Real Estate Espresso
By Victor Menasce
Hot To Verify A Construction Budget Estimate
On today’s show we are talking about how to scrutinize a quote for construction.
Earlier this week we received a budgetary estimate for a new construction project. Needless to say, the price was high relative to what we were expecting. So now that you have an estimate, how do you dig in and scrutinize where it is off base?
This falls into a category called “know your numbers”. That means knowing your numbers at a detailed level for specific line items.
I’m going to take you through a few specific line items, not to get lost in the details of this particular project, but rather to understand the thought process inherent in this kind of work.
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Host: Victor Menasce
email: podcast@victorjm.com
Aluminum Wiring Can Burn Your Home
On today’s show we are talking about aluminum wiring in apartment complexes. This was common from the 1960's to the mid 1970's. About 2 million housing units are estimated to still have aluminum wiring. Some insurance companies will decline to insure your building if you have aluminum wiring and those that remain will charge extra. But there are a couple of remedial solutions.
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Host: Victor Menasce
email: podcast@victorjm.com
Flex Industrial with Grant Reaves
Grant Reaves is based in the deep south where he invests in Flex Multi-Tenant Industrial. On today's show we are talking about his strategy for adding value to these types of buildings. To connect with Grant and to learn more, visit Stoic Equity Partners at stoicep.com or email him directly at greaves@stoicep.com
Waiting It Out with Dan French
Dan French is based in Austin Texas where he has amassed a portfolio in excess of 17,000 units investing in multi-family apartments throughout the South and Southeast. He divested of the majority in 2019 when it appeared that market was overheated and has been sitting on the sidelines ever since. On today's show we are talking about the market cycle and how being patient has proven to be a virtue. To connect with Dan and to learn more, visit atxacquisitions.com or call him directly at 845-629-1808.
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Host: Victor Menasce
email: podcast@victorjm.com
Why Are Bond Yields Rising?
Real Estate Investors are gritting their teeth at the moment. The benchmark SOFR remains steady, but the 10 year treasury which is the benchmark for permanent financing has risen sharply in the past week and hit a high of 4.65% yesterday.
Many are wondering what is causing the bond yield on the 10 year Treasury to continue to rise.
We are also seeing oil prices rising at a time when major parts of the world are experiencing economic slowdown. We also have gold reaching record highs.
The obvious questions are “Why?” And what does this mean?
What Does 3.5% Inflation Really Mean?
On today’s show we are taking a look at the Macro economy. The bureau of Labor and Statistics published the latest CPI data which came in a bit hotter than expected. This is implying that the Fed will need to keep interest rates higher for longer to combat inflation. The Fed keeps saying that rates needs to be maintained higher for longer so that aggregate demand is reduced to stamp out inflation.
At least, if you read the mainstream media, that’s what they would have you believe.
The narrative is that the economy is still strong and that the GDP growth is high and unemployment is low.
In order to understand what is real in the economy we have to look closely at what is driving the economy.
When you look at all of the growth that has happened in the economy in the past year, it’s been as a result of increases in government spending. It's artificial growth, an illusion.
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Host: Victor Menasce
email: podcast@victorjm.com
Can Investor Visas Be A Good Source Of Capital
On today’s show we are talking about the EB5 Investor Visa and whether these sources of investment funds have the potential for being useful for real estate projects.
The goal of the EB-5 program is to enable immigrants to get an accelerated permanent residency permit through an investment in a qualified EB5 investment.
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Host: Victor Menasce
email: Victor@victorjm.com
AMA - Which Conferences to Attend?
Today’s question comes from Paul who asks.
I’m putting together my plan for conferences for the remainder of this year. I’m curious how you determine how much time to spend out of the office attending conferences? How do you decide which events to attend?
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Host: Victor Menasce
email: podcast@victorjm.com
How To Get Reliable Rental Market Data
On today’s show we are taking a look at data sources when it comes to understanding the market.
We know there is a gap between asking rents and contracted rents on average. Sometimes you will see a listing as a tenant and the landlord has listed the rent. Some tenants will treat the rent as a fixed number and either pay the asking rent or look elsewhere.
