Eric Tait is an internal medicine physician with an MBA and his own private equity investment firm, which he manages while still practicing medicine. He has found the keys to happiness and fulfillment as a physician and wants to share it with the profession. He breaks it down into paths or touchstones, broken down into wealth, practice, health, relationships and personal development.
Find more about Dr. Tait at the links below.
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Unknown Speaker 0:03
Welcome to the physicians guide to doctoring Podcast, where Dr. Bradley Block otolaryngologist interviews experts in and out of medicine in order to get their take on how physicians and all healthcare practitioners can better help their patients, practices, colleagues, communities, and most of all themselves. The ideas expressed on this podcast are those of the interviewer and interviewee and do not represent those of their respective employers.
Unknown Speaker 0:34
Welcome back to the physicians guide to doctoring. On today’s episode, we interview Dr. Eric Tate. Eric has an MD MBA and actually has his own podcast called the physicians road, a website of the same name. And what makes him really special is one year out of residency. He founded the Vernon mill asset management firm, which helps physicians to invest in private equity. He’s found the key to happiness as a physician He breaks it down into five overlapping paths. He calls them the path of personal development, path of practice path of health, path of relationships and path of wealth. And we get some excellent advice from Eric on how to focus and improve on each of these.
Unknown Speaker 1:18
Without further ado, Eric Tate.
Unknown Speaker 1:22
Welcome back to the physicians guide to doctoring. We’re here with Eric Tate, MD MBA, who actually has his own podcast and website and asset management company, which is one of the great reasons why we have him on the show here today. It’s called the physicians road. You can find him on Facebook on the website, the physicians road calm, and on the podcast, the physicians road and we’ll circle back to that at the end. Eric went to Morehouse undergrad and then went to the Baylor rice MD MBA program, and then did residency in Internal Medicine. But the thing that really makes him fascinating is just one year at a residency, he founded an asset management firm called Vernon Ville asset management, you can find that on what was the website again, Eric burns, oh, calm. It’s Vernon
Unknown Speaker 2:14
Ville. com. Yeah. vrnonville.com.
Unknown Speaker 2:22
So it’s an investment firm that helps people manage private equity. While and when he started, he was working as a full time position. But over the years, because of the success of this firm, among his other ventures, he’s actually managed to scale back from a full time position and only sees patients one day a week. I think that’s something that a lot of us would would dream about. And he manages to use the other six days of the week to work on himself, his family, his asset management firm, and then helping other physicians to do the same. And so, Eric seems to have found the key to physician happiness and he talks about it in terms of the Five, touchstones and key is just making people more mindful of these touchstones he calls them the paths. So there’s the path of personal development, the path of practice, the path of health, health, the path of relationships, and the path of wealth. And at any point in your life, you’ll be working on one or more of these, it just recognizing though that, that it may be to the detriment of the other, because in your life, they’re always fluctuating priorities. But it’s important to be mindful that all of them are out there, and all of them need to be worked on and the more that we can be mindful, the more we can actively manage them as, as an active participant in instead of just being along for the ride. And so I really recommend that everybody check out his websites and his podcast as he really takes much deeper dives into all of these issues. And so what we’re going to ask of Eric today is to just give us some some easy, actionable items on each of those things. So Physicians get kit and other health care practitioners can can get a taste of what he’s discovered. So Eric, thank you so much for taking the time to be here today.
Unknown Speaker 4:09
No, thank you, I truly appreciate the the the opportunity and, and happy to help as many physicians out there as possible kind of figure out what it is that they kind of have to say what it is you want to be when you grow up, because we all tend to get on the path of medicine. And it we we end up having tunnel vision in many ways. And so with that tunnel vision, oftentimes things get get get left behind, I often like to say we we, we kind of go through a little bit of Arrested Development, you know, put our heads down at 1819 and kind of pick our heads up again at 30. And we’ve missed a lot of milestones, a lot of growing up and maturing milestones, oftentimes in that process. So just trying to kind of help people figure out kind of what it is they ultimately I want to do outside of just being a physician.
