This question comes from Marc who writes: I’m not sure how I feel about corporately owned single family homes. Part of me thinks that ultimately this will destroy the fabric of a community if too much of the country’s single family housing stock is owned by large corporations. Maybe I’m not seeing it, but how in your mind does corporate ownership of single family homes benefit communities? -------------- Host: Victor Menasce email: [email protected]

On today’s show we are talking about the power of a platform. Amazon is one of the most widely used sites on the internet. In fact, they also have 1.5M employees. We will come back to that later.  Jeff Bezos and Marc Benioff recently entered the real estate game in a big way.  Marc Benioff is well known for being a founder at salesforce.com and he has a personal net worth of about 10.5B. Together, Bezos and Benioff seeded Arrived Investments with funding.  Arrived invests in single family homes and in short term vacation rentals.  The company has avoided some of the hottest primary markets like Atlanta, Nashville, Austin. Instead they have focused on up and coming markets like Augusta Georgia, Savannah Georgia and Knoxville Tennessee.  To date, they count over 551,000 registered investors totalling $128M in real estate and so far have paid out $4.5M in dividends to investors. They have raised $135M and have purchased 368 properties and counting. Clearly they’ve designed an organization with the intention of scaling much larger. Their website shows a pretty complete team with about 20 people and the role descriptions I would expect for a company of this type.  ------------- Host: Victor Menasce email: [email protected]

On today’s show we are looking at the most cost effective ways to value engineer a new build and still comply with the increasingly stringent energy codes that are permeating the building code across North America. These building codes are local. That is to say, they can vary from one place to the next.  When it comes to energy codes, there are two approaches that are used. The prescriptive method Comprehensive energy model Under the prescriptive method, the building department says that if you use this type of construction, with this specific insulation in the wall and attic cavity, and continuous insulation on the outside, and heat pumps having these specs, and these types of windows having no more than a prescribed percentage of window area, then you will comply with the code.  It should come as no surprise that this kind of paint by numbers approach is going to give you an energy efficient building. But it’s also going to cost you a lot more than it needs to. The second method is using a comprehensive energy model. This is where the energy consulting engineer will create a thermal model for your building based on your local climate. It will take into account the temperature averages throughout the year and determine how much heating is going to be required in the winter and how much cooling is going to be required in the summer.  --------- Host: Victor Menasce email: [email protected]

On today’s show we are taking a look at pricing practices in the storage industry. Storage is a product that is fairly sticky.  That is to say, moving a lot of personal belongings into a storage locker is time intensive. It often involves renting a truck and taking a Saturday afternoon to make a few trips. The decision to rent a storage unit is often event driven. The storage company might even have a truck that they will rent you for “Free” to move your belongings on the way in.  But renting a truck is a hassle. It’s more expensive than renting a car. Even U-Haul has an inexpensive daily rate, but a high mileage rate. So while you might rent the truck for $29, you’re looking at a few hundred dollars when you take all of the extras into account.  Moving belongings has friction. The more friction, the more people will delay moving their belongings out of the storage. ------------ Host: Victor Menasce email: [email protected]

Matias Daroch is based in Miami Florida where he specializes in both design and development of luxury spec homes. On today's show we are talking about some of the design considerations in that part of the world. To learn more and to connect with Matias, visit http://mikarchitecture.com ------------- Host: Victor Menasce email: [email protected]

Marc is a very "active" passive investor in the sense that he performs deep due diligence on potential investments. But deep due diligence is often beyond the capacity of a single investor. On today's show we are talking about a unique approach to due diligence. To connect with Marc, visit PartTimeInvestors.com or email him directly at [email protected] ------------ Host: Victor Menasce email: [email protected]

Today's question comes from Rob who asks: What is the economic difference, and the difference in investment thesis, between the different types of RV parks? ----------- Host: Victor Menasce email: [email protected]

The statistics are clear. Inventory is rising. But what does it mean? On today's show we are looking past the numbers alone. ------------ Host: Victor Menasce email: [email protected]

