This past month, a milestone was passed that went largely un-noticed. China exported more goods in Remnimbi then in US dollars for the first time in modern history. This means that more and more countries are willing to do business with China.  When you consider what it means to be financially responsible, a few things come to mind.  You pay your bills You follow a set of well established rules You earn more than you spend Countries that don’t follow these principles get punished internationally. You see their currencies fall in value. Countries that can’t be trusted don’t have the privilege of borrowing in the own currency. They must borrow against a financial standard that is going to be predictable.  But when you are the world’s reserve currency, you can get away with breaking a bunch of these rules without much consequence. The international community will give you a pass.  ------------- Host: Victor Menasce email: [email protected]

On today’s show we are taking a look at why we are experiencing a banking crisis. There are those in the Federal Reserve and in the media who are critical of recent bank failures. Those banks were irresponsible and didn’t hedge their interest rate risk properly. Silicon Valley Bank in particular received heaps of criticism for not hedging their interest rate risk. But let’s step back for a moment and look at the big picture.  We have more than 10 years with interest rates being held near the zero bound. In that environment, interest rates on loans have been at historic lows. The problem is that our banks have a fractional reserve system. If every depositor comes to withdraw their funds all at once, the bank will go broke. Every bank, not just poorly managed banks, every bank will experience the same outcome regardless of size.  ----------------- Host: Victor Menasce email: [email protected]

On today’s show we are talking about why the math of home affordability is broken. The critics of home affordability put the blame at the feet of developers and home builders for not building affordable homes.  But the price of homes in the resale market is set entirely by market forces. This is a function of the laws of supply and demand, combined with the ability to pay.  The simplest evidence of that is the fact that many homes were selling above asking price over the past three years. There is nothing forcing a buyer to offer above the asking price for a home.  Who is to say that homes should cost less, when clearly buyers are willing to pay more. The value of any asset is always viewed through the eyes of the buyer and what they are able and willing to pay.  ------------- Host: Victor Menasce email: [email protected]

In the world of economics, it’s vital to understand energy. Energy is the economy. The economy and real estate are connected through multiple threads. The ESG movement of environmental sustainability and governance has its heart in the right place. The problem is the so-called greenwashing which is the process of adopting the branding of something green and environmentally friendly, but doing something dirty under the covers.  On today's show we are going to be digging into some pretty shocking movements under the banner of ESG. -------------- Host: Victor Menasce email: [email protected]

Today's question comes from Ms. Cortes in Atlanta who asks: I’ve been offered an opportunity to invest in a ground up construction of a new warehouse located near I-10. I’ve sent you the entire package of information from the deal sponsor including the webinar and the investor package. I’d love to get your perspective on the offering and whether this is something you would consider investing in. ----------------- Host: Victor Menasce email: [email protected]

Matt Pestronk is based in Philadelphia and specializes in redeveloping office assets in the North Eastern states. On today's show we are talking about the subtleties of office conversion projects. You can connect with Matt at postcre.com ----------------- Host: Victor Menasce email: [email protected]

On today’s show we are talking about the process of getting approvals for even simple projects.  We are talking about a project that recently received full approval to move forward with construction. Even in cases where the zoning is not changing and no new buildings are being built, it is possible that the site plan application results in a review of similar scope as a major planned used development. Some areas are more difficult to develop than others due to the simple physical attributes of the site. The property in question is in Winterhaven Florida. This is the site of our next industrial outdoor storage project. I’m pleased to report that this project has reached full approval to move into construction. Winterhaven, like much of central Florida has a lot of lakes. I mean a lot of lakes. On today's show we are talking about some of the complexity of designing in an area with a high water table. As many of you know, our development company at Y Street Capital is very active in the world of storage among other things.  I’d like to invite you to an educational session where we are going to do a deep dive on this subsegment of the storage asset class called industrial outdoor storage. The webinar is going to be on Tuesday May 16 and there are a few time slots to choose from.  If you’d like to attend the webinar to learn more about IOS, click on the link in the show notes where you will have the opportunity to register for the information  session.  This will be a relatively short webinar focused primarily on education you on the various factors, metrics and requirements of the industrial outdoor storage segment.  To register, click on the LINK ------------- Host: Victor Menasce email: [email protected]