But then a subset of tenants will make a rental offer which might be different than the asking rent. The result is a negotiation.
The rental price might not change in that negotiation. The savvy landlord wants to preserve the value. They don’t want to change the monthly rent. So if they give a discount, they would prefer to offer a rent concession in virtually any other form.
It could be a month of free rent, as in 13 months for the price of 12. They’re still signing a 12 month lease and maybe offering the second or third month of the lease term as the free month. That way, when they compile their numbers for the end of the year, the monthly numbers look stronger even in the presence of a rent concession.
If you’re looking to make an investment, where do you go for a reliable source of rental comp numbers?
The asking rents that are publicly listed are just that, asking rents. That’s not indicative of the actual contracted rent.
We can find all kinds of market data on the internet. But before you look at that data for a particular area you need to ask yourself some important questions.
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Host: Victor Menasce
email: podcast@victorjm.com
Net Leasing with Dennis Cisterna
Dennis Cisterna is based in Las Vegas where he invests in institutional quality office and retail on a nationwide basis. On today's show we are talking about the opportunities that are evident when you're willing to go counter-current. To connect with Dennis and to learn more visit sentineloppfund.com.
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Host: Victor Menasce
email: podcast@victorjm.com
Randy Langenderfer
Randy Langenderfer is based in Houston Texas where he invests in multiple markets. Over the past decade he has invested in about 1,600 units. On today's show we are talking about finding the right partners in remote cities. To connect with Randy visit invest-ark.com
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Host: Victor Menasce
email: podcast@victorjm.com
The Shrinking Construction Workforce
On today’s show we are talking about the shortage of construction workers that has been widely reported.
From our vantage point, we are seeing a number of contradictory facts. There is a shortage of workers in many of the trades. At the same time, we know of workers who are sitting at home right now, looking for work. We know this because we are being continually solicited for work by subtrades.
We also know of architects and consulting engineers who are being laid off because of a lack of work in some markets.
It’s a strange dichotomy. There is no question that the industry has experienced a slowdown of new projects after a few years of elevated investment. However, we believe this situation is temporary. The problem is demographics. People are retiring out of the construction trades, faster than new young people are entering the trades.
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Host: Victor Menasce
email: podcast@victorjm.com
Do AirBnb Bans Work?
On today’s show we are looking at a study that was authored by three researchers at Purdue University, The College of William and Mary, and The Chinese University of Hong Kong.
The purpose of the study was to examine the impact of short term rental bans on the long term rental market.
There are many different type of ordinances affecting short term rentals. But the truth is, most municipalities do not enforce these ordinances. The end result most of the rules are ignored by landlords.
This particular study zeroed in on Irvine California which is one of a few communities that actually does enforce its ban on short term rentals in properties that have residential zoning. If you’ve spent any time in southern California, you know that the entire area is essentially one continuous city. The only way you know that you’re now in another city is because there is a sign welcoming you to the new city. Otherwise, there is no obvious boundary. If you work in Irvine, you would happily drive from Costa Mesa, or Newport Beach, or Laguna Beach, or any of a number of communities in the area if you can find a place to rent at a respectable price.
The study found that the actual contracted rental prices reflect the supply demand equilibrium whereas the asking rents are generally higher than the actual contracted rent.
The study found that in the case of Irvine, the number of Airbnb listings declined by 27% within two years of the ban.
The study also examined short term rental activities in the neighbouring cities where there was no short term rental ban in effect.
The study found that within three years of the ban, enough new supply had been brought back into the market that there was an observed decline of contracted rental pricing of 3% or the equivalent of $114 per unit across the entire market.
The academic paper is about 32 pages in length, and no doubt will be cited by numerous advocacy groups around the nation as a quality piece of research.
The authors of the paper were very focused on reduction of short term rentals as the primary source of supply entering the market. As developers, we know that construction is another source of supply entering the market.
It is possible that maybe Irvine had more rental housing constructed during that time period compared with the surrounding cities which contributed additional supply to the market. We just don’t know because the researcher failed to consider that aspect. We know that rental pricing follows the laws of supply and demand. If you’re going to look at the supply side and assess the impact of the STR ban, then you need to look at all sources of supply entering the market, not just STR to LTR conversions.
