welcome to Dental Unscripted for Mike Dinsio and Paula Quinn break down the practice ownership journey one episode at a time starting up buying and running a successful dental practice all right all right welcome back to another episode of Dental Unscripted my name is Michael Dinsio uh we also have uh our other co host star of the show Miss Paula Quinn and today we're talking about all things dental leases so super fun super fun topic however it comes up all the time
somehow I get dragged into the conversation yet there's a real estate person and an attorney and all these people and I get asked some of the most basic questions of a of a lease and I don't wanna answer them so I figured let's have a podcast and uh bring in a professional that really knows this stuff like it's their everyday job so welcome to the show Dan Gleissner Dan's been on the program before welcome back my friend thank you for having me
I'm not sure I want to answer those questions either though haha well it's your job so you're gonna have to um no man uh welcome back we had we had a great uh episode the last time you were on and I think just like Dan is they're you know they they're very very important and it gets overlooked and how important they are and it's super important to have the right people look at these things and um you know they're complex situations and so I I think for any doctor that's um
buying or starting or even owns a practice and you know their lease is coming due all this stuff is really really important um and so thank you for being on the show and contributing a little housekeeping if you're watching this on startup unscripted or Dental Acquisition Unscripted we're merging to one brand that's easy and simple called Dental Unscripted and the goal is is to have episodes that don't just talk about start or buy but also how to run your practice and tips and tricks
uh Paul and I just did one this morning about hygiene if you if you caught that how to boost your hygiene department we've talked about culture in a practice we talked about some leadership stuff so all things that you guys need to be thinking about if you are buying or starting but also a lot of you own now we love to have new content so dental and script is the answer there um okay without further do we're 3 minutes in and I know if I don't hit it quick we're gonna lose you
and you'll turn it off on your way to work or home so with all without further do Dan why don't you give us a little bit about your your new company congratulations on launching your new uh agency want want you to tell us a little bit about like that and then we'll get into some fun lease stuff yeah um Allied Healthcare Real Estate is a commercial real estate firm we're based out of Colorado we specialize in healthcare I specifically work with dentists day in and day out
I've been in the dental field since 2008 that's it short and sweet I love it um I think it's really yeah there's no there's no reason to mix words um I think it's really important to have a dental professional obviously handle the situation I I sometimes get into the whole well I've got a buddy or this guy has negotiated a couple dental leases before I think he can do it I cringe when I hear that how would you respond to that because no a real estate agent can't do this stuff like
and so like what are the risk is that what you mean Michael like yeah like why why yeah what like don't you catch if you're not if you haven't done this you know yeah there's there's a lot of nuance to dental lease I mean the the analogy would be like hey my chiropractor should be able to clean my teeth right they're both doctors how dare you go there so but it's that's that's the reality of it so it's I mean if you specialize in something you're gonna know the ins and outs of of it all
and then what it takes to put a project together I mean if we're looking at a startup there is a lot that goes on and uh majority of it has to involve around the bank so we have to understand the parameters of the bank and negotiate with the bank and get their blessing before we sign anything a lot of commercial real estate brokers will just go out and find a space and get the doctor sign right away because that's their job they don't understand what's on the back end with financing
or do they truly care right they're they just want to move on get their commission and call on the next general commercial real estate requirement yeah no I I I'll never forget a comment from another broker and Dan you know him his name is Christian Gyle and he's out of Arizona and we did a a week of Shark Week with real estate folks and he said that brokers have commission breath all the time oh yeah and I'll never forget that comment um and it's so true brokers can real estate professionals
brokers whatever you want to call them they they have a job to do and they're trying to make money and right they work for free until they until they get paid and um I think I think it's um it's it's it's it's the reality and I I think it's great that you I've started this organization that thinks something thinks a little differently and um what are some of those ways I know you do lease renewals I know you look at leases for for free as a service
like what are some of those things that you guys do that won't require a fee but every doctor needs to do oh yeah so a lease assessment understand if you're where you are within your market uh in general right now the press does a pretty good job of saying that commercial market is down right if you hear about commercial real estate you're thinking like I'm gonna go steal a building right now for for pennies and that's not the case but sometimes it can be the case it's variable right like I'm