Unknown Speaker 4:58
One of my one of my co writers Since husband’s who’s not a physician, we were out for my 28th birthday during residency. And he said, Man, 28 was a great year. It’s a shame you’re going to miss it.
Unknown Speaker 5:13
Unknown Speaker 5:14
I’ll never forget that was 11 years ago now and I still very memorable. Yeah, we do we do. We do sacrifice a lot in order to do this. And, you know, unfortunately, the physician burnout rate is so high. So the question was, the question is, you know, was it was it worth it? And I think it’s great that you’ve, you’ve found a way to make it, make it worth it. So So I think what we talked about was personal development is really what sets the rest of this up. So if you could just speak for a minute about what you mean by personal development. For me personal development is for me what this podcast is all about and and there’s there’s a psycho psychologist by the name of Carol Dweck and she she wrote this book called mindset and, and what what it is, is We have a fixed people kind of a fixed mindset, which means that they just feel like they have these static traits. And and it turns out that it’s not true. We don’t have static traits. They’re fluid. People aren’t born funny. You five years old, you make a couple of people laugh and then continue to figure out as you get older, what makes people laugh, and then at 15, it seems like he’s the funniest kid in class. He was just born that way. So it’s not that he was born that way. It developed over time, and just just under the radar, and so So Eric and I both espouse the belief that personal development is the fact that we don’t have static traits we can improve ourselves. So Eric, what what have you been up to? And what do you recommend that is a simple actionable thing that people can do to start down the path of personal development?
Unknown Speaker 6:47
I’m kind of the easiest thing to do in all honesty, is to start with the classic the classic isn’t, you know, Napoleon Hill, Napoleon hills, Think and Grow Rich. It’s really not about getting rich. It’s really about kind of understanding the power that we have within the power within our subconscious, to, for us to be creators, and to be the architects of our own lives, you know, Napoleon Hill birth, lots of other people all the way down through Tony Robbins and Brian Tracy and all these people. And so, you know, Napoleon Hill is kind of the easy persons introduction into the kind of personal development realm and world, the person you would know most out there would be Tony Robbins. He’s also heavy into personal development. But for me, the simple thing about personal development is that what I’m trying to do, at least personally is strip away everybody else’s expectations of who I am and what I should be, and really get down quietly into the core of what I what I really want and what significant contribution I want to make to the world. What that is without any cultural overlays, religious overlays, racial overlays, gender overlays, Just kind of Who am I, in my essence? And how do I want that to manifest kind of in the world?
Unknown Speaker 8:06
So what was the name of that book one more time? Napoleon Hill. Yeah, Napoleon Hill, Think and Grow Rich thinking grow rich. So in order to start down the path of personal development, if you’re looking to improve yourself, his recommendation is thinking Grow Rich by Napoleon Hill. Great, great recommendation, not something that I’ve read yet but it is now on the shortlist. So thank you for that, that recommendation. So then the next path that you you discuss is the path of practice. So when you say practice first, what exactly are you referring to?
Unknown Speaker 8:39
So what I mean by practice is actual our professional lives. And so, in the end, I don’t want to bother people in and say, well, you need to be a practicing clinician or you need to be out of clinical medicine, in the in really the path of practices about your professional development. What, irrespective of what pathway you’ve chosen in terms of clinical versus non clinical. How do you effect The most effective use of your professional time? And how do you Marshal resources to make that be to create the kind of professional life that you really want to have? So
Unknown Speaker 9:11
how would we find an action item in that? And so if people are looking to start down the path of practice and improve their professional life as a physician, is it the physician patient relationship? Is it their relationship with their colleagues or their staff? Is it somehow improving their their reimbursement, like, what is something that they can they can do to start improving their practice?
Unknown Speaker 9:40
And so a lot of it’s going to be where you where you’re finding most of your problems, and so that the old adage is where you where you find resistance in your life as a place you really need to look. And so the thing that you’re resisting most the thing that kind of irks you the most is probably the thing you need to dig out a little bit and figure out what that is. And so yeah, exactly, you run towards your freedom is in your pain. Technically, and that’s very true. And
Unknown Speaker 10:05
find what you wait to do till the end of the day because you really don’t want to do it. And that probably the thing that you can explore, why don’t you want to do it and what can you do to make that less painful?