Unfortunately, the paper made no reference to new supply.
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Host: Victor Menasce
email: podcast@victorjm.com
Surveyors Can Save You
On today’s show we are talking about the importance of hiring a surveyor for every step of the building process.
The first case study is of a property located in Hawaii on the island of Puna.
A construction company has reportedly built a half-million-dollar house on the wrong property.
The second example is a public road that was built 20 feet off center and is encroaching on the neighbor's property.
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Host: Victor Menasce
email: podcast@victorjm.com
How Is This Legal?
On today’s show we are looking at what I consider to be a double standard. There is one set of rules for the average person and another set of rules for the government.
We know that using funds from new sources of funding to pay off existing investors is the very textbook definition of a Ponzi scheme. These are highly illegal and the likes of Bernie Madoff should rot in jail for stealing from people.
But there is another form of the same thing which involves investors and is sanctioned by the SEC.
Have you ever heard of a Naked Short Sale?
On today’s show I’m going to be quoting directly from the SEC regulations.
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Host: Victor Menasce
email: podcast@victorjm.com
BOM - Radically Condensed Instructions For Being Just As You Are by J Matthews
Our book this month is “Radically Condensed Instructions for Being Just as You Are” by Jennifer Matthews.
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Host: Victor Menasce
email: podcast@victorm.com
Luxury RV Park Investing with Ben Spiegel
Ben Spiegel is based in Greenwich, Connecticut where he specializes in design and construction of luxury RV Parks. This is an asset class that is often overlooked. To connect with Ben, visit redwoodcapitaladvisors.com
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Host: Victor Menasce
email: podcast@victorjm.com
Fighting City Hall with Hayden Crabtree
Hayden Crabtree is a storage developer based in Atlanta, Georgia. On today's show we are talking about a project in Fort Myers that went sideways in the approval process. This is a powerful story packed full of lessons.
To connect with Hayden, he is @haydencrabtree on Instagram. His book "Skip The Flip" is available on Amazon and his cost segregation business is at remotecostseg.com
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Host: Victor Menasce
email: podcast@victorjm.com
What Is Our Economy Doing?
While the US Federal Reserve has made very few signals about what is happening in the economy, there are many more alarms being sounded by central banks elsewhere in the world. On today’s show we are looking at what those other central banks are saying and some of the policy changes that have already occurred.
The most visible signal we are accustomed to seeing in a recession is job losses. So far, while job losses have increased, most would not consider recent job loss data to be an economic calamity.
But the signs of economic slowdown are not limited to the economies in North America.
There are numerous Countries in recession right now. Germany, Italy, France, the UK Japan are all in recession.
AMA - Buying The Neighbor's Land
Today’s question comes from Chandler who writes:
I was turned onto your podcast a little over a year ago and have received tremendous value from your insights ever since. Thank you for your consistent efforts to deliver information about the nuts and bolts of the real estate world.
A little over a year ago, I purchased my first storage facility. After completing a fairly substantial facelift on the property and aggressively managing the rates, I've been able to double my gross revenue from the time of purchase. However, even with the increased rates, the demand for my units continues to outpace my supply. I have no previous experience in construction, so the idea of an expansion project overwhelms me, but I don't plan to let that stop me.
The property adjacent to mine is a large tract of vacant land. I'd like to approach the owner about purchasing the property from him, but I don't want the potential price or terms of the deal to be influenced by the fact that I own the storage next door. Is there a way I can find out how much he wants for the land and make an offer on the property without disclosing my identity? Would this strategy even be appropriate, or am I overthinking the whole thing?
Thanks again for all of your help!
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Host: Victor Menasce
email: podcast@victorjm.com
AMA - Should I Hire A Buyer Agent?
Today’s question comes from Jonathan who asks.