I'm in Colorado and I can get you a screaming deal downtown I promise you a really really good deal on a general office space because there's vacant towers and but do you want to be downtown and if I'm a startup doctor and I want to be on the north side where all the growth is happening northeast I can't get a piece of commercial real estate it's not being built fast enough it's at all time market highs and the landlords are being super picky so it's
it's understanding where you are within the market I think that's first and foremost understanding the value of your build out and whether the landlord understands that value or not uh because there is significance I mean we're talking about hundreds of thousands of dental infrastructure that's built into that space that's different than the next door suite uh it's understanding when your renewal date is and how to leverage that we like to talk to tenants
two years out and put a game plan together I mean if they're looking to go ground up we probably need a little bit more time but given the cost of construction depending where you're at ground up hasn't really been an option in the past couple years so you guys have done a you guys have done a great job helping me and some of our clients um specifically in Colorado where you'll look at acquisition leases and before we actually ink the deal you'll give us some comparisons you'll you'll take a
a look at a lease review if there's room for you you're you're there but if there's no room for you you'll you'll sit on the sideline and I love that about you you've always done that uh even at your previous company and that's a huge service to the industry to me to dentist I I don't think people really appreciate good brokers like you guys are in the great information you can offer without asking for a fee and um knowing your lease and really getting into it matters and and um yeah
it's awesome that you guys do that so thank you for that let's let's let's pivot um and Paula when you owned uh you might not have even remembered any of this stuff but uh we're gonna cover one of the topics that was really important to you when you sold your practice and so if you remember any of this stuff when you were looking at your lease maybe you will maybe you won't but I'd like to get into like some of the intricacies of the actual lease that cause people a lot of like the
you know I don't know anxiousness I think everybody really thinks about the price the price the price the price the escalation the I it just like I used to be a lender they think about interest rates the interest rate the interest rate interest rate and there's a lot of other shit they needed to be thinking about other than just rate like payment terms and uh interest only periods and how much working capital like there's so much more than just the dang interest rate
and I think that's what happens in your world Dan and in the lease rates so I wanna get out of the lease rate let's not talk about lease rates but let's talk about the other things that you need to think about when you're when you're looking at a lease what are some of those things Dan that you would like to highlight I didn't give you much preparation so uh in in typical unscripted fashion but what do you get a lot of questions about with these leases if they actually read the lease oh yeah
it's understanding um assignment language is is a big one exclusivity is a big one uh understanding uh triple nets is is always a gotcha and then especially if you're a business owner and you've been in the space for more than a year the triple nets will come up and there's a lot of questions around that um uh you know a lot of the lease is gonna be attorney based and there's always should be an attorney on the team I'm not an attorney my goal is to negotiate the business points
and get the business points right in the lease and some of those teeter on illegal and should they be talked about in the letter of intent the non binding letter of intent and then those ideas then inserted into the lease that will be legally reviewed so it's it's depending on where you're at in your career what you're looking for how to separate yourself or how to protect yourself yeah well let's hit the big one exclusivity and assignments because I think well what
what the hell is it I know what it is you you tell everybody else what what does that mean exclusivity and it's two topics but let's hit them both yeah so if you have an exclusive in the building that means that no other we'll say general dentist as the example that no other general dentist can can practice in that building so you're it for for the building and um a lot of doctors get caught up in that and it's important if you're looking at a retail space so if you're in a strip center
you're likely gonna be spending more on rent than you would in a general office building and that's because you have signage and that signage is you know free quote unquote free marketing so you have to pay for that right that's the air quote free so you'll get concessions like exclusivity for other general dentist that can't practice in there and that's because again you're already paying for it and if another general dentist were to move in then there's no
point in paying the additional rent to have it so that's where it's standard and we we see that in strip centers or stand alone buildings then we transition to a general office or a medical office building and we'll start with general office where there could be a CPA next door to a dental office next to an attorney next to a chiropractor and those lease rates tend to be a little bit less and you don't get as much with that right so there's no signage there's no nothing there