Unknown Speaker 10:18
Absolutely. And the other thing is what I find with with working with physicians is we tend to be do it yourselfers, as opposed to on the business side, we bring in teams for everything. And so ultimately, because we tend to do a lot of CMS around subject matter of medicine, we don’t tend to do the same kind of professional development as it relates to non subject matter things. And so whether it is hiring a coach, whether it is bringing bringing in an outside billing company, whether it is you know, taking things off of our plate and giving it to people who are experts, as opposed to us trying to necessarily muddle through it. Sometimes going and finding expertise can actually Free us, as opposed to, we tend to assume oftentimes I think in my personality is that way that I can do it better than everybody else. And, you know, playing in business a lot I realized that no, you don’t want to be the smartest person in the room you want to bring in people smarter than you and the subject matters where you are having the most pain.
Unknown Speaker 11:16
I forgot where I heard this but you want to hire the smartest person in the room you don’t want to be the smartest person you want to be in a correct in the position to hire that person.
Unknown Speaker 11:26
Is the old Henry Ford story.
Unknown Speaker 11:27
What was a What was your either your first or most memorable pain point that you were able to outsource? What what really either sent you down this road to improve your path of practice that you found to be most painful, or the most significant?
Unknown Speaker 11:46
over me was probably starting my own practice the first 10 years out. I was employed as I never wanted to own a practice because I’m primary care. It’s very low margin. Didn’t want to deal with the hassles of the headaches of employees in the back office, and all those kinds of things. And when I made the decision to spin out of being employed, I just created a small micro practice. It’s kind of, you know, the one thing I said I would never do, I’m doing and ended up giving me the most freedom in that process. So, for me, that was the biggest kind of bridge to cross in my own life in terms of looking at the thing that I said I would never do, and then actually end up doing it.
Unknown Speaker 12:24
Oh, that’s interesting. So my experience has been quite the opposite. I joined a practice right out of residency, that is a well oiled machine. So if you want you can get involved in some aspects of the management of the group, or you can just put your head down and see your patients and go home and you can get as involved as as as you desire. And so I’m certainly involved in in some of the committee’s but the fact that most of the aspects of running a running the practice just happen in this well oiled machine has been has been for me, I think great, because then it just just just simplifies just simplifies my life that we have two or two, were two sides of the two sides of the coin. Absolutely. And
Unknown Speaker 13:11
it clearly that was not your pain point.
Unknown Speaker 13:13
No. Well, I mean, I didn’t I was read residency. So I didn’t, I didn’t think that running a practice, I didn’t even think of it as as being an option. So, but it’s nice, I think for a lot of our listeners to hear that it is it is possible to do. So. So the next is the path of health. Obviously, that is your physical and mental health. So what what is when you when you meet with physicians, what do you find is a common issue that they have that is obstructing them from going down the path?
Unknown Speaker 13:46
Well, and the thing about it is, you know, it’s not just the physical, right, it’s also the emotional, the psychological, the spiritual. You know, many of us got into medicine. As a calling. We got into it to help other people and Many of many of the of that light and that passion ends up getting beaten out of us through the training process and then coming out and and dealing with all the hassles and rigmarole of medicine. And so honestly, it’s really the broken spirits that are what we see more often than anything else, not necessarily kind of people were massively overweight or, you know, that has a population. I don’t think we as physicians are overly unhealthy. Visa v the rest of the population but from a spiritual and emotional. That’s a low bar, though. Yeah, well, that may be true, but but from a from a spiritual and emotional standpoint, that’s where you see the issue. That’s where you see the suicidality where we are much higher than the population, the general population. So these
Unknown Speaker 14:44
are these aren’t really separate paths. This is more like a Venn diagram, right? Because clearly, your recommendations for the path of practice finding your pain points and outsourcing them is going to then improve the path of health.
