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Real-estate investors who own more than 20 doors share the 2-pronged strategy they're using to build wealth

16 February 2025 at 04:00
mike gorius kevin hart
Mike Gorius, left, and Kevin Hart buy real estate in Louisville.

Courtesy of Mike Gorius and Kevin Hart

  • Business partners Kevin Hart and Mike Gorius have built a robust and diverse real estate portfolio.
  • Their strategy involves flipping and wholesaling for cash and holding rentals for long-term gains.
  • Their advice to new investors is to start with a flip to bring in cash and then expand to rentals.

Kevin Hart started thinking about real estate as a viable business in college when he was renting a duplex with his fraternity brothers.

"We had both sides, there were 10 guys, and we were all paying 500 bucks a month to this landlord," the University of Kentucky grad told Business Insider. It seemed like a relatively simple way to bring in thousands of dollars a month, "so I always had that in the back of my head."

He graduated, started a career in accounting, and found his mind wandering as he sat in his cubicle all day "mindlessly sending spreadsheets," he said. "I was daydreaming about real estate or other businesses, thinking, 'How do I get out of here?'"

His curiosity led him to websites like BiggerPockets. He learned about various investing strategies, "but I put real estate on the back burner because I just thought it was too hard to get started. I didn't have any money and didn't think I could do it."

A career pivot to insurance in 2017 ended up putting Hart in the red. He started working as an independent contractor for State Farm and took out a business loan to help with marketing expenses.

The one major silver lining was that it introduced him to home flippers in his area in Louisville.

"They were clients of mine on the insurance side and motivated me to flip a house and see if it's really for me," said Hart. "I started working with some local wholesalers, found a good deal, and bought this first house with $8,000 down using a hard money lender. My wife was super freaked out about what I was doing because I'd never done it before. Luckily, it went really well."

He said he and his first business partner bought the property for about $70,000 in March 2019, put roughly $40,000 of work into it, and sold it for around $160,000.

"Together we split probably $30,000 of profit," said Hart. He was hooked, bought two more flips before the end of the summer, and quit his job later that same year. "I had these paychecks coming in that were triple what I was paying myself at State Farm as a self-employed insurance agent. That was super exciting."

mike gorius kevin hart
Hart and Gorius have been working together on real estate deals since 2022. They formed an official partnership in 2024.

Courtesy of Kevin Hart and Mike Gorius

Hart's current business partner, Mike Gorius, took a different approach at the beginning of his real estate career, which began as a side project to help alleviate credit card debt and car loans. He started by purchasing a duplex in Louisville, despite living in Phoenix at the time, and turned it into a long-term rental.

"I spent about $35,000 on the down payment of my own money. When I got my first rental check, the profit was like $400," said Gorius, who worked in sales and recruiting throughout his corporate career. "I remember thinking, 'Oh man, it's going to take a lot of $35,000 down payments for me to retire off this."

Gorius and Hart, who initially connected when Gorius was looking to buy in the Louisville market, have been doing deals together since 2022. They formed an official business partnership in 2024 under the Joe Homebuyer franchise and, in their first full year working together, did 50 transactions between wholesales, wholetails, and flips. They also own more than 20 rental properties, including short-, mid-, and long-term, in the Lousiville area. BI verified their property ownership and deal history by looking at settlement statements and closing documents.

Thanks to real estate, Hart says he's completely rid of bad debt, and Gorius, who quit his corporate job in 2023 to work in real estate full-time, expects to have paid off his in 2025.

"There's not much else out there where you can make lump sum checks to help you pay off that debt," said Hart. "It's a good business to help you build your savings account."

Their next major milestone is financial freedom and the option to never have to work for income again, though they're not the types to be on the golf course five days a week. They said the flexibility is more intriguing.

A two-pronged wealth-building strategy: Flip to bring in cash, then buy and hold rentals

Hart and Gorius have narrowed in on a real estate strategy that works for them β€” and they encourage new investors to use a similar approach: Start with a flip for a cash infusion and then use that money to buy and hold rentals.