it's just you get office space very cheap rent and you go uh to have that exclusivity there is difficult cause now you're hamstringing the doctor from leasing the rest of the building right so or the the owner of the building your your hands yeah the landlord the landlord so the landlord's not able to to lease more of the building out so they don't want to do that so um and if you're driving by a general office building you don't know if a dentist is in there or not
the reality of having a dentist right next door to you and a patient walking by office a when they're going to Office B and saying hey I'm gonna switch my doctor is very very low right it's that's a that's an astric type situation so when negotiating business points in a office space spend your time on lease rate spend your time on free rent spend your time on tenant improvement allowance things that will actually help your cash flow and in help separate yourself when you need the separation
versus you know trying to have exclusivity cause if a general Dennis was to be in that area they're gonna be in that area regardless if it's in your building or not it could be a block I almost think like if you switch dentist you're probably gonna wanna stay away from the building you're probably not gonna wanna walk by your dentist to admit you're probably gonna be like I'm just getting out of this building in general right I mean right absolutely right yeah you're gonna yes
you're not gonna go back you don't wanna be seen you don't wanna have that awkward conversation right right exactly oh like slide her away and like especially if you owe money you're not going back right Dan Dan I've gotten I've gotten into weird conversations about the exclusivity thing where a general dentist wants to do Ortho or wants to do some pedo some pediatrics and they're fighting for this exclusivity and then it starts getting real weird where it gets very specific
like can't do children's trophies or like like it starts getting real specific and I've heard you correct it you debunk this but I've heard the more specific it is the more it hurts you kind of a thing or do you want to stay broad like what's the strategy there because again GPS could ask for exclusivity and then want to do clear liners and next thing you know you're in a lawsuit or whatever so what what's the idea there yeah so again if if your business model is
general dentistry and orthodontics and you want to advertise that on a on a sign then you can negotiate for general dentistry and orthodontics in a retail center if you're in a medical office building or office building again the the chance that you get exclusive is very low to begin with and and if you are going for that you have to call out what your use is general dentistry is a little tricky right cause that means it encompasses all dentistry
whereas if you're pediatric or ortho or oral surgery you're very specific in what you do so you can't call out like hey I I have this broad term where I can do a whole bunch of different procedures so uh it's that's always a catch and it I've seen it ruin relationships uh within the market if they're in the same building because again doctors have the right mindset of they're trying to protect themselves but this general dentist was already doing child procedures to begin with most likely right
it's gonna be a family practice and the that general dentist is gonna know where their boundaries are and when to send off to a specialist but if that general dentist was across the street they'd still be doing the child trophies and it's all you're doing is creating detention with your partner in the industry for no reason right both practices can be successful if a general dentist is is stealing trophies from a pediatric dentist and the pediatric dentist is not succeeding
it's not because of that general dentist right there's other problems yeah get it gets very weird like I I feel like uh you know in the moment a a lot of our clients a lot of your clients they get caught up in the negotiation and I feel like it's our job as professionals to just like hey let's take a step back and and talk about what this actually means for your business and I think I think that's why they've hired us but in the in the in the world of negotiating
it's like you start narrowing down on this clause and they're like well what if I do want to get into Ortho let's box everybody out it's like okay let's just take a deep breath but um yeah um once it becomes more real that's usually like the deals happening especially if you're a startup and you haven't owned your own business before and you're about to go $750,000 in debt with a loan and you know risk everything push your chips all in to do this uh that's when the narrow focus on one or two
it's emotional items really come out because it's not it's probably not really the exclusivity it's more along the lines of it needs to be perfect in my mind in order for me to move forward so we have to take a step back and take a look at look at the economics that you're getting look at the area look at the demographics look at this opportunity you're about to start your own business in and whether you have this exclusivity clause or not it's really not gonna change how you do
no that's well said okay let's pivot Paula when you sold your practice when you sold your practice how would have it how would have it felt I said that weird but how would have it felt if you were trying to sell to the doctor that you sold to and the landlord said I don't think so that'd be a problem if the landlord didn't let you give your lease to the next person that'd be a problem yeah I didn't even know that was possible yeah that's what assignments are so let's talk about assignments