On today’s show we are talking about the danger of reading headlines and making decisions based on those headlines.  A few months ago I reported on the podcast about the Corporate Transparency Act. This is that new regulation that requires millions of companies across the USA to disclose additional beneficial ownership information to the government.  In a new ruling from last week, the Corporate Transparency Act was ruled unconstitutional. But the ruling was very narrow and only applies to the plaintiff who brought the case, and the roughly 60,000 members of the National Small Business Association. It would be a mistake to think you don't need to comply with the Act, just because a narrow decision deemed the Act to be unconstitutional. I'm not here to offer any form of legal advice. You need to ask good questions of your own legal counsel. -------------- Host: Victor Menasce email: [email protected]

A number of high profile commentators have demonstrated that very few professionally managed equity funds have outperformed the market average. Fund managers are active investors. They analyze each company. The interview the CFO and the management team. They perform due diligence on the company and determine whether shares in that company fit within the fund mandate and they then make an investment decision for the fund’s investors. This is what is considered the active component of the stock market.  The second form of investing is what is called passive investing. This is where you put funds into an index fund and there is absolutely no intelligence being applied to the purchase. The index is computed according to a formula and if there are 500 companies in the index as in the case of the S&P 500, you’re buying a tiny sliver of 500 companies simply by investing in the index fund.  There’s a lot of evidence that passive index funds have outperformed the active over the longer term. Now passive funds have not been around that long, but over the history passive funds have outperformed active funds.  So if that’s true, then why take the risk, pay the premium fees associated with a stock mutual fund, and the still end up with inferior performance.  ----------------- Host: Victor Menasce email: [email protected]

There is no doubt that the lock in effect has reduced the amount of mobility in most forms of real estate. The higher interest rate environment has dramatically reduced the number of people who are willing to give up their low interest rate mortgage and move to another property where their cost of borrowing is going to be much higher. Some have chosen to move and put the house that they own on the rental market and in turn to rent at their new location. In these cases people are often moving for work and the decision to move is entirely based on financial considerations. So we know that fewer people are selling. But what about in the rental market? Is absorption and mobility up or down in the past year? Well all of the data that I have seen suggests that rental moves are down as well in most markets. For landlords of existing stabilized properties, the lower unit turnover can translate into higher profit margins. While rents are not increasing as they did in 2021 and 2022 and to a lesser extent in 2023, the lower turnover means lower turnover costs. ------------ Host: Victor Menasce email: [email protected]

Zach Jensen owns an acountng firm in San Diego, Califrnia. On today's show we're talking about the beneifts of being classified as a real estate professional and what it takes to qualify for this. To connect with Zach and his firm, visit taxwisecorp.com ------------------- Host: Victor Menasce email: [email protected]

Pasha Esfandiary is based in Los Angeles where he established himself as a professional poker player. Despite being successful at poker, he pivoted into the world of real estate investing and has applied the lessons of poker in his new career. On today's show we are exploring those lessons. To connect with Pasha, visit https://www.evokecapital.net/ -------------- Host: Victor Menasce email: [email protected]

Our book this month is called Scary Smart by. Mo Gawdat. Mo was the Chief Business Officer at Google where he was responsible for much of Google’s global expansion, country specific localization and the introduction of translation and voice recognition all over the world. He’s a super smart guy and he has been an insider when it comes to Google’s AI projects. Prior to Google, Mo was at Microsoft. When I heard a podcast where he was speaking on his perspectives on AI, I knew I needed to read this book.  Computing has accelerated according to Moore’s Law which predicted a doubling of the density of circuits on a chip every 18 months. That held true for a long time. We keep thinking that we are reaching the fundamental limits of circuit density. Merely shrinking the feature size of the transistors is starting to approach fundamental limits like the number of atoms needed to make up a circuit. The advent of accelerated computing in the form of graphics processing engines of the type that Nvidia and AMD create has enabled the backbone of the AI revolution. Machine learning is the second dimension of acceleration. The pace with which machines are able to learn is also accelerating. Think of AI like fuel that will amplify and accelerate virtually every aspect of life. The super rich will get richer. The lazy will get lazier. The security system and law enforcement will become more vigilant. The weapons systems will become more ruthless. Marketing will become more targeted and more sophisticated. Loopholes in the tax code will become easier to find. The list of accelerated aspects of our lives is extensive. ---------------- Host: Victor Menasce email: [email protected]

