I’d like to invite you to a webinar that we are holding this coming Tuesday. This is an investment opportunity that is open to accredited investors only for a new apartment project located in Ottawa Canada. The link to register for the webinar is HERE -------------- Our guest today is Alessandro Chesser from the San Francisco Bay area. His company is removing the friction associated with protecting property in living trusts. This is a fascinating innovation in the industry. To connect and to learn more, visit https://www.getdynasty.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)  

Dr. Ryan Smolarz is a surgeon based in the US Virgin Islands where he specializes in storage assets across the US. On today's show we are talking about managing the emotional side of investing. To connect with Ryan, visit ⁠Stor Partners⁠ or text them directly at 602-641-4109. --------------- Our development firm, Y Street Capital is hosting a webinar this coming Tuesday June 25 to discuss a 134 unit mid-rise apartment development project. To register for the webinar, use the following webinar link. ---------------- **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 going to look at something that has been making financial headlines all over the world over the past two days. The purpose of discussing it on this show is that even the major financial media like the Wall Street Journal and Bloomberg have been misreporting the story.  The headline is that another Bank, this time a Japanese bank is running into trouble. The assumption is that the problem has to do with the inversion of the yield curve and investment in long term treasuries is the reason for the bank’s problems. Some of the problems which cause the failure of Silicon Valley Bank, First Republic Bank and Signature Bank last year stemmed from the need to raise additional cash, and in so doing, those banks were forced to sell US Treasuries at a loss. If those banks had the luxury of holding those bonds to maturity, then there would have been no losses.  What we will discuss today is that the symptoms look similar, but that the root cause of the actual problem is quite 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 talking about investing fundamentals. What is an investment worth? If you watch the TV show Shark Tank you will see the contestant say that they are seeking $X in exchange for y% of the company. The sharks then do some quick math to determine the enterprise value and then compare the income as a percentage of the valuation. They are trying to get a sense of the current value of the company based on multiples of net income. That’s how companies should be valued.  We now have a stock market index that is dominated by five companies which are Nvidia, Microsoft, Apple, Meta and Amazon.  All of this is being driven by the anticipation of the impact that AI will have on the industry.  We need to ask ourselves questions as to whether what is happening in the stock market makes sense or not.  ----------- **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 class of apartment living that is starting to make headway in several markets. We too are exploring this product offering for some of our new construction projects.  When we talk about the continuum of care for aging adults there are several new product types being defined and accepted in the market.  It used to be the case that the only type of senior housing was a nursing home, which today we call skilled nursing. Some simply called them old folks homes.  Since then, there are more specialized forms of care like memory care, Parkinson’s care, independent living and assisted living.  Well there is one more category of housing which is starting to establish market share in many communities. Still on a national level, the penetration of this product type is still tiny compared with other housing types.  This is what we internally call a concierge apartment, or what many in the industry call an active lifestyle apartment.  -------------- **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 right way to build a paper airplane.  When I first graduated university and was a new hire at Bell Northern Research in the microprocessor development team, I attended a company training course that was an entire week long.  One of our first assignments during that week was a design exercise. The assignment was to design a paper airplane. We were given two sheets of paper. One sheet of paper was to build the actual prototype of our amazing paper airplane. The second sheet of paper was to write the manufacturing instructions for someone else to build the airplane. The paper airplane had to fly the width of the conference room which was not that large.  ----------------- **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 exploring why so many cities have recently embraced the notion of intensification. Through the last several decades cities have continued their relentless sprawl out into the suburbs. You have some extremely low density cities that have no natural boundaries and continue to sprawl. Dallas may only stop gobbling up land when it reaches the Oklahoma border. Phoenix may eventually become one with Flagstaff. You can literally drive for hours in Phoenix and the surrounding suburbs and I swear you would think that you have seen this street before. The houses look the same and the strip malls look the same, but you have not made a single turn. Let’s look at the budget for development of single family homes. We’re going to zero in on the infrastructure for services for a single family home. These days the cost of building a fully serviced road with 7 utilities is averaging about $1200 per linear foot of road. If you have to install deep utilities for storm water management or if you have to blast through bedrock, or maybe you need a sewer lift station then those costs can multiply. If you compare the cost of servicing 200 homes In a subdivision with a 200 unit high rise apartment building, the apartment building is going to cost a lot less in the short term and in the long term. --------------- **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)  