Unknown Speaker 14:57
Exactly. This is wrong and intertwined.
Unknown Speaker 15:01
It’s a life balance wheel and it’s all intertwined. They can’t
Unknown Speaker 15:03
eat more salads. No, it’s,
Unknown Speaker 15:06
I mean, of course, I mean, we can all probably do that. But that’s not the big point that I’m seeing when I’m interacting with physicians on a regular basis. It’s really that that that that emotional, and spiritual and mental kind of breaking point that people are at right now that that’s the big big issue. And they should eat more salads and then she works out
Unknown Speaker 15:28
and exercise more. Okay, and probably stretch
Unknown Speaker 15:31
it. But I think meditation Yes, meditation is huge. I think and this is something I’m I’m because I can’t touch my toes. Stretching is you know, when you see people older, if you walk like an older person you would think would walk that’s mostly a flexibility issue and flexibility decreases as you age and so if you want to continue to be vibrant flexibility also for for injury prevention, so but that’s, that’s
Unknown Speaker 16:00
Absolutely, I have mostly Medicare patients, and I’m sending them to yoga classes all the time.
Unknown Speaker 16:06
Fantastic. And that that gives them a community as well, which is, which gets us to the next path seamlessly, seamlessly, the path of relationships seemingly, if you get rid of some of your pain points that improves your mental health, and that will spill over into your relationships. But is there something specific that you’ve seen with physicians again, and an actionable item that you think our listeners can do to improve their relationships, be it with their spouse, their children, their partners, their employees? What What do you think is either something easy to do or something that you commonly see as as a problem?
Unknown Speaker 16:44
Well, again, you said it and it’s true. It’s it’s, it’s the mindfulness, right? It’s the understanding that those human interactions and connections can’t just be put on autopilot, that you actually have to see the person and I don’t mean just, you know, visualize them but as he See the people that you are with, whether it be your colleagues, your significant others, your, you know, your parents, aging parents, you know, children, being present with the people you are with, when you are with them, you know, be or the proverb says, you know, be where your where your feet are, where your feet are planted. And that’s why I say a lot of these are touchstones, because being cognizant that these things are important, is often enough that you will take the half second, the five minutes just to connect with someone, right? But we oftentimes get so much on the treadmill, that this stuff just kind of, we’re just not thinking about it. We’re just trying to get through our day. We’re just trying to get to our charts. We’re just trying to trying to figure out kind of how to keep our heads above water. And some of it is just taking the pause and saying, Oh, I have somebody in the house with me. I have a child. I have an adult who’s thinking about me, I have family members who I haven’t connected with. And so some of it is just a reminder like, oh, okay, I need to spend some time with these people. And a lot of time there’s not a lot of time. That was the fact that you’ve made the gesture to prioritize someone else. And then they know that you’re prioritizing them, that makes all the difference in the connection. And so, you know, from a, from a pure practical standpoint, you know, retreats are always good if you’re talking about kind of couples or significant other types type things where it’s just dedicated time. From that standpoint, if you’re talking about colleagues, and I think about a sphere in a toxic kind of work environment is, you know, it’s hard, right? Because if you if you’re not the person who runs the and runs that particular environment, you may not be able to bring in outside mediators or team building exercises. These are all kinds of things that rarely happen. We don’t see them happening a lot in medicine that the business world tends to do now without the business
Unknown Speaker 18:46
because those are patient. That’s time that can be spent seeing patients
Unknown Speaker 18:49
exactly going to retreat. Exactly. And so, you know, some of that resetting of, of expectations, and I don’t mean lowering equities, I mean resetting of expectations as to what our lives look like, because the only reason why you’re pushing the productivity of seeing more patients is so that you can create more revenue. Right? Well, you know, that will very easily and seamlessly move us into the next pathway, in terms of kind of how you take those revenue pressures off of yourself personally.