On today’s show we are going to look at an asset class that continues to attract attention from both individual investors and institutional players. That asset class is storage. Storage is seen as a recession resistant asset class. There are clearly many signs that the global economy has entered recession, even if there have not been any official announcements to that effect.  But saying storage alone is too simplistic. The asset class segments further into many types of storage, each with their own specific needs and customer base.  As many of you know, our development company at Y Street Capital is very active in the world of storage among other things.  I’d like to invite you to an educational session where we are going to do a deep dive on this subsegment of the storage asset class called Industrial Outdoor Storage. The webinar is going to be on Tuesday May 16 and there are a few time slots to choose from.  If you’d like to attend the webinar to learn more about IOS, click on the link in the show notes where you will have the opportunity to register for the information  session.  https://event.webinarjam.com/register/2/5yq61fn ------------------ Host: Victor Menasce email: [email protected]

 On today show we’re talking about housing needs in manufacturing corridors. Yesterday I attended a meeting involving politicians and city staff from five different communities along the St. Lawrence River seaway. Many of these communities have experienced a resurgence in Manufacturing as North American companies have expanded domestic manufacturing capacity. During the pandemic these communities experienced a huge influx of population from people seeking a lower density lifestyle with incredible outdoor amenities and still remain within an hour of a major city.  The problem is that many of these communities are experiencing a severe shortage of housing. That is a combination of new housing, affordable, housing, or merely available housing at any price. Several themes stood out from the conversations involving politicians, city, staff, and major employers. The employers are struggling to attract new workers because of the lack of available housing. So instead they are just poaching from each other instead of growing the pool of employees.  --------------- Host: Victor Menasce email: [email protected]

On today’s show we are talking about one of the most overlooked line items in a property budget. This is the dreaded repairs and maintenance line.  Operating budgets make reasonable assumptions about the natural timeframe for equipment replacement, and the lifetime for windows, roofs, caulking, and so on.  Where it gets difficult is when big ticket items hit all at once due to supposed one-time events. It seems like no property owner is immune.  ---------- Host: Victor Menasce email: [email protected]

On today’s show we are looking at the underlying data that is being used as central in the narrative about the health of our economy and the flight against inflation.  The message out of the White House and the Fed is that the economy is strong, too strong even. Look at all the strong employment numbers.  Each month we keep hearing how we have a hot jobs market.  Interest rates have to go up to fight inflation and the number of people entering the job market is indicative of a hot economy.  The fact is, if you look through the history of jobs reports you see that there is a consistently large discrepancy between the headline number that is reported and the subsequently revised numbers.  The headline number catches the headlines and that’s what sticks in people’s memory. Additionally, we see policy makers like the Federal Reserve setting interest rate policy based on those headline statistics.  But then those numbers get revised which means they were wrong. Decisions are getting made based on bad data.  How wrong do you ask?  Well, the March 2023 headline report was for 236,000 jobs created in the month of March. That was later revised down by 71,000 jobs. In February, the report was for 326,000 jobs. That was later revised down by 78,000 jobs to 248,000 jobs. The January number was revised down by 45,000 jobs.  I don’t want to mislead you. The corrections are not always downward revisions. The bureau of labor and statistics has been wrong in both directions. During the pandemic, they mis-reported the numbers of job losses by hundreds of thousands.  The problem is that interest rate policy is being set on the basis of a flawed model of inflation. 