Jon Weiskopf is based in Sturgeon Bay Wisconsin. His specialty is impact investing. On today's show we are discussing what that means and some of the constraints that are implicit in impact investing. --------------- **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)  

Brian Davis is based in Lima Peru and is in his 9th year of living the expat lifestyle as an investor. On today's show we are talking about what it's like working remotely and seeing the world at the same time. To connect or to learn more Brian can be reached at SparkRental.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 our consulting division advised a client which had the effect of turning a good project into a great project, while avoiding a zoning variance at the same time.  --------------- **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 Paul who writes: I often hear about working on the business versus working in the business. What does that mean to you, and can you give me some examples of what that looks like? ------------- **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 product that we are increasingly incorporating into our new development projects. When we undertake a development project we are starting with raw land. It’s a blank canvas. It could be whatever the mind can imagine when completed.  The traditional approach has been to build mid-rise apartment complexes. But thee apartments are increasingly saturating the market. They are among the highest density in the market and are generally constrained by parking.  Then you find the build to rent communities that are cropping up all over the country. This sounds like a new concept. But they existed back in the late 1960’s and early 1970’s.  But since these communities have been built in so long, what’s old is new again. The beauty of a build to rent community is that people prefer to live in a low density environment such as detached single family homes or townhouses.  Back in the 1960’s, building standards were not as high as they are today. The sound isolation between townhouses and apartments was not as good as it is today.  Our solution to this is a particular type of townhouse that we call Live Work Play.  ------------- **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 positioning of a real estate investor in the marketplace.  Let me be clear, on today’s show I may offend a few listeners. But I’m not here to offend. I’m here to reflect back what many investors marketing is saying. There is nothing wrong with being new. Everyone started at the beginning. But be aware that wherever you are in your journey, you are sending a message. ------------ **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 the employment statistics that were released last Friday. The headline in the Wall Street Journal read “Hiring and Wages are Up, Reinforcing the Economy’s Resilience”. The subtitle to the article then reads: “The U.S. posted surprisingly large gains in both jobs and pay, even though the unemployment rate ticked up to 4%” CNBC said “U.S. adds a much-better-than-expected 272,000 jobs in May, but unemployment rate edges up to 4%.” Each month there are two surveys conducted. The establishment survey queries employers about how many people they have hired in the past month. The household survey queries families about their income and employment situation. The bottom line of all the articles I read was that the establishment survey being this strong would signal to the Fed that the jobs market is still very robust and that they will have no choice but to maintain rates higher for longer. Frankly this is a narrative that is supported by half truths at best. The economists at the Fed know how to read the household survey and draw a reasonable conclusion.  ------------- Stay connected and discover more about my work in real estate and by visiting and following me on various platforms:**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)  

Josh Pardue is based in Tampa Florida. Josh is a repeat guest on the show. But this was actually the first episode recorded and accidentally published out of order. Josh was also a guest on May 11. On today's show we are talking about how to underwrite the risk of single tenant commercial properties. To connect with Josh, he is available on most social media including Facebook. https://www.facebook.com/joshua.pardue ------------- Host: Victor Menasce email: [email protected]

Michele Fischbein is based in southern California where she works as a tax and asset protection attorney with the firm Tresp Day. On today's show we are talking about asset protection structures that were pioneered in part by some of the partners in her firm. A few weeks ago we also hosted a webinar with Michele which included a deeper dive into the principles we discuss on today's show. The link to the webinar recording is HERE in the show notes. To learn more and to connect with Michele, visit trespday.com or email her directly at [email protected] ------------- Host: Victor Menasce email: [email protected]

