We're inviting you to participate in our annual Goals Retreat in mid-November. For the last five remaining tickets, we're offering a 2 for 1 special. You can bring a business partner or spouse for the same price as a single full ticket. To find out more, send an email to [email protected]. ------------- On today's show we are looking at some new research published in Nature Magazine earlier this year. It found that frack water in the Marcellus shale in Pennsylvania had high concentrations of lithium. The original paper can be found here. The research found that the concentrations of lithium in Pennsylvania shale frac water might be able to meet up to 40% of the US domestic demand for lithium. This is a huge and unexpected finding. ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are talking about the aftermath of major weather events.  Many of you know what a flood zone is. That’s a low lying area that is prone to flooding and is not suitable for building.  What you may not know is how an area becomes designated as a flood zone. What happens if you have a property and it gets buried by a few feet of water in a weather event? Precisely who gets to say that your property is a flood zone?  -------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

“Be the Unicorn: 12 Data-Driven Habits that Separate the Best Leaders from the Rest” by William Vanderbloemen is a compelling guide for anyone looking to elevate their leadership skills in today’s fast-paced and ever-evolving business landscape.  The book is the result of collating research in that vast body of experience to identify what sets those high performing leaders apart from the rest of the pack.  Some people think that leaders are born, others are molded.  The good news is that the 12 traits are not just character based. Character can’t be quickly developed. It’s part of the makeup of the human being. Some people have strong character and others just don’t. The 12 differentiators are habits and habits can be taught.  ---------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are taking a look at the inland port.  North America is about to experience a labor disruption of epic proportions. If we look beyond the immediate, there is a lot going on in shipping behind the scenes that most people are largely unaware of.  But first we need to be aware of the impact that the disruption of the ports can have not just on imports that we are accustomed to enjoying. Much of the products we purchase in a retail store enter the US and Canada via shipping container. Most major retailers have been building inventory over the past six months in order to mitigate the risk of a work shutdown on October 1. But on today’s show I’m looking beyond the strike. This is after all a real estate podcast. So we are going to focus on the real estate and logistics of shipping.  Many of you might remember the congestion at the port of Los Angeles and the port of Long Beach in California during the pandemic. The solution to this logistics problem is to move the port to a new location where there is more land available. Now the port of Long beach is not exactly small. It consists of 3200 acres. There are 10 piers and space for up to 80 ships at a time. It’s a huge port, but not large enough.  The new seaport is located miles from the ocean in the state of Utah. There are in fact five locations in the state of Utah that form the inland port. The largest is 16,000 acres.  ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Otis Odell is a principal at HED, a national architecture and design firm where he is the sector leader responsible for multi-family, senior housing, and hospitality to name just a few. On today's show we are talking about some of the trends in new construction and the thesis for building affordable housing. To connect with Otis, visit hed.design. ---------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Anthony Scavo is based in Westchester NY where he runs Basis Industrial, specializing in value-add and development of small bay industrial projects. On today's show we are talking about what Anthony is seeing in the segment of the market. To connect with Anthony, visit basisindustrial.com or email him directly at [email protected] ---------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are talking about two words. These two words are so simple. We hear them in everyday language. But their meaning can have profound financial implications for you on your projects.  The two words are "substantial completion".  The American Institute of Architects defines substantial completion as,”the stage in the progress of the Work when the Work or designated portion thereof is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or utilize the Work for its intended use.” --------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are talking about pharmacies. It used to be the case that pharmacies were considered AAA tenants when it comes to retail. There was an entire industry of land owners who had developed tax sheltered land offerings for investors seeking safe investments that would defer capital gains tax.  On today’s show we are looking at the pressure facing large pharmacy chains and why they are closing locations by the thousands as well as the impact on those communities, the retail landscape. Why are they dying and what will replace them? --------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)  

