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Real Estate Espresso

Real Estate Espresso

By Victor Menasce

Your morning shot of what's new in the world of real estate investing. Daily real estate investment outlook from investor, syndicator, developer and author Victor J. Menasce, so that you can compress timeframes as a real estate investor or developer. Weekday shows are 5 minutes of high energy, high impact awesomeness. The weekend edition consists of interviews with notable guests including Robert Kiyosaki, Robert Helms, Peter Schiff, Chris Martenson, Mark Victor Hansen, George Ross, Ed Griffin, Dr. Doug Duncan, and many more.
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Solar Farms with Travis Godon

Real Estate Espresso Sep 19, 2021

00:00
10:33
AMA - Buying The Neighbor's Land

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

Mar 28, 202407:01
AMA - Should I Hire A Buyer Agent?

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

Mar 27, 202405:33
Squatting Versus Trespassing

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

Mar 26, 202405:40
Where Does The Water Go?

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

Mar 25, 202405:30
Casual Conversation with George Ross

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

Mar 24, 202422:53
Energy And The Economy with Dr. Chris Martenson

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

Mar 23, 202443:03
Changing Demand For Student Housing

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.

  1. The enrolment in the institution will grow or at least remain constant. 
  2. Students will still need to come to campus to attend classes.
  3. Foreign students entering the country will generally need more student housing than local students who might be able to live at home with parents. 
  4. 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

Mar 22, 202405:50
Interpreting The Latest Fed Guidance

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. 

Mar 21, 202405:43
NAR Class Action Lawsuit Settlement Implications

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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Mar 20, 202406:10
What's in Store for 24

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

Mar 19, 202405:42
Why Is Japan's Stock Market Rising During Recession?

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

Mar 18, 202405:59
Design Sensibility with Jon and Kevin Ratner

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

Mar 17, 202421:09
Cost Segregation with Erik Oliver
Mar 16, 202412:09
Short Term Rental News

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

Mar 15, 202405:26
AMA - Is Corporate Ownership of Homes A Good Thing?

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

Mar 14, 202406:59
Brand Affinity in Investments

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

Mar 13, 202405:37
Optimizing Energy Code Compliance

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.

  1. The prescriptive method
  2. 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

Mar 12, 202405:45
Why Storage Is So Sticky

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

Mar 11, 202405:30
Spec Home Design with Matias Daroch

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

Mar 10, 202415:47
Deep Due Diligence with Marc Halpern

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

Mar 09, 202417:30
AMA - Different types of RV Parks

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

Mar 08, 202406:50
National Real Estate Inventory Is Rising

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

Mar 07, 202405:13
Don't Just Read The Headline

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

Mar 06, 202405:26
Do Exchange Traded Funds Distort Value?

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

Mar 05, 202406:37
Silver Lining To A Slower Market

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

Mar 04, 202405:46
RE Professional Zachary Jensen.

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


Mar 03, 202414:36
Pasha Esfandiary

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

Mar 02, 202413:45
BOM - Scary Smart by Mo Gawdat

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

Mar 01, 202407:23
Why Is There Softness In Storage?

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

Feb 29, 202405:32
Hedonics Gone Wild

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

Feb 28, 202405:19
Hedonism in Washington

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

Feb 27, 202406:00
AMA - Surprise Appraisal

AMA - Surprise Appraisal

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?"

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 26, 202405:48
Florida Infill Rentals with Brock Holliman

Florida Infill Rentals with Brock Holliman

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.

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 25, 202414:06
Real Estate Tokens with Michael Flight

Real Estate Tokens with Michael Flight

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

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 24, 202412:21
The All You Can Eat Buffet

The All You Can Eat Buffet

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.

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 23, 202405:14
The State of Retail

The State of Retail

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. 

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 22, 202405:53
Will Sora Benefit Humanity?

Will Sora Benefit Humanity?

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.

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 21, 202404:51
Price's Law

Price's Law

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. 

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 20, 202405:39
Why Is The Internet Broken?

Why Is The Internet Broken?

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. 

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 19, 202405:04
Uncovering Alterior Motives with Chris Miles

Uncovering Alterior Motives with Chris Miles

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.

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 18, 202413:49
Shopping Center Investing with Michael Flight

Shopping Center Investing with Michael Flight

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.

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 17, 202414:27
The Best Investment Structure

The Best Investment Structure

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 

  1. the team
  2. The specific sub market 
  3. The deal itself. 

Due diligence on all three of these elements takes a lot of effort to do it  thoroughly. 

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 16, 202405:04
The Taking (I Mean Donating) of Land

The Taking (I Mean Donating) of Land

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. 

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 15, 202405:05
Making Sense of Conflicting Economic Data

Making Sense of Conflicting Economic Data

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. 

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 14, 202407:30
I Went To The Dark Side

I Went To The Dark Side

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. 

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 13, 202406:23
Juan got Deported

Juan got Deported

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. 

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 12, 202405:02
Bronson Hill

Bronson Hill

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.

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 11, 202414:52
Special Guest George Ross

Special Guest George Ross

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.

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 10, 202413:16
Are The Olympics The Pinnacle?

Are The Olympics The Pinnacle?

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.

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Host: Victor Menasce

email: podcast@victorjm.com

Feb 09, 202405:34
AMA - Empty Offices Means No Jobs

AMA - Empty Offices Means No Jobs

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.

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Host: Victor Menasce

Feb 08, 202406:32