"If you have 10 grand you can typically go find a deal, put the down payment down, and hopefully you're making $15,000 to $30,000. That's a quick capital boost to help you get going," said Hart. "If you start flipping a few houses a year, whether you've got a W2 or not, that's definitely going to put you in the right direction to be able to do other things like buying rentals."

It's easier said than done.

A common and costly mistake in the flipping world is going with the first contractor you find, rather than interviewing a few.

"Try to get referrals from other flippers. That way, hopefully, you're not getting burned on a bad contractor," said Hart. "You definitely don't want to hire the cheapest one you find. They're probably cheap and available for a reason."

Another rookie mistake is taking on too big of a project. You don't want to be gutting the house or moving walls on your first flip. Instead, start with more of a cosmetic flip where you're updating the flooring, paint, cabinets, and light fixtures.

"In reality, if you're doing a lot of flips, flipping is a pretty boring business. You're using the same paint colors, you're using similar flooring. Whatever's in style that year, we're like, 'Okay, for the next five houses, this is what we're doing,'" said Hart. "We're doing neutral colors, neutral floors, and just making everything fresh and clean so that it appeals to the most amount of people possible."

The money coming in from their flips and wholesales funds their lifestyle and savings.

"Flipping and the wholesaling, that's what I love to do. That's my day job, so I've turned that into my 'salary,'" said Gorius β€” and it can be lucrative.

He cited their most recent deal: "We got a property under contract 16 days ago, closed on it today, and wholesaled it for $24,000. Because it's a wholesale, that's pretty much gross profit. That's an extreme case. That's a fantastic deal. I will say there are other deals and flips that have been in our pipeline for two, three months now, so they're not all like that. But that is the power of this business."

A successful flip or wholesale can help you build enough savings to start adding rental properties to your portfolio. The problem with starting with a long-term rental is that it likely won't generate much cash flow, if any. In their market, for example, they can profit about $100 to $200 a month per unit.

"If you don't have any money in the bank and a tenant calls you because the water heater went out, there goes a whole year of your cash flow," said Hart. "You really have to be prepared to be able to make these repairs."

They look at their long-term rentals as their retirement funds.

"They probably won't make a ton, if any, money in the short term, but if you hold it for that 20, 30 years, then that's your retirement plan," said Gorius.

As Hart put it: "Buying rental properties is like a slow burn to retirement. No one is getting super wealth immediately, especially not in Louisville." But over time, "The tenants pay the mortgage, we build equity every single month, and eventually, we can sell off and have a nice retirement plan with it."

Read the original article on Business Insider

Billionaire couple win refund after paying $40 million for a Notting Hill mansion infested with moths

11 February 2025 at 03:53
Horbury Villa in Notting Hill
Horbury Villa is in Notting Hill, west London.

Google Maps

  • A billionaire couple won a refund for a moth-infested London mansion they bought in 2019.
  • The buyers accused the seller of concealing the moth infestation.
  • A High Court judge ordered the seller to refund much of the cost of the house as well as damages.

A judge ordered a refund for a billionaire couple who paid Β£32.5 million (about $40 million) for a mansion with a "severe moth infestation."

A UK High Court judge ruled that Iya Patarkatsishvili, daughter of the Georgian billionaire tycoon Badri Patarkatsishvili, and her husband Yevhen Hunyak, can hand the home back to the seller, the property developer William Woodward-Fisher.

Patarkatsishvili and Hunyak purchased Horbury Villa in Notting Hill, west London, in May 2019. However, the judgment states that within days of moving in, they started noticing moths flying around and landing on their cutlery.

The couple found moths in clothes, wine glasses, and toothbrushes and swatted away hundreds a day, the judgment stated.

Pest control companies found that insulation in the ceiling was the source of the issue. The works to replace the insulation cost Β£270,000, the hearing heard.

The claimants accused Woodward-Fisher of knowingly selling the house with the moth infestation. He was found to have known about the issue since early 2018 but failed to inform Patarkatsishvili and Hunyak.

Woodward-Fisher told the court he had been informed that moths were not vermin and "therefore not relevant to this inquiry."