Storage is an industry segment that has been growing rapidly for the last few decades. But this has been impacted by the recent decline in the residential real estate market in the past 24 months. Across the United States there has been a decline in storage occupancy and operators have been offering increased incentives for their retail storage offerings. So the question is why the sudden drop in prices? Is the industry over supplied? Are the traditional metrics for storage space as a function of population density no longer valid? ----------- Host: Victor Menasce email: [email protected]

On yesterday’s show we looked at a couple of the hedonic adjustments that the BLS makes when computing GDP and the consumer price index. On today’s show we are going to take a look at the real estate component of the CPI. Part of the contribution to elevated inflation over the past couple of years has been the nearly white hot acceleration of real estate prices. That’s partly a function of purchase price. But the BLS doesn’t factor that into the cost of housing. Instead, the treat the entire real estate marketplace as if it consisted of landlords and tenants, despite the fact that home ownership represents about 66% of households across the nation.  What I will reveal on today's show would be funny if it wasn't so tragic. ------------ Host: Victor Menasce email: [email protected]

On today’s show we are taking a closer look at the various components of the consumer price index and how it is calculated. Today's show will probably shock you. ------------ Host: Victor Menasce email: [email protected]

Today’s question comes from Marc in Montreal. I recently got an as-built appraisal report that I wish to use for financing for a new apartment complex in a semi-rural location with lots of industry and extremely low vacancy.  The appraiser is quoting a higher CAP Rate than I was expecting, citing the following.  First, he is using comparables a couple of hundred miles away, in the same province.  Second, he is stating that the Bank of Canada has not lowered interest rates, when multifamily lends on a more floating bond rate.  Third, his only comparable in the same market appears to be an inferior product with less amenities.  Fourth, he is saying that the site is not serviced, but I can tell you that the municipal government has stated that servicing will come in time for the construction.  What kind of arguments can I make to gently push the appraiser to a more favourable CAP Rate?" ------------- Host: Victor Menasce email: [email protected]

Brock Holliman is based in Sarasota Florida where he develops build to rent communities in an infill context. Today's conversation is filled with powerful market insights. To connect with Brock, visit hollimancapital.com or connect with Brock at @follow.brock on various social media such as Instagram, Facebook, Youtube, etc. ----------- Host: Victor Menasce email: [email protected]

Michael Flight specializes in shopping centers. He was our guest last weekend where we talked about the state of retail. Michael is also a pioneer in the world of applying crypto technology to real estate and how real estate can become tradable using blockchain technology. I've had numerous conversations with proponents of this technology and today's talk was the first one that actually made sense to me. This is one you definitely want to pay attention to. To connect with Michael and to download his white paper on tokenization, visit http://investonmain.com -------------- Host: Victor Menasce email: [email protected]

The allure of hunting for that perfect deal can be intoxicating. I hear of many investors often spend countless hours scouring listings, attending networking events, and analyzing market trends. But what if I told you that there’s an alternative approach—one that doesn’t involve the relentless pursuit of deals? Welcome to the all-you-can-eat buffet of CRE investing. ---------- Host: Victor Menasce email: [email protected]

Commercial brokerage JLL just published their retail real estate report for 4Q2023. The report contains a number of interesting insights.  Today’s show complements the interview we had with Michael Flight last weekend on shopping centres. Michael has been investing in shopping centres for decades and he is a real expert in the space.  The JLL report highlights that the majority of the growth is in the southern states.  ------- Host: Victor Menasce email: [email protected]