Andrew Crebar is the CEO of Honey Bricks, a platform for enabling young, newly accredited investors to invest in private placement real estate projects. On today's show we are talking about this specific high income earning demographic and how they are looking for alternative investments with top notch operators. To connect with Andy Crebar, visit honeybricks.com ------------- Host: Victor Menasce email: [email protected]

Todd Sulzinger is based in Redwood City California. He spent much of his career in finance roles in the tech industry before moving into the world of real estate investing. On today's show we are talking about the Silicon Valley Bank failure, mobile home park investing, and fund management. To connect with Todd, visit blueelminvesments.com --------------- Host: Victor Menasce email: [email protected]

On today’s show we are looking at how AI can be a useful research tool for real estate investors.  A lot of emphasis for AI tools has been for mining the universe for information and writing new material such as blog posts. No doubt, there is some utility there. But the quality of writing is low in my estimation.  The real power of these AI tools is as a better research tool. There are many tasks that have traditionally been the subject of very tedious activity. Legions of virtual assistants have earned a living half a world away performing these low skill tasks.  Recent advances in AI have made some types of information searches extremely powerful. For example, you can ask an AI tool like Chat GPT for information about precedent setting court cases in a particular jurisdiction on specific regulations.  For example, I asked ChatGPT to list the precedent setting zoning cases in the Province of Ontario involving R4 zoning.  Within seconds, I had a list of three precedent setting cases in the Province of Ontario regarding zoning in R4 zones. I then asked for more examples. Instantly, the tool produced four more examples. By contrast, a Google search simply took me to a legal scholar site as a portal, but offered no direct reference to any cases.  As developers, we are often making risk assessments when it comes to asking for variances from the planning committee and ultimately city council. Understanding the case law can help provide developers with the perspective of where the appeals process has concluded in favour of the developer and when they have upheld the city’s decision. ------------- Host: Victor Menasce email: [email protected]

On today’s show we are taking yet another look at the macro economic environment. Virtually everything in the world of real estate investing is being dominated by the macro environment.   The Federal reserve increased the Fed funds rate another 25 basis points. They made the argument that future rate hikes are going to be data dependent.  I watched the entire press conference today and there were some obvious holes in the press conference.  The first major hole is that there were no questions on the Fed’s balance sheet. That’s astonishing to me. The discussion centered entirely on interest rates and there was virtually no discussion on the stability of the banking system or generating liquidity.   Chair Powell made mention of the most recent report on the retrospective of the SVB failure.  The insane thing about these bank failures is that the underly banks were fundamentally strong. They were weakened and eventually bankrupted by the outflow of deposits.  Chairman Powell said in his remarks that he recognized that his view of the current situation is at odds with history. But he said this time is different. He knows that the this time is different argument is not supported by history.  But it’s never different. The yield curve inversion is screaming, it is the market screaming at the top of its lungs that they don’t believe the Fed. The Fed has it wrong.  So what does this mean for us real estate investors?  I believe it means that we will see more bank failures, and that all the member banks themselves will have to come out of pocket to top up the reserves at the FDIC. That will weigh heavily on bank earnings across the industry. These reserves are not funded by the taxpayer. The fund is funded by the member banks.  More bank failures means tightening credit as banks lose the ability to lend money. They don’t trust their own balance sheet because they know their balance sheet can change on a moment’s notice based on nothing more than rumour.  The second inning is over and the batter struck out at the plate. We are now entering the top of the third inning in this saga.   ------------ Host: Victor Menasce email: [email protected]

On today's show we are looking for tangible evidence of what investors are looking for. ------------ Host: Victor Menasce email: [email protected]