Unknown Speaker 19:17
But before we do, there was something that you mentioned. And it’s you said, Be present. And I think that is something at least for myself, that I found to be hugely important for both my practice and my relationships. So with my practice, you know, they were medical school, you have to listen, your patients want you to listen, don’t interrupt your patients. They don’t think you’re listening. You’d be a better listener. Right? Well, listen, listen, listen, I don’t think it’s such great advice. Because it’s not actionable, but I think being the concept of being present, so not only should you be present, which means you’re focused on your patient and you’re not thinking of anything else, but you should also look like your Present. And so even though it might seem like, you know, might seem to your patient, like when you’re typing on your EMR, that you’re playing Minesweeper, just, you know, informing them that you’re just, you know, writing them to. So it’s important for you to be present, so that they, that they feel like their time is worth something. But also, that you also make it appear that way. So it doesn’t, even though you are present, make it look like a present. And that’s something from my relationships, that it’s helped me with my kids. You know, I keep on hearing. It goes so fast. It goes so fast. It goes so fast. Great. That’s great advice. Thank you so much for telling me that it’s going to go fast. Because you know, it hasn’t been five minutes, that someone else hasn’t told me that it goes off as I recognize that it goes right. The days are long, but the years are short, right? But I think something that that is actionable for that is be present. When you’re with your kids. Don’t think about work. Don’t think about your business. Don’t think about the renovations your house, don’t think about your bills. When you’re a kid with your kids. Just make sure you’re going to find your mind wandering, which is kind of what you were mentioning about meditation. Right meditation is a practice that helps you manage that mind wandering issue. But I think being being present when you’re with your with your friends being present with your with your family, that that’ll help your practice and it’ll help your relationships and it takes practice kind of like that whole thing I mentioned with Carol Dweck and mindset, it’s something that you can improve with practice. So, so I appreciate you mentioning that because I just, I found that to be so hugely important being being present. And so, you know, making enough time for for relationships is hard if you are working a ton, so then, as you mentioned, leads into the path of wealth. And so as someone who founded and manages an asset management firm, while he’s a practicing physician, obviously that gives you tons of credentialing with our physician audience. You were pretty that’s pretty incredible feat. And so why don’t you talk to us about getting physicians on the path to wealth.
Unknown Speaker 22:01
Yeah, I mean, the easiest thing I what I tell people is I really give people you know, I really tell people what to do what I what I can tell people is, I can show you what I’ve done, right? And so I realized that an early step. Actually, when I was in business school, I realized that there’s only so many hours in the day you can labor. And that if I wanted to be able to not have to labor, for whatever reason, right for me, it was I wanted to practice in this particular kind of way. I want to practice medicine in a specific way. And I didn’t want the pressures of productivity and assembly, line medicine, getting in the way of that. And so what I figured was, I would need to replace my income in some way, shape, form or fashion. For me, you know, doing franchises or operating businesses wasn’t going to make sense because I was a practicing physician. And so, you know, investing in real estate and being kind of a silent partner and businesses, but with the understanding that I was not going to invest in anything that did not generate income directly to me. Because I wanted to replace my medicine, medical income. And so that was the whole focus of everything that I did. And so the investment firm was really set up by my accountant, for us to manage our own properties. And then over time, we just had other physicians who wanted to invest with us. So when we allow other physicians to join us in the things that we were doing, but this is the way I’ve always invested our family money in the world, to give us the time, to be able to operate our practices, pay attention to our health, have great relationships. And so what I understood was from the personal development side, I figured out what I wanted. On the wealth side, I figured out how to achieve it by getting more time and then that allowed practice health and relationships to follow from that. And that’s why this whole thing kind of intertwines, from that standpoint.
Unknown Speaker 23:48
So it sounds like you’ve found for you, for you, the path to wealth has been investing specifically in real estate. Is that correct?
Unknown Speaker 23:57
Yeah, I mean, I would say probably a percent. Yeah.