On today’s show we are focusing on a change that is looming in the world of real estate marketing.  It’s well established that the average person has a hard time visualizing what their new home or perhaps their rental apartment will look like when fully furnished. Some furniture businesses have been investing heavily in the technology to help you visualize what their furniture would look like if placed in your home. That is very useful and can really help potential customers in making a buying decision on that new sofa or coffee table.  When a developer shows renderings of a future project these images or animations are helpful in visualizing the future project.  But there is little doubt that what we are seeing is an artists rendition. Nobody is fooled into thinking that they are seeing a real image. The images and videos are helpful, but not misleading.  Enter the world of generative artificial intelligence. The next version of Chat GPT is version 5 which has not been released. Some of the industry analysts that I follow are saying that version 5 has not been released because it is actually too realistic.  From a text description, it is possible to generate a photorealistic video that matches the text directive. The problem is not that an animation can be created from a text description. That’s cool and frankly even desirable for a number of applications.  The problem is that if an AI generated video is indistinguishable from a real video, the brain has a problem consuming any content in the future. We have no moral, ethical or psychological dilemma when viewing an animation. ----------- Host: Victor Menasce email: [email protected]

What type of organization do you want to work with? Are bigger organizations necessarily better? We’ve all heard of the Pareto Principle, this is sometimes called the 80/20 rule.  80% of the revenue comes from 20% of the customers. 80% of the complaints come from 20% of the customers. 80% of the wear on a carpet happens on 20% of the surface area. There are countless examples.  It’s not a rule, or even a law, but something that occurs with enough frequency that it’s got to be more than coincidence.  A less known rule is called Price’s Law. This speaks to the productivity in an organization. It says that 50% of the work is done by the square root of the total number of people in the group.  So if you have four people in the group, then 50% of the work will be done by two people. Seems pretty efficient so far.  If you have 100 people in the group, then only 10 people in the group will be responsible for 50% of the output, and the remaining 90% will contribute to the remaining 50% of the output. Now either the 90% are really awful, or the other 10% are extraordinary.  ------------ Host: Victor Menasce email: [email protected]

On today’s show we’re talking about what’s wrong with today’s internet. You might be wondering why we are talking about technology on a real estate podcast. It’s because the internet is the primary source of information for real estate investors and developers. We’ve come to rely on it. If the document you seek is not accessible online, then it’s as if it doesn’t exist. If it is online, but you can’t find it, then the effect is the same.  Today’s internet has not adapted to the introduction of AI.  Search algorithms rank the search results based on popularity. That’s why Amazon ranks higher than the independent corner bookstore that’s across the street from the University in your home town selling used books. Intuitively that makes sense. In an orderly world where natural organic traffic forms the majority of traffic, this approach makes sense.  Of course there are numerous other criteria that Google and other search engines like Bing use to determine when to present a result. Google has become pretty good at distinguishing between legitimate and spam content. The search algorithms have become progressively smarter at staying ahead of attempts to fool the algorithm. But in recent months, there has been a degradation.  ------------- Host: Victor Menasce email: [email protected]

Chris Miles comes from the world of life insurance sales. On today's show we're piercing the veil on some of the practices that are rampant in that industry that everyone needs to know about. To connect with Chris, visit moneyripples.com or check out his Money Ripples youtube channel. -------------- Host: Victor Menasce email: [email protected]

On today's show we're talking with Michael Flight. He's been investing retail since the early 1980's. We're talking today about the pressure points in retail. To connect with Michael or to learn more visit libertyfund.io. There are numerous resources on the website. ------------- Host: Victor Menasce email: [email protected]

On today’s show we are talking about some of the structures out there, pooling of funds in a blind fund, or investing in an individual project. There are so many ways to invest. The question is, what are the pros and cons of one approach versus the other.  It really starts with getting educated on the type of investment that is going to fit for you. Investments run the full gamut, from buying existing stabilized assets at one end of the spectrum to undertaking large scale development at the other end of the spectrum. These are vastly different in terms of the rates of return that are possible, as well as the timeline and the risks associated with each of the asset types.  In general, Greenfield development projects have the greatest value creation potential but take the longest to bring to fruition. Fully stabilized projects deliver cash flow from day one, but have limited short term upside. Growth in value will come through rent growth over the longer term.  When evaluating any investment, we always look at three major factors  the team The specific sub market  The deal itself.  Due diligence on all three of these elements takes a lot of effort to do it  thoroughly.  ------------ Host: Victor Menasce email: [email protected]