The Federal Reserve published an ironic report on the day that the FDIC took control over the First republic Bank. The report was all about the demise of Silicon Valley Bank. It was a retrospective of sorts on what contributed to the failure of the bank and what shortcomings were present at the bank regulator.  The thesis of the report is that the issues of SVB were unique to SVB. But that fails to address why there was a similar problem at Signature Bank. Or what about the problems at Credit Suisse, or First Republic Bank?  Under the Dodd Frank Act which was passed in the wake of the GFC the FDIC is supposed to hold 1.3% of all insured deposits in reserve. Well, it’s clear that the FDIC has nowhere near that amount being held in reserve.  The FDIC balance sheet was consumed by 50% on the SVB transaction. There can’t be much left.  So here we are, six weeks after the first bank failure.  In the immediate aftermath we were told that the cause was weak management and that the banking system is resilient and strong. Then we heard the same message when Signature Bank failed. Now First Republic, but the banking system is resilient and strong.  The fundamental problem is that there is a mismatch between the nature of the actual liquidity of the banks and the structural liquidity of the banks. What I mean is that depositors can request their money on any given day. But when the bank lends money, they lend it for long duration. So the banks’ true ability to generate liquidity is far less than the expectation of giving depositors their funds on demand.  We learned that lesson when Lehman Brothers failed in 2008. Lehman Brothers bank in the Bahamas was taking in LIBOR deposits which were of short duration. When deposits dried up, the bank became insolvent overnight.  Yes, Lehman Brothers was structurally flawed that is clear. But what about any bank? Are they truly in better shape? We have banking contagion. It is here. It was easily predictable, and our banking system is not resilient nor is it strong.  There are calls from the white house for increased banking regulation. But if you actually take time to read the SVB report, it is clear that the existing regulations were not actually being used.  -------------- Host: Victor Menasce email: [email protected]

 Our book this month is called “Thinking Fast and Slow” by Daniel Kahneman. Daniel Kahneman is a professor of experimental psychology at Princeton University. He is the recipient of the Nobel Prize in economics for his life work in psychology and how decisions are made that influence business, society and economics. This book is the result of decades years of research, including numerous academic papers on how thought processes in the human mind function. I thought this book would be very Powerful because there are many examples of flawed thinking in every day life and certainly in business. Moreover, the book was recommended to me by Ken McElroy, and when Ken has something to say, are usually listen.  ---------- Host: Victor Menasce email: [email protected]

Taylor Loht is based in Richmond Virginia where he has secured a FINRA broker-dealer license and is active raising capital for sponsor projects across the nation. So far he has raised $200M in capital. You can learn more and you can connect with Taylor at NTCapitalGroup.com. ------------- Host: Victor Menasce email: [email protected]

Today's show is a live talk from The Real Estate Guys Secrets of Successful Syndication Conference in Dallas Texas, held on March 23. We're talking about the principles of raising capital with investors. -------------- Host: Victor Menasce email: [email protected]

This question comes from Steve in Utah. Two years ago I bought a subject to rental property that has a loan with it that has a 2.25% interest rate fixed for 30 years.   A great deal for me!!! however back in November I noticed the loan servicer had changed.    Today this loan would be under wrote at 6%,    I did some quick calculations to determine the difference in value to the note holder with vastly different rates.   The differences are massive as shown in the chart with the amount of difference in interest paid at at the 5year, 10 year and 30 year points.   The value of a loan written at 2.25% has to be a massive discount from face value,  Also a factor with this historically low rate is the unlikelihood it’s paid off with a refi.    My Question is who is dealing with this loss on paper?  Who is bearing the consequences of holding a note that pays this low of interest in this climate?  Did the original servicer have to massively discount this loan to off load it to the new servicer?   What is happening with these notes that are not sellable without massive discounts to face value?  Is this the banking crisis in a nut shell?  weather its the bank holding treasuries it bought at very low rates, or note they made at very low rates,   isn't the outcome the same?  is it all marked to market now? ------------- Host: Victor Menasce email: [email protected]

On yesterday's show we talked about how there are signs of monetary deflation present in our economy. We discussed the definition of what is inflation and what is deflation? Today's show is the second in a two-part series on monetary deflation. On today’s show we are looking at specific examples of how money can disappear from the money supply. ---------------- Host: Victor Menasce email: [email protected]