On today’s show I’m sharing what I’m learning at a conference. This is a small exclusive conference being held in a boutique hotel in Asheville NC. The conference is hosted by a large institutional lender and the attendees are mostly developers and investors in the lenders fund. There are about 80 attendees in the room. It’s a small intimate event where we have the opportunity to truly connect and learn from one another.  ------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are talking about how to secure a construction site. In any construction site there is a trade-off between efficiency and security.  When we are talking about security, there are three main aspects we are most concerned with. The first is for the safety of people who are prone to wandering onto the site outside of construction hours. The second relates to loss of valuable equipment and materials. The third layer is protecting the environment.  ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are addressing a diversity of opinion on how valuation is determined for land in residential subdivisions. We recently had a builder assert that our pricing was too high for residential lots in a subdivision.  At the same time, we have also been successful in developing residential lots and selling them in the marketplace to builders across multiple markets.  When we price our land, we always perform residual land value analysis as part of our due diligence.  We put ourselves into the shoes of the home builder and reverse engineer their cost structure.  So if we are talking about a single family home subdivision, we subtract the builders profit from the retail price, then we subtract the hard cost of construction, the soft costs like permit fees and insurance, interest reserves, the builders general conditions. What’s left over is the price that the builder can pay for the land and still have a profitable business.  ------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Amy Johnson is based in Salt Lake City where she is a partner at Y Street Capital. On today's show we're talking about how she went from high school teacher to developer. To connect with Amy, visit ystreetcapital.com ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Alec Denney is based in Denver Colorado, but is a global nomad at heart. Through his journeys with partner Krista Fettke, they have built an international business focused in helping US citizens buy properties in Europe, Mexico, and Panama. In some cases the golden visa programs can provide a pathway to residency or citizenship for those seeking a second home. To connect with Alec, visit gatewayinvestors.com or reach out to him directly at [email protected]. -------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Today’s question comes from Ramon who writes: "Many thanks once again for providing such great information and insightful perspectives on so many important topics.  Writing to ask about something I heard from one source, but cant find much information to support (or refute). We all know insurance premiums have been increasing across the board. The common narrative is that insurance claim payouts for various events (eg, fires, hurricanes, etc) have increased substantially as more of those events have occurred in recent years. While that may be one of the reasons, I heard some information that suggested that a bigger cause is insurance company losses (or anticipated losses) in their CRE portfolios (eg, increase in loan defaults, office building vacancies, etc). Wondering if you have heard anything about this. " -------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today's show we're dissecting yesterday's Fed rate cut announcement and what it means for us as real estate investors. The most meaningful part of the press conference was during the Q&A period when Chair Powell said that members of the FOMC shared their view in an informal poll. 17 out of 19 members said that they thought three more rate cuts would be appropriate in the next 12 months and that 10 out of 19 said that four more rate cuts would be appropriate in the next 12 months.Of course this informal poll of the members doesn’t identify which 12 members are the actual voting members at the time. Nor is it a commitment on a position in the future. Chair Powell was careful to say that they are making data driven decisions on a meeting by meeting basis. There is an interesting paper published by the Fed which links rate announcements to bank rates for certificates of deposit. Here is the link to the paper https://www.federalreserve.gov/econres/feds/files/2014108r1pap.pdf The announcement is extremely helpful when it comes to investor psychology. It’s much more credible to have the Chair of the Federal Reserve  Saying that rates are falling than say the host of the Real Estate Espresso podcast predicting a fall in rates. None of us have a crystal ball, not even Chair Powell. But if Chair Powell is saying that Fed officials are predicting 3-4 more rate cuts in the next 12 months, we can include that in our investor communications. That doesn’t mean our borrowing rates will fall in reality. But the direction is at least somewhat clear.  ------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are talking about shingle chasers. These are the door to door sales teams that point out a problem on your roof and try to sell you on a new roof with zero out of pocket cost to you.  The scam works like this: Contractors knock on doors offering to inspect homeowners’ roofs for storm damage. They say they can help get a roof replacement covered by insurance, and they persuade the homeowners to sign away their rights to file the claims themselves. At that point the homeowner loses control over the claim and the contractor can sue the insurance company. But it's still the homeowner's insurance. The resulting settlement might be even higher than the original claim. But the first claim was fraudulent. --------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   I