The judge ruled that Patarkatsishvili and Hunyak should be refunded much of the house's cost, minus Β£6 million for the time they lived there, plus substantial damages. Woodward-Fisher was ordered to pay the couple Β£4 million in damages, including Β£15,000 for their moth-damaged clothes and Β£3.7 million they paid in stamp duty.

Chris Webber, an attorney at the firm Squire Patton Boggs who represented Patarkatsishvili and Hunyak, said the couple "hope the case will serve as a warning to unscrupulous property developers who might seek to take advantage of buyer beware to sell properties by concealing known defects," The Guardian reported.

Patarkatsishvili is a theater director. Her father, who died in the UK in 2008, was once Georgia's richest man worth $12 billion, per Forbes. Some of his assets passed to Patarkatsishvili.

Woodward-Fisher is a former rower who competed for the UK in the 1970s.

Horbury Villa was built in the mid-1800s and spanned 2,800 sq ft. After being extended, the property covered 11,000 sq ft and featured a pool, spa, cinema and gym in the newly created basement, according to the website of architect Anthony Paine.

Read the original article on Business Insider

OpenAI has little legal recourse against DeepSeek, tech law experts say

A phone screen shows the two apps of ChatGTP and DeepSeek.
OpenAI has limited legal options if it wants to take DeepSeek to court.

picture alliance/dpa/Getty Images

  • OpenAI and the White House have accused DeepSeek of using ChatGPT to cheaply train its new chatbot.
  • Experts in tech law say OpenAI has little recourse under intellectual property and contract law.
  • OpenAI's terms of use may apply, but are largely unenforcible, experts say.

This week, OpenAI and the White House accused DeepSeek of something akin to theft.

In a flurry of press statements, they said the China-based upstart had bombarded OpenAI's chatbots with queries, hoovering up the resulting data trove to quickly and cheaply train a model that's now almost as good.

The Trump administration's top AI "czar" said this training process, called "distilling," amounts to intellectual property theft. OpenAI, meanwhile, told Business Insider and other outlets that it is investigating whether "DeepSeek may have inappropriately distilled our models."

OpenAI is not saying if the company plans to pursue legal action, instead promising what a spokesperson termed "aggressive, proactive countermeasures to protect our technology."

But could they? Could they sue DeepSeek on "you stole our content" grounds, much like the grounds OpenAI was itself sued on in an ongoing 2023 copyright claim filed by The New York Times and other news outlets?

Business Insider posed this question to experts in technology law, who said challenging DeepSeek in the courts would be an uphill battle for OpenAI, now that the content-appropriation shoe is on the other foot.

OpenAI would have a hard time proving an intellectual property or copyright claim, these lawyers said.

"The question is whether ChatGPT outputs" β€” meaning the answers it generates in response to queries β€” "are copyrightable at all," said Mason Kortz of Harvard Law School.

That's because it's unclear that the answers ChatGPT spits out qualify as "creativity," he said.

"There's a doctrine that says creative expression is copyrightable, but facts and ideas are not," explained Kortz, who teaches at Harvard's Cyberlaw Clinic.

"There's a huge question in intellectual property law right now about whether the outputs of a generative AI can ever constitute creative expression or if they are necessarily unprotected facts."

Could OpenAI roll those dice anyway, and claim that its outputs actually are protected?

That would be unlikely, the lawyers said.

OpenAI is already on the record in the New York Times copyright case arguing that training AI is an allowable "fair use" exception to copyright protection.

If they do a 180 and tell DeepSeek that training is not a fair use, "that might come back to kind of bite them," said Kortz. "DeepSeek could say, 'Hey, weren't you just saying that training is fair use?'"

There's arguably a distinction between the Times and DeepSeek cases, Kortz adds.

"Maybe it's more transformative to turn news articles into a model" β€” as the Times accuses OpenAI of doing β€” "than it is to turn outputs of a model into another model" as DeepSeek may have done, Kortz said.

"But this still puts OpenAI in a pretty tricky situation with regard to the line it's been towing regarding fair use."

A breach of contract lawsuit is more likely

A breach-of-contract lawsuit is much likelier than an IP-based lawsuit, though it comes with its own set of problems, said Anupam Chander, who teaches technology law at Georgetown University.