On today show, we are looking again at the macro environment. So much of what is happening in the world of real estate is being dominated by the macro environment, which is why we keep coming back that. It’s specifically on today show we are looking at a definition for inflation, in order to understand deflation. There is a case to be made for deflation. Today’s show is the first of a two part series on deflation.  Now I know what you’re thinking. How can we be experiencing deflation when all of the statistics are pointing to inflation. In fact the Federal Reserve and central banks around the world have been raising interest rates in order to fight inflation.  You’re wondering - Has Victor totally lost his mind?  We have become accustomed to thinking of inflation, as meeting the consumer price index. The Bureau of labour in statistics has several metrics for price indices. There is the consumer price index which includes the more volatile food and fuel components. Then there is core, CPI, which excludes These more volatile components. However, in almost every case throughout history, it can be shown that these measures are not the inflation per se, but rather the symptom of inflation. The actual inflation is the inflation of the money supply. When you have more currency bidding for a fixed amount of goods and services in an economy, that excess money will eventually bid up the price of those goods and services.  So that’s inflation. But what about deflation? If consumer price inflation is the result of inflation of the money supply, then would it make sense that consumer price deflation would be the result of a decrease in the money supply?  -------------- Host: Victor Menasce email: [email protected]

On today’s show we are talking about how cities are getting pressure to perform better when it comes to turning around zoning and building applications. Many cities have earned a terrible reputation for being bureaucratic nightmares when it comes to getting a zoning application approved, or a site plan application, and in some cases a building application approved. Most cities have recognized that a new zoning application is complex and requires a multi-disciplinary approach. For that reason, most cities offer an informal pre-consultation meeting. This gives a developer the opportunity to get feedback from all of the city departments in a single one hour meeting. There will be the planning department, utilities, fire department, police department, streets department, the parks department, maybe even the local school district.   Having gone through countless of these meetings I can tell you that they are helpful compared with no pre-consultation, but they fall far short of what is ultimately needed. Cities have a job to do and they can’t spend a ton of time in meetings with developers on projects that are still at the concept stage. Who knows if these projects will ever see the light of day? I can tell you also from first hand experience, that cities often suffer from indecision that looks like moving goal posts from the perspective of the developer. In fact, I can’t think of a single application before a city that has not experienced moving goal posts. By moving goal posts, what I mean is that you get feedback from the planning department telling you what it will take to get your application approved. You hold your round-table pre-consultation meeting with all of the city department. Then you submit the application and the feedback from the city is full of surprises. --------------- Host: Victor Menasce email: [email protected]

Some days it seems like we live in an upside down world.   Today’s show fits in the category of “You can’t make this stuff up.” It’s just too bizarre for words, and it would be even funny if it were not for the fact that this is real. Charlie Munger, who is Warren Buffet’s business partner is famous for saying “show me the incentive and I’ll show you the outcome”. The latest bit of insanity coming out of the Biden White House is an idea whereby the government will charge a premium on borrowers with a good credit score in order to make it easier for those with a poor credit score to qualify for a loan. You heard me correctly. This is the equivalent of taking points away from an A student and giving extra marks to a C student, to make things more fair. The details are that a borrower with a credit score of 740 or higher will pay an additional  fee ontheir residential mortgage. ---------------- Host: Victor Menasce email: [email protected]

George is back in NY after spending the winter in Florida. On today's show we are delving into a topic that is explained briefly in a couple of pages in George's book on negotiation. His book is based on the course syllabus from when he taught negotiation at the law school at NYU for more than 20 years. ---------------- Host: Victor Menasce email: [email protected]

Jeff Schechter is now based in Nashville after building a sizeable turnkey rental portfolio in Indianapolis. On today's show we are talking about how the macro conditions are affecting turnkey rental assets and how it might be time to pivot into other opportunities. To connect with Jeff, visit highreturnrealestate.com ------------------ Host: Victor Menasce email: [email protected]

On today’s show we're looking at some of the most common mistakes that I see multifamily investors make in their underwriting. I'm presented with opportunities for multifamily projects of all shapes and sizes across many markets on a daily and weekly basis. Sometimes this analysis is performed by lenders, sometimes by mortgage brokers, and sometimes by the principals themselves. So here we go I'm going to give you the top five mistakes I see most often when looking at a multifamily apartment pro forma. ------------------- Host: Victor Menasce email: [email protected]