Later today we will be hosting a Facebook Live and a LinkedIn Live session with our Partner Amy Johnson. Join us live to ask Amy Johnson how she gets deals done. Around the United States, Amy owns self-storage, multifamily, and develops land as a partner with Y Street Capital. She has a 15-person brokerage, has developed 500 acres of land and 500,000 square feet of self-storage, and renovated several hundred apartment units over her time as an investor. Bring your questions and join us live Friday, June 7 at 3 PM Mountain Time, 5PM EDT. https://www.linkedin.com/events/deal-making-askamyjohnsonanythi7199448061411041281/theater/ https://www.facebook.com/share/TDH2xPXf9wckjdSo/ ------------ On today's show we are taking a look at a land development query that came from a potential consulting client. Many of these projects are simply not possible. But then there are a few. Stay connected and discover more about my work in real estate and by visiting and following me on various platforms: Real Estate Espresso Podcast: - 🎧 Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) - 🌐 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 coming Friday we will be hosting a FaceBook Live and a LinkedIn Live session with our Partner Amy Johnson. Join us live to ask Amy Johnson how she gets deals done. Around the United States, Amy owns self-storage, multifamily, and develops land as a partner with Y Street Capital. She has a 15-person brokerage, has developed 500 acres of land and 500,000 square feet of self-storage, and renovated several hundred apartment units over her time as an investor.Bring your questions and join us live Friday, June 7 at 3 PM Mountain Time, 5PM EDT. https://www.linkedin.com/events/deal-making-askamyjohnsonanythi7199448061411041281/theater/ https://www.facebook.com/share/TDH2xPXf9wckjdSo/ -------------- On today's show we are talking about interest rates. Canada dropped its key lending rate 0.25% on Wednesday and the European Central Bank cut its lending rate 0.25% on Thursday. Sweden cut its rate a month ago and Switzerland cut its rate in March. What does this mean for Fed policy? -------------- Host: Victor Menasce email: [email protected]

This coming Friday we will be hosting a FaceBook Live and a LinkedIn Live session with our Partner Amy Johnson. Join us live to ask Amy Johnson how she gets deals done. Around the United States, Amy owns self-storage, multifamily, and develops land as a partner with Y Street Capital. She has a 15-person brokerage, has developed 500 acres of land and 500,000 square feet of self-storage, and renovated several hundred apartment units over her time as an investor.Bring your questions and join us live Friday, June 7 at 3 PM Mountain Time, 5PM EDT. https://www.linkedin.com/events/deal-making-askamyjohnsonanythi7199448061411041281/theater/ https://www.facebook.com/share/TDH2xPXf9wckjdSo/ ----------- On today’s show we are taking a twist on a familiar saying. You’ve no doubt heard or read the disclaimer sentence that says past performance is not indicative of future performance. You will see that in the fine print of virtually every mutual fund, exchange traded fund, publicly traded stock and even private investment offering.  That’s kind of an obvious statement. None of us have a crystal ball and we can’t predict the future.  But on today’s show we are saying that "Past performance is not indicative of past performance."

On today’s show we are talking about a question that came to me on a phone call yesterday morning. The person asking the question was seeking to help another investor who has run into financial difficulty.  The question was whether a standby letter of credit could be used to help a real estate investment firm that was seeking to refinance their bridge debt into a lower interest rate permanent financing.  Given that the person asking the question wasn’t clear, I thought it would be helpful to share the question and the answer live on the show.  --------------- Host: Victor Menasce email: [email protected]

On today’s show we are talking about a project of ours that recently completed the zoning approval process.  This is a 20 acre site in a suburb of Salt Lake City called Brigham City. The property itself is situated next to one of the two highway interchanges from Interstate 15 into Brigham City. Immediately across the street is a new Walmart Super Center.  The total site plan consists of the Marriott Town Place Suites hotel, 120 apartments, 50 townhomes, and several buildings of flex multi tenant industrial. All of these products have to have the requisite amount of parking. It is the surface parking that ultimately determines the density that can be achieved. At one point in the design process we had proposed a larger number of apartments. But this has to be scaled back to meet the parking ratios required for a viable project.  Throughout the process, the economic outlook in the area accelerated. One of the main contributors is the newly announced Inland port.  It took a few months longer than we expected, but we have an amazing project that we expect to create a lot of value for our investors. To be clear, we are not soliciting for investment and just sharing our story about this project. This project was funded over a year ago. 

Mauricio Rauld is the founder of the Premier Law Group and specializes in securities law. On today's show we are talking about the forecast changes to securities regulations in the US. Mauricio's team performs all of our US securities work at Y Street Capital. He also wrote a new book called "Legal Strategies for Everyone" and you can connect with him through his website at https://legalstrategiesforeveryone.com/ He also has hundreds of education videos on his youtube channel. -------------- Host: Victor Menasce email: [email protected]

Our book this month is called Day Trading Attention: How to actually build brand and sales in the new social media world by Gary Vaynerchuck, the CEO of Vayner Media. Gary is well known as a keynote speaker in the world of marketing. His YouTube and social media following is massive.  Gary’s thesis is that in order for your marketing message to be received, you need to be using channels that are in your customers field of view. If your customer is not looking in the direction of your message, then there is no way for your message to be received. All of the various channels have different costs associated with them. Some are going to be overpriced and may still reach the target audience.  But then there are avenues that are underpriced. It used to be that business was local and that your zip code mattered.  But today what matters more is your browser history as a reflection of what interests you.  The world of social media was centred around who you connected with and today social media algorithms are increasingly giving weight to what interests you.