The terms of service for Big Tech chatbots like those developed by OpenAI and Anthopic forbid using their content as training fodder for a competing AI model.

"So perhaps that's the lawsuit you might possibly bring β€” a contract-based claim, not an IP-based claim," Chander said.

"Not 'you copied something from me,' but that you benefited from my model to do something that you were not allowed to do under our contract."

There's a possible hitch, Chander and Kortz say. OpenAI's terms of service require that most claims be resolved through arbitration, not lawsuits. There's an exception for lawsuits "to stop unauthorized use or abuse of the Service or intellectual property infringement or misappropriation.

There's a larger hitch, though, experts say.

"You should know that the brilliant scholar Mark Lemley and a coauthor argue that AI terms of use are likely unenforceable," Chander said. He was referring to a January 10 paper, The Mirage of Artificial Intelligence Terms of Use Restrictions, by Stanford Law's Mark A. Lemley and Peter Henderson of Princeton University's Center for Information Technology.

To date, "no model creator has actually tried to enforce these terms with monetary penalties or injunctive relief," the paper says.

"This is likely for good reason: we think that the legal enforceability of these licenses is questionable," it says. That's in part because model outputs "are largely not copyrightable" and because laws like the Digital Millennium Copyright Act and the Computer Fraud and Abuse Act "offer limited recourse," it argues.

"I think they are likely unenforceable," Lemley told BI of OpenAI's terms of service, "because DeepSeek didn't take anything copyrighted by OpenAI, and because courts generally won't enforce agreements not to compete in the absence of an IP right that would prevent that competition."

Lawsuits between parties in different nations, each with its own legal and enforcement systems, are always tricky, Kortz said.

Even if OpenAI cleared all the above hurdles and won a judgment from a US court or arbitrator, "in order to get DeepSeek to turn over money or stop doing what it's doing, the enforcement would come down to the Chinese legal system," he said.

Here, OpenAI would be at the mercy of another extremely complicated area of law β€” the enforcement of foreign judgments and the balancing of individual and corporate rights and national sovereignty β€” that stretches back to before the founding of the United States.

"So this is, a long, complicated, fraught process," Kortz added.

Could OpenAI have protected itself better from a distilling incursion?

"They could have used technical measures to block repeated access to their site," Lemley said. "But doing so would also interfere with normal customers."

He added, "I don't think they could, or should, have a valid legal claim against the searching of uncopyrightable information from a public site."

Representatives for DeepSeek did not immediately respond to a request for comment.

"We know that groups in the PRC are actively working to use methods, including what's known as distillation, to try to replicate advanced U.S. AI models," OpenAI spokesperson Rhianna Donaldson told BI in an emailed statement.

"We are aware of and reviewing indications that DeepSeek may have inappropriately distilled our models, and will share information as we know more," the statement said. "We take aggressive, proactive countermeasures to protect our technology and will continue working closely with the US government to protect the most capable models being built here."

Read the original article on Business Insider

OpenAI says DeepSeek may have used its AI outputs 'inappropriately' to train new models

29 January 2025 at 10:44
Sam Altman talking
OpenAI CEO Sam Altman.

Eugene Gologursky/Getty Images for The New York Times

  • OpenAI said it was investigating whether DeepSeek inappropriately used its AI outputs.
  • DeepSeek built AI models using less-advanced chips at a fraction of the cost of US rivals.
  • "We take aggressive, proactive countermeasures to protect our technology," OpenAI said.

OpenAI is investigating whether DeepSeek inappropriately trained its powerful AI models using the US startup's technology.

A spokesperson for OpenAI said the company was reviewing the matter closely and would take "aggressive, proactive countermeasures" to protect its AI models from improper use.

"We know that groups in the PRC (People's Republic of China) are actively working to use methods, including what's known as distillation, to try to replicate advanced US AI models," the spokesperson wrote in an email. "We are aware of and reviewing indications that DeepSeek may have inappropriately distilled our models, and will share information as we know more."

DeepSeek built top-performing AI models using less-advanced chips at what it says is a fraction of the cost of rivals such as OpenAI, Google, and Meta. The news has hammered some tech stocks this week and put a big question mark over massive spending on AI chips and related infrastructure.