my landlord was my landlord was super cool like he didn't give a dude your land your landlord was so cool like half the stuff he didn't care but but it is a real thing I didn't know it was a real I remember you saying something and I was like what yeah he was like whatever sure you know whatever yeah so Dan how often do you see assignments being a problem on the first draft lease and you read and you're like dude that's not gonna work like how how often does that come up uh about half the time
the language is pretty pretty severe so uh sometimes there's language in the assignment that if you request an assignment the landlord can terminate your lease so the whole immediately terminate so wait I so I was gonna ask you about some pit balls of not having someone like you and this is probably one of the biggest ones they're gonna sign something and yeah well it's back well it's back to being a it's back to being a dental specific broker if a residential broker was looking at this lease
they wouldn't think anything of it but Dan sitting here thinking this doctor's gonna sell it some point right the whole point of having a commercial space is to own a business and that business is worth as much as you can sell it for or how liquid it is and majority of the goodwill is tied up within that location so if if we don't have the goodwill I don't know what we're selling for it's gonna be a chart sale so now we're talking about pennies on the dollar versus
you know over production so it's sorry I just Learned something ha ha ha yeah so Michael handles all this I I stay in my clinical world but wow so so 50 55 0% of the time they'll be an aggressive assignment clause or favors the lender yes yeah not that aggressive that's that's more outlier type situation determination but that we see that we'll call it 5% of the time uh majority of the assignment is just saying uh landlord's pure discretion whether you can do it or not
and what we're looking for is we're looking for the levers to have the assignment happen so a lot of times we're explaining to the landlord why this needs to happen right because one day we will be able to sell the practice or we'll need to sell the practice so we have to have the opportunity to so there's the assignment of just moving the practice into someone else's name and then there's the bigger issue that most people get tripped up on is the financial guarantee piece whether we can get
whether we can get off the lease or we have to stay on the tricky part the tricky part is when you sell a practice in your midterm so say you have five years remaining and you have a five year option so we have 10 years on paper that practice is financeable we hope that it's assignable right we can get go from Doctor a to Doctor B but does Doctor a have to stay on the lease after the sale and 50% of the time I'd say yes so and it's let's let I wanna ask one question on that Dan
is there ever an assignment of where it's specific that it has to be another dentist like not okay a like business yeah okay yeah and usually like that is that usually a requirement okay and I and I want to bring this full circle because this this idea of assignment so so important let's back up the landlords aren't jerks I mean that some of them can be total jerks but the landlords aren't jerks they have a deal with Paula Paula owns the practice Paula's been paying her rent for years
they trust Paula now all of a sudden because Paula wants to sell to Dan they don't know Dan but they have an agreement with Paula so the landlord sitting back saying well I signed a 10 year deal with Paula I I don't necessarily want to deal with Dan unless Dan is a good dude and that's where the landlords are coming from but wait but but a contract is a contract and even if dance I mean if dance has a contract he's in it he can't not pay if he doesn't pay he can be sued right
so but yeah so professional sorry Dan we're taking over in the in the example that I'm buying your practice Paula if you're retiring you're probably you probably have a net worth of a couple million dollars I'm a brand new dental student I've been practicing at a corporate office for two years I have a negative net worth that doesn't give the the landlord financial fuzzies warm fuzzies security that I'm coming in so it's like wait I I want the security of Paula because she's worth this
if something happens she can pay for the lease cause at the end of the day all I care about is for this land this this payment to come in on this on the space dance coming in he's not worth anything I'm nervous I got I got no teeth here what do I do so that's yeah yes so um so that's the the nuance of the negotiation at that point right is what how can we bridge the gap is it additional security deposit is it Paula you have to stay on for 12 months uh and then burn off is it that you
have to stay on the entire time for this five years and then Dan will take over the option in year 6 so all that's going through the landlord's head because all they care about is the money coming in and how how can they secure it so it's a lot of education with landlords about that and it's it's always very touchy because it's such an emotional process to sell your business like it's it's your child and you think that you're done but all of a sudden you have this least Lumen over you
right like I'm trying to go and it's one and it's one of the last things that gets addressed which it it almost should be one of the first things but just by the way the cadence works and why the the bro I'm a lawyer yeah you gotta make sure you like the practice first or it's like there's so much stuff to figure out before but I see what you're saying yeah cause you get here and now like dance talking there's this there's this other thing and so like we're what we're talking about is