Today’s question comes from Dan who asks.  I’m currently evaluating an investment in a multi-family apartment project. I’ve heard so many horror stories lately about investments going bad in the past year that I’m struggling to figure out how to perform due diligence. If you were looking to make a passive investment in someone else’s deal, how would you conduct the due diligence?  ---------- Host: Victor Menasce email: [email protected]

You have probably seen the pitch on social media. I’m approached almost daily on LinkedIn. These companies and individuals are frequently offering any amount of funding from $500,000 up to $500M. Some are offering to partner with you on projects. Some are offering both debt and equity.  Offers of funding can sound enticing to those who are seeking additional capital to cover a shortfall in their business.  As always you need to do your due diligence on any kind of funding source. You need to know that they can deliver what they are promising.  Think about the potential risk that exists for any borrower who provides tremendous volumes of data to a lender including details about your real estate holdings, tax returns, a complete statement of assets and liabilities.  What if that person who is posing as a lender is not really a lender at all, but someone who is seeking to steal your identity? Have you armed them with the necessary information to make identity theft incredibly easy? Sometimes an identity theft can occur with just one or two critical pieces of information. But in this case you have given them everything.  -------- Host: Victor Menasce email: [email protected]

As many of you know, in addition to being the host of the Real Estate Espresso Podcast, by day I’m the senior partner at Y Street Capital. Our firm is active across 9 states in the US and also in Canada where I reside.  It sounds strange to say this, but Canada has a much more acute housing crisis than the US. Our population has grown through immigration much faster than the US. Many Canadian cities are facing a crisis of availability at any price and it’s no longer even a question of affordability.  Unless governments are going to take over housing and socialize housing like you might in a communist country, the only free market way to address the housing crisis is create the incentives for additional supply to enter the market.  Just like in the US, Canadian cities get their power from the next level of government. US cities get their power from the state in which they reside and Canadian cities get their power from the province in which they reside.  In addition to the steps taken over the past couple of years at the provincial level, the Ontario government has a new bill called bill 185 which is aimed at  Cutting Red Tape to Build More Homes. One of the obstacles to creating more supply is the red tape and bureaucracy that exists in the planning system.  Most of our listening audience is outside of Canada. In fact 81% of our listeners are in the US. I’m going over this in some detail because I believe you can influence the political process and create improvements in the development process that will benefit developers and ultimately the people who are going to live in those newly created homes.  ------------- Host: Victor Menasce email: [email protected]

Today’s question comes from Daniel who asks: I’m a busy professional and have several friends that also have money to invest. I am considering inviting my friends to invest along with me but am conflicted. If there are problems with the investment, I don’t want to damage the friendships. At the same time if these are good investments, it would seem disloyal not to invite my friends along the same journey. What are your thoughts on co-investing with friends and how one might structure such a venture?  ------------- Host: Victor Menasce email: [email protected]

There are numerous misconceptions about the oil market. As a result, we have many people including the mainstream media drawing incorrect conclusions about the economy. On today’s show I’m gong to go deep on a few of these items. -------------- Host: Victor Menasce email: [email protected]

On today's show George and I are talking about the current market cycle and what signs to look for when seeking inflection points in the cycle. George was very clear. Get to the specifics and stay away from the macro discussion. But the appraisers who determine valuations don't always see it the same way. Listen to my conversation with George Ross. ------------- Host: Victor Menasce email: [email protected]

Brian Boyd is based in Nashville Tennessee where he is practicing tax law. On today's show we are talking about some of the proposed changes to the US Tax Code and how real estate investors could adapt to those changes if they come to fruition. To connect with Brian visit briantboyd.com. ------------ Host: Victor Menasce email: [email protected]