Your recent episode on the NAR lawsuit settlement left me with a question. From what I understand, NAR recently settled the class action lawsuit and buyer’s will be required to hire and pay their own buyer agents. You mentioned in that episode that the practice is now matching what was already the practice in commercial real estate. So when you are buying commercial real estate, do you actually hire buyer representation? As a commercial investor, should I pay for buyer representation?
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Host: Victor Menasce
email: podcast@victorjm.com
Squatting Versus Trespassing
Where is the line between break and enter, theft, and a tenant being evicted unlawfully?
Well, that is now being finally clarified in a couple of states. If someone breaks into your house and starts stealing your stuff, then you would do the natural thing and call the police to have the crooks arrested. But when the police show up, if those people claim to be a tenant, the police will probably tell the owner to have them evicted through civil litigation in the court system. In many states, this process can take upwards of years.
The state of Florida just passed legislation that restores property rights to property owners.
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Host: Victor Menasce
email: podcast@victorjm.com
Where Does The Water Go?
On today’s show we are talking about flooding. When it rains you have to think about where the water is going to go.
We’ve all heard the advice about how to always pitch your tent in a high location and to avoid the low spots where water will flow in the event of a rainstorm.
The same advice applies to construction. Except the construction itself can be a source of problems when it comes to storm water management.
Storm water management is governed by a set of principles, that is to say the laws of physics and often further constrained by regulations from multiple jurisdictions.
The basic principle behind most of the regulations is that Mother Nature was perfect in her design of our planet and that it is the alterations caused by humans that are responsible for messing things up.
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Host: Victor Menasce
email: podcast@victorjm.com
Casual Conversation with George Ross
On today's show we are jumping into the realm of Artificial Intelligence and George is answer a question that was composed by an AI bot.
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Host: Victor Menasce
email: podcast@victorjm.com
Energy And The Economy with Dr. Chris Martenson
Today's show is an extract from a longer talk given by Dr. Chris Martenson at the Ottawa Real Estate Investors Organization on March 13. Chris is the founder of Peak Prosperity. You will find lots of amazing content on a wide spectrum of topics at the Peak Prosperity website. To learn more and to connect with Chris visit peakprosperity.com
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Host: Victor Menasce
email: podcast@victorjm.com
Changing Demand For Student Housing
On today’s show we are talking about how education is changing, and in particular what that means for owners of student housing.
When you make an investment in student housing you are making a few fundamental assumptions.
- The enrolment in the institution will grow or at least remain constant.
- Students will still need to come to campus to attend classes.
- Foreign students entering the country will generally need more student housing than local students who might be able to live at home with parents.
- The demand for student housing will grow over time, or at least remain constant. If the demand drops, then you can expect vacancy to increase in the local market and for rental rates to drop. Students will make housing decisions based on lowest price.
When you make an investment in student housing you want these assumptions to hold true for longer than your forecast holding period for your investment.
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Host: Victor Menasce
email: podcast@victorjm.com
Interpreting The Latest Fed Guidance
On today’s show we are making sense out of the latest results from the Federal Open Market Committee’s two day meeting which concluded on Wednesday of this week with J Powell’s press conference on Wednesday afternoon. I watched the press conference in its entirety.
Chair Powell didn’t field too many difficult questions.
There were a couple of things in the press conference that I thought were noteworthy. The mainstream media keep talking about 3 rate cuts this year. But I didn’t hear that in his talk. What I did pay attention to was his target for interest rates in the next month, and by the end of the year.
NAR Class Action Lawsuit Settlement Implications
Earlier this week, the National Association of Realtors announced a settlement agreement to the class action lawsuit that was widely publicized late last year. On today's show we are talking about the implications of the settlement. Sadly, the likely result is that it will harm the very people the lawsuit was designed to help. For commercial transactions, there is no impact. The practices in residential real estate are being brought into line with what is already the practice in the world of commercial. Commercial real estate puts the burden of risk on the buyer and this is understood.
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What's in Store for 24
On today's show we are looking at what investors are predicting for the coming year. Data from Colliers and CBRE form the basis of today's show. The CBRE investor sentiment survey indicates what investors think will happen this coming year.
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Host: Victor Menasce
email: podcast@victorjm.com
Why Is Japan's Stock Market Rising During Recession?