I don't wanna get into acquisition stuff cause that's exactly what we're doing right now is kind of discussing acquisition stuff but like when you sign a lease as a startup or you're relocating and building your your brand new beautiful office you're an established doctor or start up someday you you're gonna wanna transition it to someone if even if you're in distress and you can't make your bills you're gonna I had a a DOC in Colorado actually she got she found out she was sick really quickly
after she opened her doors she was stuck and we had to we had to get her out of the situation and she had zero sales but she had to do that and having guys like Dan the hell Dan probably was the one that negotiated but I I think assignments so important it's something to check the box it's it's a very again rates are one thing exclusivities another thing like this these little things really need to be touched we're 25 minutes into the show I don't mean to keep going
but I really wanna cover something that you said and that was uh you know again it's not just interest rate and escalation but there's other expenses and I have a hard time explaining it because it comes down to hey look we're renting this building from somebody or this space from somebody but now I gotta pay all their bills too and they own the building like how's that work and it's such a I had a problem with that I of course everybody everybody does and then what's covered
and what's what is this yeah what's covered the roof the a a H back like what is this and I and I think it it comes down to like well if I'm paying you money why aren't you taking that money and paying your bills but that's just not how the lease world works so so the question you you said it Dan what's triple net uh Dan what's triple net and how do you explain this ridiculous and why why are we responsible yeah so uh yeah this is this is a a long one so uh triple nets are a three pass throughs
essentially to the tenant and you pay your prorated share of each of these pass throughs so the first pass through is property taxes so if you're in a building where it's 10,000 square feet you occupy 2,000 square feet you're paying 20% of the property taxes for that building the next is property insurance which is usually pretty small but the insurance world has gone upside down in the past couple of years and we're seeing increases of insurance 100 to 250% so it's a nominal fee right now
but it's still it's growing so that prorate share is passed through so property taxes on the building and then proper insurance on the building those are the two the next one is the enigma of camps so that's oh so Cam is the third end right well why do people okay let's go to that but some people pull that out for some reason it's just how it's built or how what they see how it's written but it's it's it's commonary maintenance it's what it is and it's what's it cost to run the building
landscaping snow removal ha uh it could be if there's common area restrooms it could be supplies for the restrooms it could be water for those restrooms utilities for those restrooms depending on the type of property it is or how the lease is written it could be roof it could be HVAC it could be property management fees could be property management assessment it could be snow snow could it be snow removal you said that oh you did OK it could be restriping the parking lot I mean
it's wild what it can all encompass and each landlord's got it written differently so depending on how the lease is written and you wanna just watch out for the catch all that everything is passed through and you wanna understand the breakdown of that triple net prior to signing the lease like what is the landlord passing through what's been the historicals the past couple of years what percent has it increased because what a triple net is is it's an estimated expense based upon historical years
so we'll say that a space is leasing for $30 that's how it's advertised plus triple net so you you see $30 and you think that's a good deal then you come find out that the triple nets are really $12 a square foot so now we're looking at a lease rate of $42 gross and that's a marketing scheme that's done like that on purpose to attract potential tenants of the building you're like oh thirty's good I like that then you find out the total gross you're like oh that's why it's advertised like that
this makes more sense so that $12 is an estimate based upon either projections or historicals if it's a brand new building you're projecting if it's historicals then you have data at least and hopefully you're with an earshot but what happens is January go ahead I get sorry I didn't mean to cut you off there I wanted you to finish but like I I guess I'm thinking if so so you said it and I just want you to say it again um the landlord does give you a breakdown of how
of what that looks like before you sign it that that happens if you ask you yeah you can ask they should be able to give you some of the buckets to see what it all incorporates I mean you could be opening Pandora's box because then uh tenants think that they can control some of those expenses which will get to but in reality you can't right that's the landlord's in it to make a profit off their building they're getting paid base rent that's the market rate
and then those pass throughs are your expenses so I have I'm a landlord for a home and what I'm hearing is I should buy a building because everything can be passed through the tenant right where I'm still responsible for everything that happens to the house I like the building idea better wow yeah I I guess I'm I I guess I'm thinking here that like folks I want you guys to think about this so you you wanna look at this because let's say Paula owns the building cause that's