On today’s show we are taking a look at some economic metrics that are not getting much airplay or analysis in the mainstream media. But we real estate investors need to pay attention.   We continue to have both government and Fed officials talking about how the economy is strong and resilient and that we may experience a mild recession later this year. This most recent statement is the closest we have seen Fed officials acknowledge the reality of our economic malaise. On today’s show we are going to look under the covers in the economy to see what is really going on. ------------------ Host: Victor Menasce email: [email protected]

On today’s show we are going back to 1910. These were the origins of the formation of the Federal Reserve during a secretive meeting on Jekyll Island off the coast of Georgia.  Leading up to the fateful meetings that took place over nine days, there had been a series of runs on banks and financial panics in 1873, 1884, 1893 and 1907. These banking panics over the preceding decades had caused the outright failure of 1748 banks. The Federal Reserve Act of 1913 was a direct outcome of this clandestine meeting on Jekyll Island. The Federal Reserve was created to protect the banking system. It is owned by the member banks, not the US government. The Federal Reserve Banks that make up the Fed are not banks either in the traditional sense. I have been thinking, long and hard about whether the Federal Reserve has been mistaken in their interest-rate policy. After all, it is a bold statement for some Podcaster located in Canada to declare in unequivocal terms that the Federal Reserve with its hundreds of PhD‘s is utterly and completely incompetent.  All it takes is a few minutes of the most basic Internet research to realize that the banking system in the United States is backed into a corner from which it is virtually impossible to see away out. That is, unless the Federal Reserve makes a choice between raising interest rates to fight inflation or lowering interest rates to save the banking system. I I am completely convinced that this is the choice facing the Federal Reserve.  ------------ Host: Victor Menasce email: [email protected]

On today’s show we’re asking about how crime and lawlessness is bad for business, bad for rent, and bad for real estate investment.  -------------- Host: Victor Menasce email: [email protected]

Switzerland is known for playing a central role in the global financial system. The nation’s stance of neutrality has earned it a position of trust in the financial system and the monetary system.  It’s no surprise that the Bank of International Settlements is based in Basel Switzerland.  Established in 1930, the BIS is owned by 63 central banks representing countries from around the world that together account for about 95% of world GDP. Because of the neutral position of this Swiss entity, the BIS is involved in many global initiatives. They host close to 200 meetings a year at their Basel headquarters. Every 8 weeks, the governors of the members central banks all meet at this location. The BIS is working hard to understand the global plumbing for central banks in particular. There are a number of pilot projects aimed at improving the global plumbing for central banks in particular relating to the rollout of central bank digital currencies across the globe. ----------------- Host: Victor Menasce email: [email protected]

Brennen Degner is based in Denver Colorado where he is a principal at DB Capital Management. They invest in multi-family assets in four states through the southwest part of the US. On today's show we are talking about the capital markets and the current market conditions that we are seeing for investors and developers underwriting deals and managing existing portfolios through the life cycle. To connect with Brennen, visit dbcap.com. --------------- Host: Victor Menasce email: [email protected]

David Chan is based in NYC where he specializes in agricultural land investing on a nation wide basis. You can learn more at their website farmtogether.com. David shares some eye opening statistics about agriculture in the United States. This is a truly fascinating conversation. --------------- Host: Victor Menasce email: [email protected]

Today’s question comes from Josh at Virginia Commonwealth University I’m appraising a 504-bed student apartment complex in a tertiary college market in Virginia. The property is unique, and recent comparable sales and reliable market data are scarce. I enjoyed your interview with Will Matheson a couple of weeks ago. I emailed him to discuss my property and get his thoughts on the changing market dynamics. Do you have anyone else in your network who invests in student housing who would talk to me? I appreciate your help. My students at VCU and I continue to benefit from your content. ---------------- Host: Victor Menasce email: [email protected]