Unknown Speaker 24:00
So So if a physician wants to
Unknown Speaker 24:05
dip their toe in that
Unknown Speaker 24:09
pool, how do you get started doing something like that it would seem, you know,
Unknown Speaker 24:16
for physicians that are kind of early on in the careers with not much savings, right? Because we have that delayed delayed gratification, delayed monetary reimbursement. We don’t have a lot of savings. And so if, if you’re talking about buying $150,000 apartment that you’re then going to rent out to someone else. That is a substantial amount. That’s, you know, sounds like a substantial risk. How do you recommend we get started in something like that?
Unknown Speaker 24:41
Well, well, the first thing you want to do is figure out if it’s if that’s even what you want to do, right? So it goes back to kind of the person development kind of figure out what what are your ultimate goals, right? So then you start with the ultimate goals, what is it that I want to accomplish? And if you’re like, Okay, well, I want income streams that are recognized that I want to have, well, you’re talking about dividend producing stocks, even though the the rate of return is below inflation, bonds, same issue you have with that private businesses, real estate, things of that nature. So have to decide if that’s what you want, once you decided that that’s what you want. Now you have to figure out how do you want to do it? Right? Do you want to be the person that manages it? So you’re probably not gonna buy an apartment for 150,000. But you could buy a house. And you don’t have to have 150,000, you only have to have about 30% of that. And so you’re talking about, I don’t do math in my head, quickly, easily. So it’s 2030 $40,000. Right? And so it’s just a matter of choice, right? I chose to, to personally direct our resources to doing this thing. people choose to direct the resources. Other places people choose to put them in 401k is people choose to put them in IRAs. Again, that’s a personal choice, but everyone has to live with the consequences of their personal choices, right? And so that’s why figuring out what you want to do with the first thing first, and then you have the Go and find strategies that makes sense for you to be able to do that. If you decide that Yeah, I want to be in real estate, but I don’t want to, I don’t want to manage any of that. Then you would end up going to syndications which are larger group investments, you know, anywhere from you can go the crowdfunding route, which is, you know, zero to $20,000 to, you know, more of the private syndications which are usually 50 to $100,000. Right. Again, it all depends on kind of what it is you ultimately want. And then if you’re in private practice, you can have accounts that use your tax deferred money and you can put that into real estate if you wanted to as well. Now, most financial planners don’t tell you anything about that. But the IRS absolutely allows you to do it. And then you know, the overall conversions are there are lots of ways to skin a cat. But again, it all is going to start from what it is you want to accomplish. Not what other people telling you should accomplish, not what you’ve heard other people do. But would you within yourself. Say hey, this is what I’m I want my life to look like in the next two years, five years, seven years, 10 years from now. And then how do I have my investment portfolio support the goals that I’m trying to achieve?
Unknown Speaker 27:11
So it sounds like, you know what you were saying 80% of your investments are in real estate. And if a physician wanted to do that, in a rather get started, in that rather than being the sole owner of a property, they could seek out a syndication
Unknown Speaker 27:32
or crowdfunding syndication is that
Unknown Speaker 27:35
well said well, crowdfunding is a type of syndication, although syndication isn’t a group investment. So any any major building UC hotel, apartment farm building, they’re all syndications. It doesn’t matter whose money is being used, whether it’s your insurance premiums through your insurance company, whether it’s through private equity, whether it’s through a group of doctors getting together and doing it. All of the major developments that you see out there are syndications. The crowd for As for individuals on on kind of a lower income, not lower income, lower investment amount end. And the bigger syndications are usually on a higher end. But all it is is a group in bed mean technically, all a mutual fund is a group investment, you pulling your money to go buy stocks, right? So it’s just group investing but buying a different asset class.
Unknown Speaker 28:20
But that sounds to me. So, you know, one of the one of the benefits of investing in the market is your diversify, right? So, if you invest in the market, and you buy an index fund of the whole market, it’s hard to be more diversified than that. But if you’re taking a significant sum sum of money and putting it into a building, that to me sounds less, less diversified and US have bigger risk, clearly bigger rewards, but also a bigger risk. So I would think that that’s what would cause physicians on top of just not knowing that things like this are even out there as an option right? Probably most people think own apartment building is too complicated as a lot of headaches. It’s a lot of hassle. You’re making it sound like no, actually, it’s much simpler, as long as you know who to talk to and where to find it. It’s much simpler to do than that. But another thing I think people would be concerned about is now it sounds like you’re less diversified. More of your eggs are in fewer baskets. So isn’t that putting your your your money at higher risk?