she just came up with a new business plan tonight so Paula owns the building and I'm her business partner which is a true story okay so I own a small a snow removal company and I have a contract with Paula who happens to be my business partner and I Jack up her rates on snow removal and I cut her in on that profit of snow removal so there the the triple net expenses can be I've seen weird stuff before like that scenario where expenses aren't respond like they're not very solid
so do you guys do do you look at that Dan how does that like competitive like it's like why are they why is there snow removal thousand bucks a month and it goes all the way into June so it's so for our clients we'll take a look at year over year because the way the triple nets work are it's an estimate so we'll say the $12 a square foot landlord said hey $12 for 2025 and 2026 all of a sudden come February January they get a Bill for $6,000 of assessments
and that's because the landlord reconciled their books of what the actual expenses were for 2025 and if they were short tenant needs to pay up PA Paula we just got an email from Doctor Rock in Arizona and he was pissed that he got that 5 600 dollar Bill and it was because the landlord underpaid his triple nets and so he had to pay the difference because they miss they misestimated it on the space yeah so it's all it is is an estimate what about whoever was in the building before
why weren't they responsible why don't they would have got prorated they would have got prorated if you leave middle yeah so Doctor Rock for example if he was in the building uh February through December he would have paid February through December assessments he wouldn't have paid for January uh but that's that's how that works so that estimate is just an estimate and then at the beginning of the year they'll they'll reconcile their books if they overestimate estimated
they'll get a credit on their account if they underestimated the tenant has to pay but you're looking if it if you happen to get in a building that was already there you're you look at historicals you help the yeah so it's like we're not there's no way we can do we ask did you reconcile your books do we ask them that so they reconcile their books every year uh it's just whether or not they're cooked or not those books so it's if they have the buddy that is a snow removal specialist
that charges 500% of what market is we're doing like like we don't like we don't own snow removal companies we don't know how much snow removal should cost or shouldn't cost so you're trying to take the landlord at their word however like so there's multiple things here with that though cause if you're the landlord you wanna have triple nets as low as possible cause if you have vacancy you're paying those costs and if you if your expenses are through the roof your tenants are pissed you
I mean that's not a good way to keep your tenants so a smart landlord will not cook the books they will keep running their business at a low low cost to keep everyone happy and when taxes come in which taxes are the lump majority sum of the triple nets at least the first n the first n that you said is property taxes and then as soon as they get their assessment and if it's gone up they should be contesting that assessment but yeah it's it's it's tricky and it's frustrating every single year
because every year you're gonna get that Bill so it's almost let's let's talk I I love that I mean this has been a fantastic conversation already I can just send this podcast to every startup that starts asking these questions be like hey just just watch this I'll save me a coaching call and it'll be better than what the way I could say it but I know enough to be dangerous Dan help me out in talking about the big things because I think the big things need to be discussed
and I'm thinking HVAC replacement I'm thinking roofs how do you protect our lease sir leases leases on oh shit I just signed a lease and the H back remember we had that happen here in a Z we had that happen yeah now we're talking about Arizona stuff not snow plow let's go the other way H back they're all the air conditioning going out yeah because I've seen it don't Dan don't you guys negotiate that out or something like that no it it depends on the on the property
so if you're in a medical office building typically the HVAC's gonna be on the landlord it's gonna be landlord's expense general office building they could do an assessment and charge back to the client for some of those costs hopefully not a lump sum it's just and then a retail space the H back in the roof are typically on on the tenant on the tenant so it's trying to negotiate where you're not hitting you're not getting billed for that capital improvement
all at once you're getting billed over the lifespan of that H back unit so instead instead of you know 30 thousand dollar Bill that's now spread out over 20 years that's just part of the cost so that makes sense even though the H back may never go out you're just paying right prorata of the life of the life of that asset so so you gotta you gotta hire crane operators to put these HVACs up on the roof we saw one the other day Paula and that that's expensive
and so to to replace an HVAC system on the 20th floor of whatever building is really expensive not to mention the other H backs might be okay but they could go out at any point so now now we have the crane operator there and paid for so we might as well just do all of them and then imagine all those leases paying all of that one lump sum boom and then you know the the H vax good for maybe another 50 years but that poor those poor LC's in that moment had to pay for all of that