On today’s show we’re going to ask a number of “What if” questions. I believe it’s important to stop and think strategically about what is happening in the business world that can materially affect your own business. But before you can think strategically, you need to ask a bunch of “what if” questions.  Over the past decade we have been accustomed to living in a world that has been largely moderate in response. We’ve had a decade of moderation, of broad economic prosperity, of localized problems.  We are so accustomed to calm predictable linear situations, that we can’t wait for things to return to normal.  But what if there is not going to be a return to normal? What if we will experience crisis after crisis after crisis?  --------------- Host: Victor Menasce email: [email protected]

This past week, Marcus & Millichap published a new report on BORDER-PROXIMATE INDUSTRIAL  As we talked about a few weeks ago on the podcast, there is growing demand for local manufacturing, or manufacturing located within the continent of the North America. Global tensions with China and Russia have disrupted trade relationships that were once considered stable.  A group of domestic and international companies are planning, or in the process of, nearshoring operations to North America. This reorganization of global supply chains is increasing cross-border trading, a dynamic that will serve as a tailwind for long-term demand for domestic industrial space. Trading with Mexico and Canada was up 12 percent and 9 percent year-over-year, respectively, in January, while trading with China was down 13 percent. ------------ Host: Victor Menasce email: [email protected]

On today’s show we are looking at human behaviour to try and understand what is happening in the housing market.  It’s normal to associate a falling market with falling transactions, rising inventory, and falling prices. According to the laws of supply and demand, when supply increases and demand falls you will see all three of these classic effects, falling transactions, rising inventory of homes for sale and falling prices But a funny thing has happened on the way to the market.  In numerous markets all across North America we are seeing falling inventory. We saw inventory peak in October and November in many markets. Inventory in Nashville fell by 30% since the fall. Inventory has fallen by 20% in Charlotte NC.  There are plenty of new listings. But they are not sitting on the market. Inventory is still falling.  Is it possible that we are witnessing a seasonal effect? Does inventory fall during the first quarter in most years?  Well no, in fact, we usually see the opposite. Inventory often grows during the winter months.  Homes that are listing are not sitting on the market for months and months. They are moving.  So why is inventory falling? Does it mean that fewer people are moving?  There seems to be plenty of jobs activity. People are still moving for work. Layoffs are up, but the jobs market seems to be absorbing laid off workers at a reasonable rate.  I don’t have comprehensive data to back this up. I have a few localized examples. But it’s enough to form a thesis. The thesis is that people are not selling their homes unless they absolutely have to.   Many people locked in a good interest rate over the past five years. If they sell their home and buy a new one, they will rate lock at a new higher interest rate. They’re better off keeping their home and renting it out.  ---------------- Host: Victor Menasce email: [email protected]

On today’s show we are talking about a spring-time ritual. The operation of the sump pump is linked to spring showers and the spring thaw.  All that water being held in the frozen ground or on the surface lets go all at once it seems and the water table rises quickly. Add a few spring rain storms and all of a sudden you have inches of water in your basement. If you have tenants in a basement apartment, you can be facing the unpleasant task of relocating your tenants into a hotel, emergency repairs, mold remediation, possible insurance claims assuming you even have flood insurance Sump pumps require regular testing. They can go for months without turning on. Seals may get dry and brittle and the pump could fail shortly after.  But the real test comes when there are multiple failures.  ------------- Host: Victor Menasce email: [email protected]

Franco Perez is based in Silicon Valley where he invests in mobile home parks. On today's show we are talking about the mobile home park strategies that Franco prefers in today's market conditions. To connect with Franco and to learn more visit franco.tv or check out his YouTube channel. ---------------- Host: Victor Menasce email: [email protected]

Damion Lupo hails all the way from Birmingham Alabama where he specializes in retirement accounts. But not just any retirement accounts. He specializes in retirement accounts that maintain checkbook control with the beneficiary. On today's show we are talking about the merits of such an approach. To connect with Damion and to learn more, visit eqrp.com ------------- Host: Victor Menasce email: [email protected]