Unknown Speaker 29:28
Well, depends on how you define risk, right? I mean, ultimately, you know, for me real things. The risk is always in the investor and not the investment. So it’s really just a knowledge base, right? I could ask anyone who, who has a 401k and ask them what’s your largest holding in their 401k? They wouldn’t be able to tell me they couldn’t tell me who the biggest competitors are of the largest holders and their 401k. I mean, so, again, risk is in the investor, not the investment. I would say from that standpoint. The second thing is it’s purely from an asset allocation. Stay One point, having all of your money in the publicly traded stocks and bond markets, you’re not diversified, you have to have some private investments to be truly diversified. We saw in 2008 in 2009, something called correlation. And so what that means is the linkages between all asset classes, stocks, bonds, everything in the public markets is very tight these days. And I can go into a lot of technical reasons why that is. But what we saw is that all these asset classes fell at the same time, which is technically not supposed to happen if your quote unquote, diversified, right. Well, you know, on and I don’t want this to be a stocks was real estate thing, because and again, I’m about asset allocation. So there wasn’t
Unknown Speaker 30:42
that the market fell because the
Unknown Speaker 30:44
real estate market crashed. Well, no, actually it was basically the 20% techcrunch’s of securitized funds, that went bad and the problem was the people in written derivatives off of those and so once the value of the ratings of those mortgage bonds because wasn’t the real estate was really the bonds. Once the valuables bonds dropped, it caused a cascading chain of react chain reaction where people had to get liquid. And the only thing they could get liquid with was kind of stocks, bonds and those kinds of things. And so big I, you know, I don’t want to bore your listeners with the technical analysis of all that. And there’s a great book if anybody wants to read it, called the differentiation of capitalism, david stockman and maybe getting the the title incorrect, but david stockman, who was Reagan’s budget director, wrote a perfect treaties that explain exactly what happened during the meltdown, and that it was pretty well contained. But for reasons that the government likes to kind of back the Wall Street guys, that all that bailout happened, which has created an even further distortion in the market today. But again, we’re going off on a much more technical situation. So now moving it back to diversification. I mean, I looked at my own portfolio. mean we own single family homes, multifamily properties, farmland, commercial strip centers, mean I’m pretty well diversified. We own in the United States outside the United States and foreign countries with foreign currencies, pretty well diversified, right? So it’s really more a matter of your understanding of what you’re actually invested in, which will kind of determine the risk, right? Me an apartment is pretty easy. People need a place to live, of course, you have to ask yourself is is there good job growth in the area? are they building a lot of other apartments in the area? I mean, these are all things that, you know, a high school kid can understand. And so for me, that’s why it’s, it’s a much they’re far less moving parts than me trying to figure out what you know, the Fed is going to do and how it’s gonna affect my 401k and Ira balance and just that that’s just too opaque for me personally.
Unknown Speaker 32:50
Well, I think, you know, the reason that one of the recommendations for investing in index funds, instead of trying to pick stocks is that it’s opaque. Everybody, right, like, unless you have some insider trading information, then and that’s really what I think you’re you’re saying here is, is, is the market in general is also everybody knows everything about what they should know about the market, right? Everything is transparent. But you’re what you’re doing is you’re finding investments that other people don’t have information on, because you’re getting the information about the school districts and the job opportunities. And, and because this isn’t maybe public information, these these investments aren’t available to everybody that puts you who did the research on these things. Add an advantage. It’s almost like insider legal insider trading information, you know, something you have access to information that other people may also have access to. But but in contrast to the market, where you have tons of people doing research on these things, and, you know, recommending that their funds do these things. You know, this apartment building in the outskirts of Houston. A lot of people are doing This is the research on this. So you’re not, you don’t have that that competition.