so if Dan's on the job he's gonna try to spread that cost over maybe 20 years or something so that's something that you negotiate Dan or no yeah no that's that's an item that we look for gotchas right like we're trying to stay away from gotchas we're if we're a startup cash flow is is king for us right we we have to minimize all of our costs as possible so if a big gotcha pops up then that's that could be really bad for us so it's how do we minimize that risk like can we first start by saying
hey landlord age backs 100% on you and then in the negotiations and and go back and forth and then end up at well if a large capital improvement goes out or need is needed then we can spread that over the lifespan of that that unit and it's it's not fun cause you're still paying that Bill but you're not paying that Bill in a lump sum yeah so in the residential world it's kind of called a special assessment of some sort right like a big thing that needs to be right like your HOA
you get the HOA dues but then a big like an elevator goes out of your complex that's like a special assessment maybe some of you have heard that before but same thing in the commercial world um yeah I mean like needless to say like there's a lot to a lease that you gotta look at other than just simple base rents but what I heard there was that base rent is the actual profit for the landlord and then their expenses are kind of covered in Cam aka triple net lumped in
so you're paying all the expenses and overhead of the landlord's building including all of the improvements and then the base rent is pure profit that's what I heard yeah assuming that's paid off right the most you know probably majority or overwhelming landlords are in debt for their building so that's paying for to cover their debt and then anything remaining after that would be profit love it Paul any questions about that I mean I know you're yeah um Dan I Learned a lot I mean I'm just hoping
I'm hoping that people don't associate this negativity with me so when they see see me they're like oh you're the triple net guy no no I I think I'm a you're the guy that protects them from making a costly mistake when it comes signing a lease with triple net yeah I you know I guess I found that over the years the more people are educated about what they're doing the faster they're running towards the deal if if if if you're being if you're in a situation where you feel like
your broker isn't going through all this stuff um maybe you need to give Dan a call not that Dan wants to get in the middle of a relationship you already have but you gotta look at this stuff it's important you gotta know your lease you gotta know what options you have and don't have and to Dan's point in the very beginning of this conversation is sometimes not all the deal points are important to you so don't die on the hill over something that's not really
important and maybe that gives Dan the ability to press on something that is important that's called a negotiation I think that's really important to understand the differences so um Dan any any last kind of minute last kind of thoughts about complexities of lease and we covered a lot of really good stuff here but any anything else you wanna say that that kind of closes this topic up yeah so all of those conversations are the business end upfront and then all those get inserted into a lease
and then you gotta go through it again but from a legal ease perspective which is you know a completely different lens so it is it's it's a thorough process it it shouldn't you shouldn't get a lease and sign it within a week in likelihood it's gonna take you know four to six weeks to get through that lease properly and go back and forth with the landlord would you say from the moment Dan Gleissner sends an LOI to the moment it goes through your process then legal like you just said
what's the average time frame for that yeah two to four months two to that's what I thought yeah two to four months four months would be long but it but for sure yeah it could take that long okay very cool um thank you so much for your brain your acumen your service to the industry it's been it's been really good um we will be putting Dan's information down below and and uh and if if you're seeing this on YouTube or any of the podcast we'll put in the description links to get
get a hold of Dan like I said it cost nothing to have Dan look at your lease like literally nothing so have a professional like Dan look at that lease just to spell out everything that you're you're dealing with so that you know your lease really well and what options you have and um and make make the right decision I and I will say for those of you that own practices um or or folks that um you know though thinking about making a change one of the biggest things is look at your lease
at least two years before it expires because and Dan I know you'd say the same because what is Dan gonna do with a lease that expires in three months uh he's got no leverage with the landlord but if if you approach Dan to review your lease two years before it expires he can do a lot with that that time um a lot of people a lot of people go to you Dan I'm sure last minute and you're like what you're screwed buddy so yeah we have to find a turnkey option in order to create leverage
but yeah it's you we want to be on the offense versus the defense and we want we want to assert our game plan and maximize that through proper timing yeah I love it I love it well again thanks so much Dan folks please like subscribe do all the things but Dan's information will be there Paula I think we've got a new business strategy at next level so let's go buy some buildings Dan you will represent us on that building uh without further do let's shut the program down
but thanks so much guys for your time today alright alright thank you see you guys see you thanks for listening let us know how you like the show rate us on apple and Spotify subscribe and follow for more