On today’s show we are talking about market fundamentals. Our listeners are real estate investors. But that means they’re investors first. The investor mindset is based on fundamentals.
When we assign value to a corporation, that translates into a share price if that stock is publicly traded. All other things being equal, the stock will trade at a multiple of net earnings.
The conventional wisdom is that in times of economic boom, net earnings tend to swell and the share price of the company will increase to reflect the higher earnings of the company.
In times of recession, revenues fall, and earnings usually take an even bigger hit. The share price of those publicly traded companies get punished accordingly.
So we have a strange situation going on in Japan at the moment. The economy is clearly in recession, and has been for some time.
We have a Japanese stock market index that is up by 30% over the past six months during a time when the economy is limping along.
There’s nothing like a good old Wall Street style share buyback to wallpaper over weak corporate earnings.
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Host: Victor Menasce
email: podcast@victorjm.com
Design Sensibility with Jon and Kevin Ratner
Jon and Kevin Ratner form part of the Forest City legacy and are currently leading a new venture called The Max Collaborative. They've taken their decades of experience running a public real estate development company and translated into unique product offerings with energy efficiency, design and sustainability as underpinning qualities.
To connect with Jon and Kevin, visit themaxcollaborative.com
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Host: Victor Menasce
email: podcast@victorjm.com
Cost Segregation with Erik Oliver
Erik Oliver is based in Salt Lake City where he specializes in Cost Segregation. On today's show we are talking about how to handle the uncertainty of changing legislation in the realm of depreciation. To connect with Erik and to learn more visit costsegauthority.com
You can also reach out the team directly at Cost Segregation Authority
Scott Santiago
Phone Number: 385-853-7011
ssantiago@costsegauthority.com
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Host: Victor Menasce
email: podcast@victorjm.com
Short Term Rental News
On today's show we are talking about some news items on short term rentals.
1 ) New policy at AirBnb governing the use of security cameras
2) European Union passes new rules for data sharing between the platforms and regulatory bodies
3) Some interesting short term rental stats from the European Union
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Host: Victor Menasce
email: podcast@victorjm.com
AMA - Is Corporate Ownership of Homes A Good Thing?
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?
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Host: Victor Menasce
email: podcast@victorjm.com
Brand Affinity in Investments
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.
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Host: Victor Menasce
email: podcast@victorjm.com
Optimizing Energy Code Compliance
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.
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Host: Victor Menasce
email: podcast@victorjm.com
Why Storage Is So Sticky
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.
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Host: Victor Menasce
email: podcast@victorjm.com
Spec Home Design with Matias Daroch
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
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Host: Victor Menasce
email: podcast@victorjm.com
Deep Due Diligence with Marc Halpern
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 Marc@PartTimeInvestors.com
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Host: Victor Menasce
email: podcast@victorjm.com
AMA - Different types of RV Parks
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?
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Host: Victor Menasce
email: podcast@victorjm.com
National Real Estate Inventory Is Rising
The statistics are clear. Inventory is rising. But what does it mean? On today's show we are looking past the numbers alone.
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Host: Victor Menasce
email: podcast@victorjm.com
Don't Just Read The Headline
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.
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Host: Victor Menasce
email: podcast@victorjm.com
Do Exchange Traded Funds Distort Value?
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.
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Host: Victor Menasce
email: podcast@victorjm.com
Silver Lining To A Slower Market
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.
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Host: Victor Menasce
email: podcast@victorjm.com
RE Professional Zachary Jensen.
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
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Host: Victor Menasce
email: podcast@victorjm.com
Pasha Esfandiary
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/
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Host: Victor Menasce
email: podcast@victorjm.com
BOM - Scary Smart by Mo Gawdat
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.
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Host: Victor Menasce
email: podcast@victorjm.com
Why Is There Softness In Storage?
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?
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Host: Victor Menasce
email: podcast@victorjm.com
Hedonics Gone Wild
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.
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Host: Victor Menasce
email: podcast@victorjm.com
Hedonism in Washington
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.
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Host: Victor Menasce
email: podcast@victorjm.com