On today’s show we are taking a look at an impending risk. We have talked about this on the show in recent weeks.  There have been several news reports in the mainstream media about an impending labour strike by US Longshoremen on October 1. There are reports in Reuters, Bloomberg, CNBC and others.  The international longshoremen’s association held a two day meeting on September 4-5 with their wage scale delegates. At the end of two days, the delegates voted last week unanimously to strike on October 1 if a new contract is not negotiated by Sept 30. The longshoremen are looking for a 77% increase in their wages over the life of the contract. They are also looking for assurances that jobs won’t be lost to automation. By comparison, their West coast counterparts received a 32% wage increase in their most recent contract negotiations.  Nearly 10 days later and no discussions have taken place between the ports and the union.  -------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are talking about a new paper published last Friday by Brent Johnson and  Michael Peregrine of Santiago Capital. Brent Johnson is famous for his dollar milkshake theory. This 44 page article is a deep dive into the Japanese carry trade. Many of you might remember a banking crisis that erupted in Japan last month as a result of the implosion of widespread carry trade activity. While the Yen is likely to rise in the short term when the carry trade truly blows up, it is probably going to fall after that. As I said, the BOJ can protect the bond market or the currency, but not both.  So why do we care about this? If Japan dumps a trillion dollars worth of US Treasuries in a short time period, we could see the supply of US Treasuries exceed demand. That means a sharp and unexpected rise in the yield for US Treasuries which will impact the cost of borrowing for real estate investors. Just because the Fed is in a lowering cycle for the Fed Funds rate, doesn’t mean that the cost of borrowing for real estate investors will follow suit.  -------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Kevin Amolsch is a principal at Pine Financial, based in Denver Colorado. His firm lends locally in Colorado, Minnesota, Wisconsin and DC. On today's show we are talking about the criteria for lending and what makes sense for their business in the current environment. To connect with Kevin, visit https://pinefinancialgroup.com/ ------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are talking about how to find good data.  Last night I hosted an event and invited the Keynote Speaker from Costar to present to our audience. It was a great presentation and the speaker had lots of relevant statistics that would be of interest to anyone in my local market. There were numbers on multi-family apartments, on office, industrial.  During the informal part of the evening we got into a debate about the best sources of data. Every company that specializes in analytics seems to have their own special sauce for how they gather and validate their data.  Some property management companies like Yardi and Realpage also have data analytics products. Both companies are leaders in property management and they can rely on the vast quantity of data that is hosted in their system to provide an accurate picture of the market, but only for the properties they have viability of.  Companies like Costar and ALN use a more old school approach. They have legions of analysts who will monitor the market and pick up the phone and call property owners when a transaction takes place on a commercial property. They will call the property managers at a property and interview them. It’s hard to know whether the property managers are being fully honest in the interview process.  One of the reasons why the reports differ has to do with the methodology.  ---------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

 On today’s show, we are looking at what global commodities prices are telling us very clearly about the global economy. You can manipulate inflation numbers. You can adjust GDP numbers. You can even fudge the unemployment rate.  But what thing we know beyond a shadow of a doubt is that when demand exceeds supply prices rise, and when supply exceeds demand, prices fall. When we think of pricing, some prices only fluctuate in one direction. Salaries go up and they rarely go down.  But for commodities, prices have no real ceiling, nor any real floor. So looking at commodity prices can tell you more about the general economy on a global basis than any report from any one government.  ------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are talking about storm preparations. Hurricane Francine is making landfall along the Gulf coast as we speak. Our team owns and operates multiples properties along the Gulf coast. When a tropical system starts to form in the Gulf of Mexico we take notice and pay attention to the storm track several times a day.  Preparation involves communicating with residents to be ready for any eventuality. That means the possibility of an evacuation. If an evacuation is imminent, what will be the route? Will you be heading to safety or into the path of the storm?  On today's show we are sharing our experience on how best to prepare. ------------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