Unknown Speaker 34:06
Perfect example. So the last project we did is 100,000 square foot commercial strip center that a bunch of physicians who joined us on that project a week was selling it. And the President of the region even realize the junior guy was telling me that by the time the contract was already signed, there was a little bit of vacancy 70 plus percent of the of the place was occupied by credit tenants. So, TJ Maxx and things like that. The day of closing, our partners had two other leases, signed ready to go. That added roughly two and a half million dollars to the bottom line. So that was relationships, that was understanding the market. There’s so much information asymmetry when it comes to real estate. That’s the inefficiencies that you can exploit.
Unknown Speaker 34:51
That’s the word I was efficient. The market is perfectly efficient, but what you’re identifying is the inefficiencies in These other private equity investments and then capitalizing on them. And I may be incorrect about this, but I’m pretty sure Arnold Schwarzenegger did not make most of his money from Conan the Barbarian, which I would argue is one of the greatest movies of all time. But it was it was from twins. No, it was from real estate investments. So I think he made most of his money there. I mean, he was able to make these investments because of what he made from the, from the movies, which he, you know, are bodybuilding, but, but most of his money was was was in real estate investments.
Unknown Speaker 35:32
Absolutely. If you look at the Forbes 400 outside of the tech guys, most of that list is real estate people.
Unknown Speaker 35:38
So just to if someone wants to dip their toe into it, just to get just a taste, right, of what that means. Where do you find that? That crowdfunding, how do I what what’s the website that I look at? What’s the book that I read? What is how do I how do I find out more about this?
Unknown Speaker 35:59
Oh, Off the top of my head because they’ve approached us for some of our projects, and we’ve never gone with them. I mean, Content Management know how to crowdfund, you know, we’re not crowdfunding we don’t we, we believe in actually having a personal relationship with people. The issue with crowdfunding is you’re not going to ever meet the person who’s putting the project together. And I’m not saying that there’s there’s anything wrong with it, you can buy it like a mutual fund,
Unknown Speaker 36:22
and also your well really is your investment as liquid as that.
Unknown Speaker 36:27
That’s not as liquid but you can point and click
Unknown Speaker 36:30
guys got it. Okay, so it’s easy to Easy, easy to do
Unknown Speaker 36:33
was coupon important?
Unknown Speaker 36:35
liquid? So yeah, that money. You can’t get it as easily as you can. No,
Unknown Speaker 36:40
no, I would just say Google crowdfunding. And really, again, it’s about you understanding what it is you’re investing in, not the not the mode, which you’re getting the investment, right? Because they’re all syndications. So you still going to have to understand what a syndication is whether you go crowdfunding with a private and you have
Unknown Speaker 36:56
a fantastic podcast on that that I was listening to. So I think in order to wrap this up the Eric Tate thank you very much for your time. This was a great I was blown away I really appreciate your sharing your wealth of knowledge with us. And if you found this as interesting even as half as interesting as I did, you’re going to want to know where to find him. So again, the physicians road calm the physician road has a Facebook page as well that you can find his company Vernon Ville asset management is it Vernon Ville calm his podcast, the physicians roads and look that up on Spotify or Stitcher or iTunes or Google podcasts or wherever you get your wherever you get this podcast clearly for listen to this, you know where to find podcasts? Is there anywhere any last words or any other places where they where they can find you?
Unknown Speaker 37:50
know, I think that’s pretty pretty well it I mean, I’m easily Google Google. My last name is TTAIT. But I want to thank you and for what you’re doing for for physicians and highlighting other physicians and kind of giving a platform to let the world know that there are many ways for us to exist in this space and so, Brad, I really appreciate you having me on. It’s been a pleasure.
Unknown Speaker 38:17
That was Dr. Bradley Block at the physicians guide to doctoring. Find all previous episodes on iTunes, Stitcher, Google podcasts, or wherever you get your podcasts and write us a review. You can also visit us on firstname.lastname@example.org slash positions guide to doctoring. If you are interested in being a guest or have questions for a prior guest, send a message or post a comment.
Transcribed by https://otter.ai