It's a particular challenge to OpenAI because DeepSeek's models are priced way below the US startup's offerings.

OpenAI lets developers with a valid license integrate its proprietary models into their own applications. Its terms of use, however, prohibit developers from using outputs from its models to develop any models that directly compete with its products and services.

David Sacks, the White House's artificial-intelligence and crypto czar, told Fox News it was possible that DeepSeek had engaged in intellectual property theft.

"We take aggressive, proactive countermeasures to protect our technology and will continue working closely with the US government to protect the most capable models being built here," the OpenAI spokesperson told BI on Wednesday.

Citing people familiar with the matter, Bloomberg reported on Tuesday that Microsoft notified OpenAI that its security researchers in the fall had observed individuals they believed may be affiliated with DeepSeek siphoning a large amount of data using OpenAI's application programming interface, or API.

Read the original article on Business Insider

I bought a cheap home in Japan sight unseen. The $26,000 I spent is a better investment than a vacation home in the US.

23 January 2025 at 10:25
The front of a home in Japan (left) and a man and woman taking a selfie (right).
Erik Buhrow, and his wife, bought a home in Japan for less than $30,000.

Courtesy of Erik Buhrow.

  • Erik Buhrow bought a home in Japan for $26,000 while he was still living in the US.
  • Buhrow, who grew up in Japan, plans to return at some point when his career is over.
  • In the meantime, he plans to rent out his home to the Americans looking to move to Japan.

This as-told-to essay is based on a conversation with Erik Buhrow, who bought a house in Japan's Niigata Prefecture through AkiyaMart, a site that helps foreigners buy abandoned Japanese homes known as akiyas. Buhrow, 39, runs a construction business outside Minneapolis.

A lot of people born and raised in Minnesota stay here forever. I've only been here about 10 years.

It can feel like anybody who has any sort of money bought a cabin in northern Minnesota back in the day β€” when you could. Now, if you want to buy a cabin up north, you're spending $300,000 for a starter shack in the tundra.

Would I rather spend $300,000 on a cabin in northern Minnesota or $30,000 for a cabin in Japan β€” a country I'm from, I'm accustomed to, and I actually enjoy going to?

I purchased an akiya in Japan this year. I closed on it in July and I did everything remotely over the course of three months.

I did not visit Japan to see the house or do anything. I worked with a real-estate agent who went there and FaceTimed me. Because I'm in construction and I am used to Japan, I was like, "Yeah, I'm willing to pull the trigger without going there."

The exterior of a home in Japan.
An outdoor walkway on Buhrow's property.

Courtesy of Erik Buhrow.

It's roughly 3,000 square feet and about 150 years old. The Japanese would classify it as eight bedrooms, but I would classify it as six. There are two extra rooms that they would consider bedrooms, but because of their lack of closets, I'm going to call them bonus rooms. There's a two-car garage, one bathroom, and multiple really open living room spaces in an old-school style.

All in with the taxes and the real-estate fees and everything, it was $26,000.

A lot of people say, "The prices are really good, but the insurance and the taxes are going to get you." They don't. My insurance for $200,000 of replacement costs me a little under $500 a year. I actually bought five years' worth of home insurance at once.

My taxes are $183 a year. In Japan, homes over 22 yearsΒ oldΒ are depreciated, so that $183 is just on the land. There's no tax on the house because it's ancient.

I own my home in Burnsville, Minnesota. It's very similar β€” 3,000 square feet, a garage. I bought it in 2017 for $300,000, and my taxes have gone β€” from 2017 to now β€” from $3,000 a year to about $5,000 a year.

I may be a little bit cavalier about the situation. I knew that no matter how bad the house is, it's nothing that I haven't seen. I just felt like, if I don't go visit it, but it's in the location that I want, that's what real estate is about. That's what these houses are really about. You can fix things, you can make the house better or worse, but you can't move it.

I grew up in Japan and long to move back for retirement

I grew up in Japan, so it helped make the decision easier. I grew up on a US military base in Misawa, Japan, in the Aomori Prefecture. My mom was a government teacher, so I lived there for an extended amount of time.