We’ve all heard the rhetoric. The US has the best health care in the world. That’s true for some who can afford to pay for it. But on average, that’s not true.  On today’s show we are going to look at a report published by the Commonwealth Fund a little over a year ago. It was also reported in the American Journal of Managed Care earlier this year.  Now you might wonder why we would focus on this on a real estate podcast. Well, it’s because anywhere there are problems, there is a solution waiting to be implemented. Often, any large scale solution has a real estate component to it.  According to the Commonwealth Fund report, United States experiences the worst health outcomes overall of any high-income nation. ------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today's show we are talking about a globally synchronized economic slowdown.  Canada reported its employment numbers late last week and the Canadian unemployment rate rose to 6.6%, the highest level in 7 years. We reported last week that the  We got the latest employment report for the US on Friday. The BLS reported numbers for the month of August. But at the same time that they reported August, they revised the numbers for June and July.  The change in total nonfarm payroll employment for June was revised down by 61,000, from +179,000 to +118,000, and the change for July was revised down by 25,000, from +114,000 to +89,000. With these revisions, employment in June and July combined is 86,000 lower than previously reported. The bureau also reported that the unemployment rate fell to 4.2% in August from 4.3% in July. This reversal in the unemployment rate could affect the size of interest rate cut that is expected to be announced on September 18 when the Federal Open Market Committee meet on the 17th and 18th of this month.  ----------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Tony Lopes is based in New Hampshire, but invests in the sunbelt of the US. On today's show we are talking about the macro trends that will affect demand for rental housing in the next decade. To connect with Tony, email him directly at [email protected] or visit his website at https://dirtybootscapital.com/ -------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Chris Lento is based in Boston, and his firm is investing in multi-family assets in the Southeast. On today's show we are looking at his assessment of the market conditions. You can connect with Chris at his firm EM Capital Group at emcapitalgroup.com --------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are talking about invasive species of plants that can play a role in your due diligence when purchasing property.  The first one I’m going to cover today is Wild Parsnip. Wild Parsnip is an invasive plant native to Europe and Asia.  Like giant hogweed and other members of the carrot family, it produces sap containing chemicals that can cause human skin to react to sunlight, resulting in intense burns, rashes or blisters. The second invasive species is one that has also been around for a long time. But I was only introduced to it this past weekend. My wife and I were traveling on the Labor Day  weekend on Long Island and it was everywhere. The banks of most rivers and canals were covered in it. The plant is Japanese Knotweed. Its stalks can grow up to 3 feet in a week. It is invasive and it is relentless. Both plants can take years to eradicate from your property. **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are seeing another central bank drop their benchmark lending rate. The Bank of Canada dropped its benchmark interest rate for the third time in a row, leaving the rate at 4.25%. This is in stark contrast to the US Fed Funds rate which remains at 5.25%-5.5%. Each country seems to behave like they are economic islands. But we have a globally interconnected economy and no country is an island unto itself.  We are not insulated from what is happening in Europe, or in China. We have a globally synchronized economic cycle that is being influenced by factors that are well outside the control of central bankers. Nevertheless ew have central bankers acting as if they can pull one lever with the left hand and slow down the economy, and gently pull another monetary policy lever with the right hand and accelerate the economy.  There is no question that we are seeing sustained economic slowdown in the US, in Europe, in Canada.  This is one of those good news bad news stories. Central bankers don’t aggressively lower rates unless they see a problem in the economy. Lowering rates is good news for borrowers, but it is really a reflection of bad news, This time it is being coupled with a good news narrative. We should be wary of the story that says this time is different.  ----------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are taking a closer look at a new and emerging trend in building construction. This is a newer segment which fills a gap in the definition of building types. At one end of the spectrum for senior housing you have a simple market rate apartment which offers no services and will usually include basic amenities. As adults age, they might progress through various offerings starting with independent living, assisted living, memory care and then skilled nursing. Each of these product offerings are distinct in the market and have pretty well accepted definitions of which services are included at each level of care.  There is a new report out from the National Investment Center for senior Housing and Care which focuses on the Active Adult Segment. We are very interested in this segment because it fills a sizeable gap between the market rate apartment and the independent living product.  -------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On Thursday evening I passed by New York’s leaning tower. We’ve all heard of the Leaning Tower of Pisa. The modern day equivalent of that is the Millennium Tower in San Francisco. That building is leaning nearly 60cm, a little over 2 feet. Several attempts have been made to stabilize the Millennium Tower by underpinning the foundation and have actually destabilized the building even further.  New York’s leaning tower is right on the East River and I was speaking on a yacht full of investors while taking a tour of NY Harbor. I got a close up first hand view of the building. We passed my so many iconic landmarks from the water including Rikers Island, Ellis Island, Lady Liberty, the Battery, the new Freedom Tower. I was even able to get a photograph of one of my mother’s buildings from the water. She was an architect in Manhattan at one of New York’s premiere architecture firms.  The building in question has been fully erected, all 60 stories of poured concrete. It's all happening over at One Seaport or 161 Maiden Lane: 60 storeys of prime real estate on Manhattan’s East River waterfront. At first glance it may look like any other construction project downtown. But look a lot closer, and you’ll find it’s actually leaning 8 centimetres, or three inches, to the north. The North side of the building consists of a sheer wall made of solid concrete. It’s an incredibly narrow building. From the water it seems pencil thin.  Manhattan island is ideal for building tall buildings. Most of it sits on solid bedrock which is made mostly of slate. But a building which is directly on the East River will have brackish salt water do contend with at the foundation level which will make the soil underneath the tower more fluid.  --------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