On today’s show we are talking about government taking land from you with what appears to be no compensation.  The concept of eminent domain is well entrenched in real estate law. It says that government can demand your land in exchange for just compensation if the taking of that land is in the public interest.  For example, if the public good is served by building a new freeway or an airport, the only way to assemble the land would be by undertaking a claim under eminent domain.  But there is another way to get the needed land, slowly over time. Increasingly cities are using this other method to get what they need without paying a single penny to get it.  They will ask you to donate the land.  Where we see this most often is when the property fronts on a major arterial or collector road.  As density increases those streets need to widen to handle more traffic. Along the way some enterprising developer realizes that this would be a good location for an apartment building and requests a zoning change.  In exchange for the increase in density, the city may ask you to donate a strip of land to the city in order to enable future widening of the road when the time comes.  ------------ Host: Victor Menasce email: [email protected]

On today’s show we are talking about making sense of the conflicting economic data that is being reported by different government departments.  Let’s start with GDP and then we will look at employment numbers, and finally we will look at inflation versus real earnings.  ------------ Host: Victor Menasce email: [email protected]

I’m a real estate developer. I’m pro-development. I’ve had projects denied by city council as a result of community opposition. In every case, I’ve been shocked by the intensity of community opposition and truly felt that our project was designed to enhance the community, and not detract from it.  Some community opposition has been based on absolutely made up stories that are not at all connected with reality. That’s a polite way of saying that residents in some cases will tell a lie to further their objective of keeping growth away from their community.  Last week I joined a community opposition group. The experience has been a fantastic learning. So much so, that I thought it would be worth sharing the experience with you.  On today’s show I’m sharing my personal experience being part of a community opposition group. This was a Facebook group that surfaced around a proposed suburban development project that local residents think is too big, and out of place with the suburb at the far extremity of the urban boundary. Th project consists of 431 apartments, including a 25 story tower. The original proposal for the site was three 9 story buildings, which already would be a stretch for the community.   The group is barely a week old and has 618 members. The target is a public hearing involving the local city councillor that is scheduled for two weeks from the date the group was formed.  ----------- Host: Victor Menasce email: [email protected]

On today’s show we’re talking about the immigration, migration, deportation, and human lives. Earlier this week I had a conversation with Juan. He’s Mexican and lived in Austin Texas from the age of 5 until the age of 27 when he was deported back to Mexico. Juan entered the US illegally with his family at the age of five. Clearly he didn’t have the capacity to make that decision for himself. He speaks perfect English. He had a job in Austin and he was a full contributing member of the community. He had both family and friends in Austin. One day he was driving on the highway and got pulled over by a police officer for an aggressive lane change. He lacked the proper documentation. That started a chain of events that resulted in three nights in a prison cell before being deported back to Mexico.  Juan is barred from re-entering the US for 10 years. He can apply to come into the country properly, but only after that waiting period.  The number of people traversing the US southern border is averaging between 5-6 thousand per day. That’s a huge number. They’re coming from all over the world, not just Mexico or Central America as was previously the norm.  Those who are seeking asylum from persecution should be able to find sanctuary somewhere in the world. That’s basic human rights.  My family escaped WW2 and came into the USA through Ellis Island. Millions, including my grandparents were not so lucky.  Most western nations need immigration just to maintain population. Maintaining population is essential for economic growth. Shrinking population causes systemic economic recession.  The fact is that the entire debate has become so intensely partisan that it’s become virtually impossible to get the truth about what is happening.  Juan says he’s committed to coming back to the US the right way. He has friends that have offered to help him get back into the country and have offered him accommodations. But he has refused that offer. He wants the respect the law.  He has four years remaining before he can apply. He has lived the majority of his life in Austin and is culturally American in every way. I hope he gets back in. Juan’s story is one of millions. He’s a statistic, but he’s also a real person with real dreams and aspirations.  -------------- Host: Victor Menasce email: [email protected]

Bronson Hill is based in Los Angeles California. On today's show we're talking about the shift that has taken place in the market over the past six months. To connect with Bronson, visit bronsonequity.com. -------------- Host: Victor Menasce email: [email protected]

On today's show we're talking with George about some of the current events in the news and how this will affect real estate investors. ------------ Host: Victor Menasce email: [email protected]