I officially moved to the United States when I went to college. But when I grew up in Japan, I had a huge desire to own property there, but it was always seen as impossible. My mom, my sister, and my brother-in-law, who's half Japanese, just always accepted it as something you can't do β€” that it's too complicated, or you have to get residency.

I reached out to AkiyaMart for a consultation. They pitched me on being the pilot person for their buyer program. I think it worked out perfectly.

The back of a home and yard in Japan.
Buhrow's yard in Japan.

Courtesy of Erik Buhrow.

My biggest aimΒ was to be surrounded byΒ the culture of Japan.Β I grew up on a military base, so I know what it's like to be around foreigners in Japan. Tokyo and Osaka are very tourist-driven, and it can be really difficult to learn the language and truly learn the customs.

The Sea of Japan, or western, side of the country is known for not being very heavily touristed or westernized. The house I bought is on the southern portion of the Tohoku region of Japan. You still get snow, but the architecture as you get further south in Japan gets to be, in my opinion, more beautiful. You have tile roofs and things of that nature. If you go north, you get more flat metal roofs.

Because I'm in construction, I care about home design. So this was a beautiful in-between spot where I could enjoy a southern-style home, but in a snowy northern climate, and also still be close to Tokyo.

The closest city-slash-train stop for the bullet train is 20 minutes away. I can hop on the bullet train and be in Tokyo 90 minutes later.

The prices in that area are lower because it is more remote. It allows you to explore in this adventure of buying a foreign property without having to spend hundreds of thousands of dollars.

I plan to rent out my akiya to other Americans weighing moves to Japan

I'm also in the process of buying another akiya property two minutes down the street. The original premise to buy the second home is based on my sister and brother-in-law, who both grew up in Japan.

In the meantime, I'm hoping that I can turn the second home into a long-term-stay place. I can allow people thinking about doing the same thing that I'm doing to stay there one to three months while they try and figure out is this something that might be a fit for them.

The front of a home in Japan.
The front of Buhrow's home in Japan.

Courtesy of Erik Buhrow.

Because people are curious and they're interested in living in Japan, but they don't know if it would work. Somebody could go, "Hey, Erik, I want to stay in your house for a month, use your car, use your Wi-Fi, and figure out if this area fits my goals."

Or maybe my renters will want to work remotely in Japan for an extended amount of time.

My life goal would be to retire in Japan. However, because of visas and complications, it's not that easy.

I look at buying the akiyas as a new adventure in life, a new chapter. If you're not continuing to write new chapters in your book, then it gets kind of boring to read.

Read the original article on Business Insider

Spurned real estate star plans late career revival powered by AI

2 January 2025 at 06:27
manhattan skyline

ozgurdonmaz/Getty Images

  • Commercial real estate sales star says data from his 40-year career is key to unlocking the power of AI.
  • Bob Knakal has sold $22 billion of property, making him one of America's most successful brokers.
  • He says he was fired by property giant JLL in February 2024. Now, he plans a career revival.

Bob Knakal climbed to the top of the commercial real estate sales business by focusing not on billion-dollar Manhattan skyscrapers, but on the tens of thousands of ordinary apartment buildings and land sites across New York City.

Now, the 62-year-old sales executive is adding a new approach by using artificial intelligence.

He says his new sales firm, BKREA, will harness property data and market observations that he has meticulously collected since the mid-1980s and couple it with the blooming powers of AI.

Using the much-heralded technology, Knakal believes he can compete with far larger real estate services companies with only a handful of employees. BKREA presently employs 15 workers and Knakal doesn't imagine getting much larger.

"The extent to which the world is going to change over the next five years is going to blow away what's happened over the last 40," Knakal said. "Realizing that, the first thing I did when I started the new firm – my first hire was an AI guy."

Many commercial real estate firms and professionals have begun to use AI – or have plans to β€” in order to gather market insights and sort through mountains of data, produce promotional and marketing materials, and help organize and manage client relationships and outreach.

Knakal says he believes his firm can harness the technology more effectively in its niche because the quality and consistency of his data is better than those of rivals.