This question also comes from Chris who is asking a follow-on question from last week’s question on apartment turnover. Last week Chris was asking about how long to budget for making a unit rent ready. So here is his question. “If the average  apartment turn requiring cleaning and “light repair” is around $2,000 shouldn’t the tenant security deposit collected at lease signing be no less than this?  Or am I thinking about this wrong and one has nothing to do with the other?  I’m simply approaching this with a mindset that you want to try and avoid being in the red for apartment turns coming out out of your pocket.” ---------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Nate Silver's The Signal and the Noise: Why So Many Predictions Fail—But Some Don’t is a fascinating exploration of the art and science of prediction. In a world flooded with data and overwhelmed by uncertainty, Silver’s work sheds light on why so many forecasts go wrong and how we can improve our ability to make accurate predictions. -------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Mark Livingston is based in Houston Texas. On today's show we are talking about storage in Houston and a collaboration between Mark and our development firm Y Street Capital. We will be hosting a webinar this coming Wednesday at 6PM CDT, 7PM EDT to share more details about this upcoming project. To register for the webinar, visit https://event.webinarjam.com/register/34/ooq9xuwg ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Today’s episode is another AMA episode. Today’s question comes from Chris who asks: What is an acceptable apartment-turn timeframe (how many days should it take to fix and be ready for next tenant) and how much should those make-ready costs look like between tenants? ----------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

At Y Street Capital we bring in young professionals from time to time to work as interns on a part time basis to learn more about real estate investing and development. These unpaid internship positions foster a win-win relationship that can often accelerate the learning for a young adult. At Y Street Capital we are looking for a research assistant to work for a few hours a week on special projects. Some of that work will also include the background research that could ultimately result in episodes of the podcast. If you have a few hours a week to spare and are a candidate, or perhaps you have a young adult in your life with a high level of curiosity. Send an email to [email protected] and put the word research in the subject line.  -------------- On today’s show we are looking at how to create leasing incentives that preserve the value of your building.  Most building valuations are based on the income method which involves taking the gross rent, minus the operating expenses to get the net operating income. You then divide that amount by the market capitalization rate to get the value.  Let’s say that you want to offer a bunch of incentives for new tenants to move into your building. You could offer a discount on rent which would result in a reduction in rent and therefore a reduction in the value of your building. If you offer the tenant something that costs you money to provide, then your expenses increase and you have the same effect of lowering the value of your building.  In a brand new building you will want to pre-lease as much of the building as possible. Many developers I know have 30% pre-leasing as a target to achieve by the time the building is ready to open. But in order to achieve that, tenants need to plan on moving when the building is completed, not necessarily in 30 days or 60 days when it might be otherwise convenient for them. It’s a longer sales cycle.  From an accounting standpoint, investments in the building assets are associate with the balance sheet and not the income statement. For example the materials that go into the building like paint and gypsum board and bricks are all part of the capital improvements. A capital investment is amortized over the depreciated life of the asset. Some startup costs can be capitalized. For example if you have marketing expenses that are associated with the initial lease-up of the building, it would be legitimate to capitalize those costs instead of expensing them since they are a one-time cost and not a recurring cost.  So let’s imagine that you offer a free large format television as part of a move-in special. The cost of that TV can be capitalized. While it appears as an incentive to the tenant, it doesn’t get treated as an operating expense to the business and therefore the cost of the TV doesn’t reduce the value of the building when looking at multiples of net income.  ----------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are talking about air rights.  Air rights refer to the legal ability to control, lease, or sell the space above a property. Traditionally, property rights included not only the land and any buildings on it but also the air above and the ground below. The concept of air rights date back centuries and are ingrained in common law. The biggest change to air rights came with commercial aviation which put the ownership of the atomosphere in the public domain while preserving private ownership of the air immediately above a property for the enjoyment of the property owner. Exactly where private property rights transition to the public domain varies by location and by jurisdiction. -------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

