but right now it's writing.
• 29:48
  What single tool or process have you implemented that has had
• 29:51
  the biggest time saving impact?
• 29:54
  Claude. Claude has. Anthropic Claude has impacted everything in
• 29:57
  my business from automations to expediting.
• 30:01
  had my entire family using it now.
• 30:03
  So Claude.
• 30:03
  Well, Rod, this this was just fantastic.
• 30:06
  again it is masimo dot coach. I'm going to have that as a clickable link
• 30:12
  in the show notes. But hope you'll consider coming back again sometime.
• 30:15
  This was just fantastic to meet you and it was a great chat.
• 30:19
  Jack, thank you so much for your time and line maybe on your fabulous show.
• 30:22
  It's incredible what you've done and what you've succeeded in.
• 30:24
  The number of, everyone understand the number of shows that Jack
• 30:27
  has produced is probably one of the highest numbers in the entire United States.
• 30:31
  It's just phenomenal. Congratulations,
• 30:33
  Jack.
• 30:33
  I appreciate it. Thank you again.