Although New York City's property records are available to all online, Knakal has gathered reams of proprietary observations over the years, including nuanced information that is often not public. A rental apartment building slated for demolition and redevelopment, for instance, may have had holdout tenants that compromised its value. A vacant land site, meanwhile, may have an access agreement with its neighbor that would allow construction work to proceed more smoothly, enhancing its price tag.

If "you're putting bad data in, you're getting bad data out," Knakal said, adding that he spent three years during the pandemic "personally verifying 2,417 development site sales in the city" to further glean such insights.

"So how do I compete with the big firms?" Knakal asked. "Show me even one of them that's had the same head of research for 10 years."

Tenure at JLL

If Knakal, whose outward demeanor comes across as perpetually sunny, seems slightly irked by some of the big corporate real estate firms that dominate the nation's commercial property sales and services businesses, that's because he is.

Knakal built his career largely outside of that world, founding the small brokerage company Massey Knakal in 1988 with business partner Paul Massey. In subsequent decades, the pair grew the company into one of New York City's largest and most prolific property sales firms. In late 2014, the two men sold the 250-person business to the global commercial real estate company Cushman & Wakefield for $100 million.

Knakal joined Cushman as part of the sale, but left in 2018 for the rival corporate real estate services giant JLL.

Knakal's tenure at JLL came to an end in February 2024 when he was abruptly fired.

Recounting his exit, he said that he had been a guest on CNBC early that month to discuss the property market with the news anchor Brian Sullivan. He was subsequently warned by a person from JLL's marketing department that such media appearances first required company approval. Knakal said he explained to the person that his employment contract offered him "unfettered access to the press."

Shortly after, Knakal was the subject of a weekend profile in The New York Times. On Monday, he said he received a call from a JLL executive requesting an urgent meeting. Knakal sat down with the executive in a conference room in JLL's Manhattan office.

"As soon as I walked into the room, the head of HR walked in," Knakal said. "I knew I was being fired."

Knakal said his dismissal capped off what had been "the dark ages of my career."

"I don't think they appreciated what I brought to the table," he said.

A JLL spokesperson said: "We thank Bob for his contributions to the firm and wish him all the best in his future endeavors."

Massey, who also departed Cushman in 2018 and remains close with Knakal, said that while Knakal was one of the "most upbeat people" he knows, he had become "honest about how he was feeling: he wasn't having as much fun" in the commercial real estate business.

A desire to adapt and compete

BKREA mixes in analogue elements as well. In his new office on West 36th Street is an enormous printed map of Manhattan below 110th Street on the west side and 96th Street on the east to the island's southern tip. Propped across 8 tables, the 24-foot-long, 8-foot-wide printout details 27,649 commercial buildings and development sites in a way that both conveys the immensity of the market but is also more comprehensible to the senses.

A map of Manhattan laid across a number of tables
Bob Knakal's map room

Daniel Geiger

Seth Samowitz, a 30-year old data expert who Knakal hired earlier this year to spearhead BKREA's AI efforts, said that he first thought having the giant map in an overwhelmingly digital world was "crazy." He has since come around.

"Honestly, it's the best marketing tool in the entire world," Samowitz said.

Knakal said he has used the map as a key prop in pitching his services to 26 clients so far. "I've gotten 26 exclusives."

Currently, he has been hired to sell about $2 billion of property assets, his largest pipeline in years. Knakal said he has sold 2,342 properties totaling about $22 billion over his career, more than almost any other broker in the country, he believes.

James Nelson, 49, now head of tri-state investment sales at Avison Young, began his career at Massey Knakal in the 1990s. He considers Knakal a mentor, saying that he admires Knakal's hunger to continue to adapt, innovate, and compete.

"Bob talks about what he's going to be doing in 10, 20, 30 years and it's being a broker," Nelson said. "He enjoys the process and the thrill of the hunt."

Read the original article on Business Insider

It sure looks like OpenAI trained Sora on game content β€” and legal experts say that could be a problem

11 December 2024 at 14:01

OpenAI has never revealed exactly which data it used to train Sora, its video-generating AI. But from the looks of it, at least some of the data might’ve come from Twitch streams and walkthroughs of games. Sora launched on Monday, and I’ve been playing around with it for a bit (to the extent the capacity […]

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