On today’s show we’re going to take you through thought experiment. I’m going to give you two distinct sales pitches. I’m going to bet that most people will choose the lifestyle investment.  The first is a luxury condo located in paradise. When you are not staying in your condo, it goes into the hotel's pool of rooms and you share in the hotel revenue. Hotel guests will pay for your vacation property. The second sales pitch is for a two acre parcel of land in the downtown core that may have future development potential. For now, it’s a parking lot for 200 vehicles. The parking lot has daily and hourly rates, and a discounted rate for evenings and weekends. Parking is expensive at $24 per day or six dollars an hour for the first four hours, after which you pay the full day rate. The parking lot is often full each day. The land is expensive at $8M. If you finance a large percentage of the purchase, you are facing a debt service amount of about $56,000 a month.  The parking lot is not very sexy. It’s parking, surrounded by high rise office towers in the downtown core.  One of these will appeal to the true analytic investor, and the other will appeal to the lifestyle investor.  How many of the lifestyle investors will decline to even consider the parking lot?  -------------- Host: Victor Menasce email: [email protected]

On today’s show we are taking a look at a report that was published by Fannie Mae’s research team on Monday of this week. Fannie Mae’s research team is under the direction of Chief Economist Dr. Doug Duncan who is a past guest on this show. We are accustomed to getting overall market updates from Fannie Mae. This one was very different in that it was very narrowly focused on the insurance. I don’t ever recall seeing a report like this from Fannie Mae focused on a single expense line item.  It contains a pretty detailed and comprehensive explanation of what has happened over the past two years in insurance and how it has impacted multi-family investors. Here's a link to the full report. https://www.fanniemae.com/media/51396/display

On today’s show we are looking at the special considerations associated with developing a waterfront property.  There are some special risks associated with waterfront that might not exist in other more central locations. -------------- Host: Victor Menasce email: [email protected]

On today’s show we are taking a look at market inefficiency and why it occurs.  When I say inefficiency, we see markets oscillating between being vastly under supplied to over supplied and back.  The signs of inefficiency are everywhere if you choose to look. But why is it happening? -------------- Host: Victor Menasce email: [email protected]

On today’s show we are talking about the biggest things I look for when it comes to building on a new site. If you know the product that you are looking to build, then the hard cost of construction is fairly easy to estimate with pretty good accuracy. The largest variable is the site related costs. These can quickly spiral out of control. These risks are so severe that they can represent an existential threat to your project.  The risks break down into three main categories: servicing of utilities and access  Storm water management  Structural and Geotechnical ----------------- Host: Victor Menasce email: [email protected]

Chris Eymann is based in Arizona where he does a high volume of house flips. He is also a lender. On today's show we are talking about the state of the market from the perspective of a lender. He can be reached on Instagram at chris_eymann or visit his property website at sellwholesalehouses.com. ------------- Host: Victor Menasce email: [email protected]

Adam Goldman is a specialist in placing franchises with owners. Some commercial spaces struggle to find a tenant and a franchise can often be a solution to that problem. To connect with Adam visit franchisecoach.net or book a consultation with him directly at franchiseadam.com will get you a link to book a meeting time with him. -------------- Host: Victor Menasce email: [email protected]

Have you ever wondered how the mapping software on your phone can alert you to a traffic jam?  It doesn’t matter if you are using an android phone or an iPhone, the mapping software uses the same basic technique for determining what is happening in traffic. If your phone has location tracking turned on, then the operating system services will report back to Google or to Apple Maps the moving speed estimation of your phone and all of the other phones that are currently travelling along that stretch of highway.  By collecting the aggregate information, they can determine the average speed that phones are travelling along that stretch of freeway. Since most of those phones are located with their owners inside a vehicle, we can infer that the cars and trucks are traveling at the same speed as the phones. If the speed limit on that stretch of road is 60, and the average speed is 30, they will probably color code that section of freeway in yellow and if the average speed is 10, they will probably color code that section of freeway in red to denote a severe traffic jam.  Now you might be wondering why I’m telling you this on a real estate podcast. What the heck does this have to do with real estate? Well, this same technology can be applied to other types of analysis that are extremely useful to real estate investors. Let’s imagine for a moment that you want to invest in retail real estate, maybe a shopping center. In this case you don’t care how fast the phone is traveling, you want to know where all the phones are going. Where are they stopping?  What if you could use this location information in a much more granular way. Let’s say that you wanted to open a shoe store in a particular mall, it might be useful to assess the foot traffic to the mall, to other shoe stores and other clothing stores in the area. This same technology can be used to tabulate the movement of cell phones according to location.  ------------- Host: Victor Menasce email: [email protected]

