The Real Estate Espresso Podcast

Latest Episodes:

Is This A Bear Trap Or A Bull Trap? Dec 15, 2023

Show notes

On today’s show we’re going to the dark side to listen to Jim Cramer from CNBC and try to learn why the DOW skyrocketed over 500 points in the wake of yesterday’s interest rate announcement by J Powell.

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Host: Victor Menasce

email: podcast@victorjm.com

The CPI and Interest Rates Dec 13, 2023

Show notes

On today’s show we are talking about the latest CPI data announcement. This data is important going into the final FOMC meeting for the year, where the Fed held interest rates steady again for the third meeting in a row.

The month over month data showed an increase of 0.1% in consumer prices compared with a month over month increase of 0% in the month of October.

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Host: Victor Menasce

email: podcast@victorjm.com

Global Weaknesses Dec 12, 2023

Show notes

On today’s show we are talking about geopolitical stability and the vulnerability of nations. The idea behind globalization was that by creating economic interdependency, the world would become a more peaceful place. Many wars have an economic underpinning. But if both sides in a conflict would be harmed by economic disruption, the incentive for confrontation should be reduced.

It turns out that every nation has a weakness when it comes to globalization. No country is an island unto itself that can be fully self sustaining.

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Host: Victor Menasce

email: podcast@victorjm.com

Rent Concessions Abound Dec 11, 2023

Show notes

If you’ve been listening to the podcast for a while, you will know that I’m a proponent of the laws of supply and demand. If you ignore the laws of supply and demand, you do so at your peril.

It’s always been the case that a new building will go through a process of offering leasing incentives for some of the first tenants and then remove the incentives at certain occupancy thresholds, and eventually raise starting rents as the building approaches stabilization. That’s a pretty standard process and applies equally to both residential and commercial buildings.

According to a recent study published by Costar, new properties in some over supplied markets are offering deeper and deeper leasing incentives in order to attract clients. Last year was a 40 year record year with new supply of over 950,000 multi family apartments entering the market. Some the hottest sunbelt markets can only be described as over supplied. It will take time for those markets to absorb the extra units.

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Host: Victor Menasce

email: podcast@victorjm.com

Digital Marketing with Ed Mathews Dec 10, 2023

Show notes

Ed Mathews is based in central Connecticut where he runs Clark Street Capital. On today's show we are talking about what forms of marketing are effective in today's environment. To connect with Ed, visit Clark Street Capital on all the social media platforms or check out his podcast at Real Estate Underground.

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host: Victor Menasce

email: podcast@victorjm.com

SBA Financing with Ryan Smith Dec 09, 2023

Show notes

Ryan Smith is based in San Diego California where he specializes in SBA financing for business across the US. On today's show we are talking about the nuances of the different SBA programs. You can connect with Ryan at thinkSBA.com

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Host: Victor Menasce

email: podcast@victorjm.com

Why Are Loan Rates Falling? Dec 08, 2023

Show notes

On today’s show we are talking about why we are seeing long term interest rates falling, even though short term rates have held steady since mid summer.

We can see clearly what has happened in the market. Long term rates went up from June to October, peaking at nearly 5% for the 10 year treasury. The rates have dropped by nearly a full percentage point since the end of October. The yield curve had nearly flattened after being inverted for much of the past 18 months. Now the yield curve is deeply inverted again.

As of publication of today’s episode the yield for the 10 year was 4.12%

The rates for permanent financing are indexed to the 10 year treasury in the US, and the commercial bond rate in Canada. Canadian CMB bond rates are even lower at 3.66% for the 5 year and 3.72% for the 10 year.

It’s tempting to simply rejoice at the lower borrowing costs and ride off into the sunset with new commercial loans at respectable rates. But life’s not that simple. The real question is why are rates falling so rapidly after rising sharply in the weeks leading up to the middle of October?

What is the market telling us?

What is the bond market telling us about the economy?

What is the bond market telling us about inflation?

What is the bond market telling us about the future trajectory of interest rates?

What is the bond market telling us about the future price of the medium term treasuries, and is there anything we can learn from that?

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Host: Victor Menasce

email: podcast@victorjm.com

AMA - Insane Electric Utility Requirements Dec 07, 2023

Show notes

Today’s question comes from Omar.

I’m working the design of a new building and the electric utility is forcing me to change the design of the electric meters from a wiring closet inside the hallway of a residential building to the building’s exterior. This is going to require the running of conduit for several hundred units from the transformer vault to the exterior of the building and then from the outside back into a wiring chase. I’m estimating the cost of this additional electrical work at nearly $4000 per unit. I’m facing a project cost impact more than $800,000. What can I do to save cost? Having a few hundred electric meters on the exterior of the building is going to consume a lot of area and be very ugly. Their constraints just seem insane. Do I just have to meet the utility’s requirements or are there alternatives?

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Host: Victor Menasce

email: podcast@victorjm.com

AMA - Boutique Hotel in Costa Rica Dec 06, 2023

Show notes

Today's question comes from Richard who asks: "I’m considering an investment in a boutique hotel vacation property in Costa Rica with 18 rooms on the beach. For investors looking beyond their local markets, what considerations and challenges should they be mindful of when venturing into international real estate investments?"

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Host: Victor Menasce

email: podcast@victorjm.com

Tax Advantages Through Depreciation with CPA Mike Pine Dec 06, 2023

Show notes

Today's show is a very special segment with Dallas based CPA Mike Pine. We're talking about depreciation and how it can be advantageous for investors of all types.

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Host: Victor Menasce

email: podcast@victorjm.com

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