For the past several months I’ve been predicting that the Fed will need to pivot on their interest rate policy.  As recently as Thursday of last week I predicted that the Fed would have no choice but to drop interest rates based on labor market weakness. I also predicted that we would hear some meaningful update at the Jackson Hole conference in Chair Powell’s remarks on Friday morning.  I don’t have a crystal ball, although I expect to some that it might seem like I do. On Friday morning Chair Powell did indeed announce a major change in monetary policy. There were a few things that Chair Powell said in his remarks that were significant.  He declared a bit of a victory lap on the inflation fight, even though the disinflationary progress has been gradual over the past year.  The real story behind the Fed pivot is unemployment is rising sharply.  --------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Hubert Johnson is a tax lawyer with Guardian Tax Law based in Tucson Arizona. On today's show we are talking about resolving problems with properties that have tax liens filed against them. You can reach out to Hubert at 520-526-9850 or visit their website at guardiantaxlaw.com -------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

George Ross was executive vice president in the Trump Organization for many years. On today's show George shares his perspective on the current election. ---------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are talking oil and gas investing. I recently had an investor ask about investing in oil and gas. So on today’s show I’m going to tell you the story of my foray into the world of drilling oil wells in the back woods of Kentucky. ---------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

If you’re been listening to this show for a while, then you will know that I’ve been saying consistently that the jobs data being reported by the Bureau of Labor and Statistics in the United States cannot be correct.  Now think about it, here is a real estate developer who happens to live in Canada stating pretty boldly that the US government is reporting data incorrectly. How crazy is that.  Well some might have been surprised that the BLS issued a revision to the past year’s numbers and disclosed that the number of new jobs reported was actually 818,000 lower that what had been previously reported.  ----------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

I'd like to invite you to be my guest for a sunset cruise in NYC on August 29 from 4PM to 8PM. We will depart from the East River and tour the Hudson River with stunning views of the NY skyline. There will be great conversation, fine cuisine, and a few presentations on alternative investments. If you're interested in learning more, send an email to [email protected] and put "Hudson" in the subject line. ------------ On today’s show we are looking at a new rental market report published by Zillow for the month of July.  A cooler rental market is prompting more property managers to offer concessions in a bid to attract new tenants. Though rent growth is only slightly softer than last year, far more property managers are offering short-term perks. On today's show we are going to try and make sense out of what this report could be telling us. ----------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

I'd like to invite you to be my guest on board a tour of the Hudson River in NYC on Aug 29 from 4-8PM. We will depart from the East River in Lower Manhattan. This exclusive event is for accredited investors only. There will be great conversation, fine cuisine, an incredible view of the NY skyline and a few presentations on alternative investments. To learn more send an email to [email protected] and put the word "Hudson" in the subject line. ------------- On today's show we are talking about the 2024 revision of the IECC energy code which was just published last week. The National Association of Home Builders published a summary of the changes in this six page document. --------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Today’s show is another in our beginner series. On today’s show we are talking about what makes a site suitable for development.  A location might seem perfect in terms of proximity to amenities, demand for housing in the area, good schools,  When I look at a site I’m considering the density that would be desirable in that location and the density allowed under the zoning. Some people look at density allowed in the zoning and think that’s the only determining factor.  This is not the whole story. If you are going to achieve a particular density, then all of the requirement to achieve that density need to be met.  --------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Nic DeAngelo is based in Southern California where he invests in multiple asset classes. On today's show we are focused on his favorite segment - Industrial. To connect with Nic and to get access to their studies, visit https://saintinvestment.com/resources/ ------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Brandon Burns has completed more than 4000 Section 1031 transactions so far in his career. On today's show we are talking about some of the pitfalls associated with the 1031 as well as techniques to build additional safety into 1031 transactions. To connect with Brandon you can call the office directly at 858-331-0131 or email him at [email protected] --------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystr

On today’s show we are looking at the new NAR rules that take effect on August 17 as a result of the class action lawsuit affecting real estate brokerages in the US.  ------------ **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [[email protected]](mailto:[email protected])  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show, we are taking a look at the latest consumer price index reading for the month of July in the United States. July was the fourth straight month of declines in the consumer price index with a month over month increase of 0.2% an annual rate of 2.9%. As real estate investors, we pay attention to this because of the influence it might have on setting interest-rate policy. The most recent federal reserve announcement which held the short term fed funds rate steady, was looking for continued progress in the fight against inflation in order to gain the necessary confidence to lower interest rates. Many of the analysts I follow her predicting a September rate cut of something in the range of half a percentage point. However, for real estate investors, our interest rate is determined by the yield on the US tenure treasury and for investors it is indexed to either the five year or 10 year Canadian mortgage bond. So who sets the yield on the 10 year treasury? It’s price is determined by the laws of supply demand for those bonds.