On today’s show we are taking a look at a white paper that has been published on the White House website late last year. The document is called “COMMERCIAL TO RESIDENTIAL CONVERSIONS: A GUIDEBOOK TO AVAILABLE FEDERAL RESOURCES” This 54 page document outlines all of the programs that are available to at the Federal level to assist in these types of conversions. In addition to the Federal programs there are a number of local and state programs that are aiming to help facilitate these conversions. https://www.whitehouse.gov/wp-content/uploads/2023/10/Commercial-to-Residential-Conversions-Guidebook.pdf ------------- Host: Victor Menasce email: [email protected]

Marc writes: I'm a real estate asset manager and developer with operations across Alberta, Quebec, and Ontario. I’m contemplating centralizing our legal operations to not only streamline communication but also consolidate all our legal documents into a single internal database, instead of having them scattered across different legal teams.  I'm thinking of employing an internal paralegal to work with external lawyers, similar to our model of using internal bookkeepers with external accountants. What advantages or complications could arise from such a centralized approach? How might this affect the efficiency and quality of legal services we receive?  Any thoughts in general? ----------- Host: Victor Menasce email: [email protected]

On today’s show we are talking about the merits of having a high speed charging station on your property. A charger is an income producing asset, or at least it might be depending on the contractual arrangement.  ------------- Host: Victor Menasce email: [email protected]

On today’s show we are talking about the non headline revisions to economic data.  I’m here to tell you beyond a shadow of a doubt that the US economy is in recession.  What I’m sharing today is the good work that is done by Danielle DiMartino Booth. She is the CEO and chief strategist at QI Research. Previously Danielle was at the Federal Reserve Bank of Dallas for nine years working under Richard Fisher.  This past FOMC meeting marked a significant departure from previous meetings where Fed chairman Jerome Powell described a change in Fed posture. This was not part of the initial remarks or the press release, but rather a response during the question period.  He said that the Fed was shifting posture from fighting inflation to a return to its dual mandate to both maximize and maintain price stability. That means that the Fed is seeing something in the employment data that is concerning. On this show I’ve been reporting inconsistencies in the employment data for many months.  Well now we have one more data point that categorically shows what is really happening in the jobs market.  Every month the BLS puts out the payroll establishment survey and they publish the GDP for the nation.  In addition to the payroll survey, the census bureau also conducts their own survey once a quarter. The data from the Census Bureau is much more comprehensive than the BLS survey. We also experience frequent revisions to the payroll survey.  What the census data shows is that in the third quarter of 2023 instead of having 640,000 jobs created during that three month period, the economy actually lost 190,000 jobs in that time period. This is not a small difference. The narrative in the mainstream media is that the economy is strong and the consumer is resilient and the jobs market is strong. If the true data was being reported, I think it would be much more difficult to propagate that story. 

Max Hansen has been practicing law for more than 40 years and is a true expert in tax sheltering with section 1031 of the US tax code. On today's show we are talking about some of the common pitfalls of using the 1031 exchange. Coming up on May 21 at 8PM EDT, 6PM MDT, we are going to be hosting an educational webinar where Max will be available to answer your questions live on sheltering capital gains. The best way to understand the process is with your own specific questions. To register for the webinar, click on the link below. https://event.webinarjam.com/register/25/n0n36u77 -------------- Host: Victor Menasce email: [email protected]

On today's show we are talking about land development in Florida, about buying at the right time, and the elongated timelines associated with land development. To connect with Josh, search for Joshua Pardue on all of the major social media platforms. ---------------- Host: Victor Menasce email: [email protected]

On today’s show we are talking about the kinds of questions that are helpful when determining the scope of a project.  We are often given estimates by contractors for work to be performed. Those elements that have the largest variability continually seem to be related to site work.  I often experience sticker shock with these estimates.  The key to getting an optimized cost starts with determining the proper scope of work. If you’re simply negotiating with a contractor to lower their price, that’s a pretty blunt instrument. The contractor is going to feel squeezed and they are simply seeing their margin being eroded.  But if you approach the conversation from the perspective of making sure the contractor gets fairly paid for their work. You just want to make sure that we have a common understanding of the scope of work, that context usually changes the nature of the conversation. The bottom line number may actually increase in the event that the estimate is low.  In order to have a meaningful conversation about the scope of work, you need to be prepared to go deep with the contractor on the assumptions behind the estimate.  ------------ Host: Victor Menasce email: [email protected]