Michael asks: I listened to your podcast about bridge loan default/buying opportunities that would hit the market.  Was this message mostly for big institutional investors or for anyone investing in real estate?  I was wondering how to find these opportunities to be ready for them when they are available. Can you give suggestions on the number one source of these deals?  Are they brokers?  With bankers?  or REITs?  I'm not really sure where to look. ---------------- Host: Victor Menasce email: [email protected]

Today's show was delayed by a widespread power and internet outage in Ottawa as a result of an ice storm. There has been a lot written in recent weeks about the US dollar and the potential loss of the reserve currency status. Rumors of the BRICS nations forming their own crypto currency between their trading block has been making news headlines. I’ve actually held off in publishing a podcast on this topic. Merely repeating what you can read in the WSJ and on Bloomberg would not be adding value. I would need to provide an angle that would bring something new to the dialog. If the US dollar were to lose confidence on a global basis, it would be devastating to the US economy. The result would be a drop in demand for US Treasuries. But since the US government is the largest debtor of all, they will need buyers for those treasuries. In order to attract buyers, they will need to raise the interest rate relative to other offerings in the market. For the last three decades of globalization, the US has exported its inflation. The manufacturer who sells Christmas ornaments to Walmart collects US dollars from Walmart and then takes those dollars to the bank to exchange into Yuan. The bank then turns those dollars to the Chinese central bank who have an excess of dollars. Rather than sit on those dollars, the Chinese central bank used those dollars to purchase other commodities like oil which they need to fuel their economy, or they use the dollars to buy US Treasuries. In so doing, the US successfully exported it’s inflation. ---------- Host: Victor Menasce email: [email protected]

On today’s show we’re going to speak about a question that I received during a live zoom meeting. The question was about whether I thought it was a good idea to raise capital in the US for large scale industrial projects in India. The thesis was that there is a large and growing logistics opportunity in India and that it could be a great opportunity for US investors. While the specifics of the question relate to industrial projects in India, you can substitute your favorite project. It would be beach front homes in Costa Rica, or hotels in Rio de Janeiro. My answer would be largely the same. The Industrial land in India thesis makes sense. But that doesn’t mean that raising money in the US will be easy. In fact, I would contend that it will be quite the opposite. ----------- Host: Victor Menasce email: [email protected]

On today’s show we are taking a look at a new law in the city of Los Angeles that has been recently amended called SB8.  This new rule states that no new development can take place that demolishes housing whether occupied or vacant unless replacement housing is constructed that maintains equivalent affordable and very affordable units and rents those units to low income households. What are the intended consequences, and what are the non-intended consequences of this new rule? ------------- Host: Victor Menasce email: [email protected]

Why is our money supply shrinking so much? Will that precipitate a credit crunch? On today's show we are looking at QT and what is driving it. -------------- Host: Victor Menasce email: [email protected]

Brad Cartier specializes in developing new "missing middle" multi-family apartment buildings in secondary and tertiary markets within a radius of Ottawa Canada. On today's show we are talking about the merits of missing middle investment opportunities. To connect with Brad, you can find him on LinkedIn. Also visit his newletter which can be found on Twitter at https://twitter.com/briefcasere -------------- Host: Victor Menasce email: [email protected]

Dr. Pippa Malmgren is a very well informed economist who has served as a former presidential adviser and a national security advisor to the Joint Chiefs of the US military. She is extremely well connected and offers insights that are not being shared in the mainstream media.  I believe that seeing things as they are happening before they become news is a competitive advantage.  "Signals" by Pippa Malmgren is a thought-provoking and insightful book that explores the power of economic and geopolitical signals in today's interconnected world. In this book, Malmgren offers a unique perspective on the importance of paying attention to the subtle signals that can indicate shifts in the global economy and political landscape. ---------------- Host: Victor Menasce email: [email protected]