On today’s show we are talking about major international events and the impact on real estate from those events. Major cities have sought to host events like the Olympics, the World Expo, The world Cup of Soccer, The PanAm Games, the Commonwealth Games and so on.  Each of these events brings with it the need to build the appropriate event space, accommodations for the visitors during the events themselves, and of course a tremendous amount of infrastructure. On today’s show we are looking at the legacy of major events, a decade after the event is over. ------------ Host: Victor Menasce email: [email protected]

Today's question comes from Greg in Virginia who writes: Love the show. I am constantly amazed at your depth of knowledge. My AMA is: I’ve heard you and others state many commercial office buildings are not suited for conversion to apartments and would likely need to be demolished and rebuilt for apartment living. Understood, however, if the office buildings are vacant, meaning no jobs, is there even demand for these additional apartments?  Common sense says invest and build where net in migration occurs, not where people are leaving. If the offices are empty, the assumption is people are leaving. I look forward to your wisdom. ------------ Host: Victor Menasce

On today’s show we are talking about inclusionary zoning. This is a new initiative in many communities aimed at creating affordable housing.  The actual goal of inclusionary zoning varies from one community to another. In some locations there is a narrative that single family detached homes create an economic divide and therefore widen racial segregation that is implicit with economically segregated neighbourhoods. You won’t find an affordable home in the middle of a neighborhood surrounded by luxury homes.  In other communities, the definition of inclusionary zoning is aimed at creating affordable housing by effectively taxing developers with burden of building a number of affordable units in exchange for the right to build a number of market rate homes. The theory is that by sprinkling affordable housing throughout the city as part of new development projects, you prevent the ghetto effect of lower income areas separated from the more affluent areas.  Inclusionary zoning programs vary widely in their implementation. In some cases, developers may also have the option  of  building  affordable units in other locations within a city, or they may be able to pay cash instead of developing affordable units. ---------- Host: Victor Menasce

US Federal politics might be appropriately described as legislative gridlock.  You can’t seem to get a single piece of legislation through the house and the senate on its own merits. These omnibus bills seem to get loaded up with dozens and sometimes hundreds of provisions, each one designed to amass the number of votes needed to get a majority vote in the House and the Senate. The move to restore 100 percent depreciation took a step forward with the U.S. House's approval of the Tax Relief for American Families and Workers Act of 2024 last Friday.  For real estate investors, what the bill essentially says is that the 100% bonus depreciation is extended. Under the 2017 tax code, the bonus depreciation would have been calculated as 100% bonus depreciation in 2022, 80% in 2023, 60% in 2024 and so on down to zero.  Under the amendment, the 100% depreciation is extended until 2027. Not only that, the bonus depreciation is retroactively calculated at 100% for the year 2023 which just ended. I recently did an interview with CPA Mike Pine from Pine & Co in Dallas. It’s an incredibly useful session on how to effectively use depreciation as part of your investment strategy. I’ve included a link to the video replay of that session with CPA Mike Pine HERE. So if you want to save a bucket load on your taxes, using the benefits of depreciation this particular session should help make the power of this tool pretty clear.  This piece of legislation is something that almost all real estate investors are going to want to follow closely over the next 30 days or so.  ------------ Host: Victor Menasce email: [email protected]

A Shun of the bank is not the same as a run on the bank. But the effect can sometimes be the same.  The latest bank to suffer from the banking crisis that erupted last year is a name that most people might not remember. NY Community Bancorp announced their year end financial results and their 4th quarter results.  The bank was the winning bidder in the auction to take over the assets of Signature Bank when it failed in the Spring of 2023. Signature was the second bank to fail after Silicon Valley Bank.  NY Community Bancorp completed two acquisitions in less than a year. They bought Flagstar Bank in December of 2022 and Signature in the Spring of 23. They took on nearly 40 branches that belonged to Signature Bank and  $38B in Assets from the FDIC. At the time they trumpeted how good a deal they got on the assets. Well, they made a surprise announcement last week as part of their Q4 financials.  ------------ Host: Victor Menasce email: [email protected]