Back in the 1960’s the first disposable diapers were introduced by Proctor and Gamble under the Pampers brand name. Cloth diapers had been the staple up until then and these new wonders were supposed to buy back time for new mothers who were previously saddled with massive amounts of laundry.  By the mid 1970’s, Kimberly-Clark, the makes of Kleenex introduced the Huggies brand of diapers. This alternative to Pampers started to gain market share. In the meantime, Proctor and Gamble also introduced another brand of diapers called Luvs. Throughout the years there were numerous innovations in diaper technology including different fasteners, better form fitting around the legs, increased gel content and so on. With each new innovation, the manufacturers had a choice as to where to introduce those innovations. Pampers had been the dominant brand. They owned the market. They were the world reserve currency of disposable diapers.  Huggies was there in the background with a distant second in market share.  ------------ Host: Victor Menasce email: [email protected]

Virtually every apartment project is going to be constrained by parking. That one factor will determine the density that is going to be possible.  In rental apartments, charging for parking is going to very from one area to another.  For example in a dense urban area like NYC or Boston, it’s fairly routine to charge for parking. In fact, in cities like NY, I consider a car to be more of a liability than an asset. Those areas have very effective public transit and finding parking at your destination is going to take so much time that you would spend less time and less money if you simply took an Uber or a Taxi to your destination.  In less dense areas and in places where public transit is not deeply ingrained into the culture like in Texas or Arizona, a car is a must. The distances are too large and public transit simply is not an option. Except in the rarest of instances, parking is free. So when you are designing your apartment project, how much land should you allocate to parking? Well, you’ll be surprised to hear that it’s about the same as your floor area ratio.  By the time you factor in visitor parking and accessible parking, the parking ratio is going to be pretty close to 2 parking spaces for every apartment. Some projects are not going to be viable with less than a parking ratio of less than 1.75. I’m seeing cities create incentives to reduce the parking ratio below 1.0. In some cases I’m seeing ratios of 0.7 and 0.5. In places where there is public transit within walking distance, I’m seeing buildings approved with zero parking. I personally don’t think that the market will support those buildings in the long term. If someone wants to own a car at some point, they need to move. If they get into a relationship with someone who owns a car, that person faces the choice of parking or their new found relationship. Chances are they will have to move. This translates into higher tenant turnover.  Parking is a loss leader from the perspective of a developer. It is not a source of revenue, and is simply a necessary cost. 

On today show we are looking at whether increasing interest rates is effective at combatting inflation.  The theory is that when interest rates rise, people are encouraged to save money and benefit from the income that is available from those higher interest rates. This is particularly true if interest rates are higher than the rate of inflation, so that you get a real positive rate of return on interest-bearing instruments. When I think back to the early 1980s, I can remember conversations with my mother about putting my savings into high-yield bonds that were government-backed. I did not truly understand the math behind nominal interest rates versus real interest rates at the time I was particularly impressed when in that one year, I earned 18% interest on a $10,000 bond. For a teenager that $1800 in interest was a lot of money. In the late 1970’s the personal savings rate was around 9% and then in jumped in the early 1980’s to around 13%. These were the days when Pauli Volcker pushed Fed interest rates all the way up to 19%.  That steadily declined until it hit a low in 2005 of 1.4% and then another low again in 2007 of 1.9%.  We witnessed a bit of a recovery in personal savings through the 2010’s to about 8.5% in 2019. Then with all of the stimulus money during the pandemic, personal savings jumped to 32% in 2020, before falling down to 12%, and then spiked again to 26% in the second wave of the pandemic.  Personal savings rates are now down to 3.2% after nearly two years of rising interest rates. The increase in interest rates is not having the desired effect. People are not saving more. Not only that, credit card balances are through the roof. Revolving consumer credit increased to nearly $1.1T in the first quarter, up from $727B in April of 2021. This supposedly strong economy is being funded by credit card debt. People are running out of credit.  ---------- Host: Victor Menasce email: [email protected]