Paul Moore is the principal at Wellings Capital who are now on their sixth fund. Their latest fund is focused on preferred equity and on today's show we're talking about one company's take on how to use preferred equity effectively in deals. To connect with Paul, visit wellingscapital.com where they have some useful resources on their resource page. -------------- Host: Victor Menasce email: [email protected]

Dave Foster is a specialist in tax deferred exchanges. You can connect with him at https://the1031investor.com. On today's show we are taking about where is the fuzzy line between capital gains treatment and ordinary business income treatment when in comes to land investing. ------------- Host: Victor Menasce email: [email protected]

We often get questions from clients and even listeners to the podcast about the merits of a legal case. To be clear, we are not lawyers and the purpose of today’s show is not to provide legal advice in any way.  The purpose of today’s show is to illustrate the uncertainty of the legal process. I’m going to report on a case of a commercial lease in the province of Ontario. Commercial leases really are fully described by the contract and are usually not subject to being torn apart by a tenant board in the way that a residential lease might be. The interpretation is going to rely largely on the wording of the lease and much less on outside legislation that might trump the lease.  ------------- Host: Victor Menasce email: [email protected]

Our book this month is a brand new book that was just released two weeks ago called “How to Make a few Billion Dollars “ by Brad Jacobs. Brad is a serial entrepreneur at the highest level having built multiple multi-billion dollar companies in succession. When I heard his story it became obvious that he had something to teach me. Throughout the book he takes the reader through his thought process. He talks about how he had to rewire his brain to reject the social conditioning. ------------ Host: Victor Menasce email: [email protected]

Today’s question comes from Ramon who writes: Dropping a quick note to thank you again for all that you do to make the RE Espresso amazing. I can’t imagine how much work it must be for you to consistently create such high-quality content. I hope you know how much value I and many others get from it. Specifically, your recent mini-series on business planning has been phenomenal, amazing insight into how to keep an organization aligned in working towards the right goals. Wondering if you would have any interest in doing a similar mini-series (or even single episode) on how you built Y Street Capital in the early days. How did you balance the financial commitment of expanding the team, building-out office space, etc, given the difficulty for a RE developer to accurately forecast the timing to generate revenue/liquidity events - especially in the early days before you had a solid base of cash flow from existing stabilized projects and consulting clients - vs the need for high quality help to sheppard projects and evaluate new opportunities? I think many people struggle with this chicken and egg problem and would be interested to hear how you approached it. -------------- Host: Victor Menasce email: [email protected]

On today’s show we are talking about commercial real estate and office in particular.  The main stream media remain fixated on reporting the averages. They are focused on the bigger macro picture. For example last week the Wall Street Journal published a story all about the commercial debt that is scheduled to mature over the next few years.  More than $2.2 trillion in debt is maturing before 2028, and much of that will have to be refinanced at higher rates. But it’s actually missing the larger underlying problem. When you layer the two problems together, its hard to see a path to success for most office buildings.  Last week I was in NYC and met with some senior folks from JLL. NYC has now over 100M square feet of vacant office space.  There are only 7 cities in the US having more than 100M square feet of office. NYC has more than 100M SF of vacant office space. ------------ Host: Victor Menasce email: [email protected]

On today’s show we are taking another look at the world of energy and some of the disruptions that could result in major economic and geopolitical disruption far beyond the turbulence our world is currently facing.  Today’s show is about unintended consequences. ------------- Host: Victor Menasce email: [email protected]

Peter Roisman is based in Puerto Rico where he is the principal at revmlc.com. The company specializes in rating leasing performance for multi-family properties and then training property managers to improve their performance when it comes to leasing. Most property managers don't treat leasing as a core excellence. The scores across most multi-family properties confirm this. To connect and to learn more, visit revmlc.com. ------------ Host: Victor Menasce email: [email protected]

Eric Rice is based in Dallas Texas where he is in a business development role at King Operating. On today's show we are taking a look at various facets of oil and gas exploration. This is perhaps the highest risk end of the spectrum when it comes to oil and gas investing and I'm saying this from personal experience. To connect with Eric and to learn more, visit kingoperating.com --------------- Host: Victor Menasce email: [email protected]