The Real Estate Espresso Podcast

Latest Episodes:

Translating Vision Into Operations Nov 04, 2023

Show notes

On today’s show we are talking about translating vision into execution.

There are many companies that have an impressive company tag line. But when you ask employees and stakeholders about it, there is usually an awkward pause. What comes after that is often a disjointed statement.

At our development company, we spent a lot of time thinking and refining what our business is about. We are real estate developers. All developers have a calculator that works pretty much the same. In order to generate a profit, you need income to be higher than expenses. You want to build the best product for the lowest possible cost. All of the usual things that maximize profit. For many developers, that means squeezing the subcontractors.

When I tour newly completed projects in the market, I’m stunned at how poorly things are built. I’m astounded at the low quality of finishes. But most of all, these brand new apartments in supposedly luxury buildings are truly awful. I see living rooms with columns that make the space virtually impossible to furnish. I see bedrooms that are so small you can’t fit anything but a bed and a single night table. You’re thinking of hosting friends for dinner? Maybe have dinner in a restaurant because there isn’t really a space to entertain. That’s what I see when I look at many brand new projects.

So back to our company vision.

We thought long and hard. Our company exists to build communities that people feel compelled to call home.

So what does that really mean? How does that translate into what we actually do? Does it mean sacrificing profitability?

This vision is more than just a vision, I consider it a guiding principle.

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Host: Victor Menasce

email: podcast@victorjm.com

Another Form of Counterparty Risk Nov 02, 2023

Show notes

On today’s show we are talking about signs of stress in the construction industry.

It’s no secret that many developers have put projects on hold as a result of higher interest rates.

When we talk about counter party risk, that term conjures up an image for the GFC that started in 2008. This is the result of an asset being held by one party constituting a liability for another party. If the liability can’t be met, then the asset on the books may not be properly valued and may need to be written down. We saw the cascade of dominos across the entire banking system. The Federal Reserve recognized the linkages between different counterparties and has attempted to alter the structure of the banking system by encouraging banks to borrow from the Fed, or by putting excess reserves on deposit with the Fed. That way if the Fed is the counterparty in most cases, the systemic risk to the banking system would be reduced. Sounds good in theory.

On today’s show we are going to look at another form of counterparty risk that is rarely considered. It was brought to our attention in the past few days. Our own due diligence processes are being strengthened as a result of what we have learned.

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Host: Victor Menasce

email: podcast@victorjm.com

BOM - Dare to Lead by Brene Brown Nov 01, 2023

Show notes

Brené Brown, renowned for her research on vulnerability, courage, and empathy, delves into the heart of leadership in her book "Dare to Lead." In this captivating and insightful read, Brown explores the intersection of vulnerability and leadership, offering a refreshing perspective on what it means to be a daring and effective leader. Brene Brown is someone who I’ve been following for years. Her work on the emotions that drive behaviour has been groundbreaking. I would describe her work as being in the shadows, in involving topics that are rarely discussed in the context of leadership. At the core of this is shame. Leaders are just people and people often grapple with shame at their imperfections.

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Host: Victor Menasce

email: podcast@victorjm.com

Exactly What is Communism? Oct 31, 2023

Show notes

On today’s show we are talking about what is driving the economy.

There was a time when I thought the fear over communism taking hold in the west was overblown. Yes, communism had taken hold in China, the Soviet Union, and Eastern Europe. But we saw how that turned out. Communism is a recipe for economic stagnation. I have visited parts of Eastern Europe, the Ukraine, and mainland China. I’ve seen the remnants of communist economic policies and how it killed innovation and entrepreneurship. I’ve seen the drab grey concrete buildings with virtually no interior finishes. These cement caverns feel more like a war bunker than a home.

People who rail about communism are out of touch. Don’t they know that the Berlin Wall fell in 1989? Don’t they know that China opened up their economy to more free market forces? Have they not visited Shanghai and seen the advances that free market forces have brought to China?

We don’t need to worry about government dominating the economy here in North America. After all, we hear that consumer spending influences 70% of GDP. That statistic is quoted regularly.

So when you look at all layers of government, government spending in the US stood at 38% of GDP. In Canada, government spending at all levels is at 41% of GDP.

Communist China reports they are at 31% of GDP for all levels of government. Russia is at 36% of GDP.

Exactly what is communism?

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Host: Victor Menasce

email: podcast@victorjm.com

Utilities Submetering With Kelly Koontz Oct 31, 2023

Show notes

Kelly Koontz is based in Seattle Washington where he is a principal at Submetering Solutions. The company specializes in all forms of submetering for the major utilities like water, gas, electric and more. Some of the newer technology meters don't require cutting pipes and merely wrap around the pipes.

To connect with Kelly or to learn more, visit submetersolutions.com/espresso and you will be able to get in touch directly.

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Host: Victor Menasce

email: podcast@victorjm.com

Central Bank Balance Sheets Oct 30, 2023

Show notes

The Fed is losing money. Now you might say, how can the Fed lose money? Isn’t the Fed the very definition of money? Can’t they just print more? Well I guess sure they can. But printing money only works as long as confidence remains in the currency. It works until it doesn’t. When it doesn’t, then it’s incredibly difficult to restore that confidence.

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Host: Victor Menasce

email: podcast@victorjm.com

Creative Financing with Chris Prefontaine Oct 29, 2023

Show notes

Chris Prefontaine is based in Rhode Island where he invests in the local and nearby states. The strategies he teaches apply nationwide. To connect or to learn more, visit smartrealestatecoach.com. To get a copy of the free book, visit whickedsmartbooks.com/victor1 and they will mail a physical book to you at no cost.

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Host: Victor Menasce

email: podcast@victorjm.com

The Difference Between Water and Moisture Oct 27, 2023

Show notes

On today’s show we are talking about the technology in some of the newest materials for new construction.

It’s increasingly common to have building plans examiners and building inspectors reject materials for use in a new construction project. This often comes down to an issue of liability.

Gone are the days of stick building a frame and slapping on some siding. There is an entire building science and modern buildings have a lot of technology built into the structure, the cladding, the windows, in fact the entire building envelope.

Buildings can degrade with moisture and multiple defences agains moisture penetration are key to having a long life building.

That means designing layers to keep moisture out, and then making sure that moisture has a way to get out if it does happen to penetrate the first layer. The other source of moisture is the result of condensation. This happens when there is a difference in temperature between inside and outside. If its colder outside, then moisture is likely to be on the outside. If it’s colder inside, then moisture is likely to condense on the inside. Both can be a problem.

The latest innovation is something called an air barrier. These new technologies have created confusion with contractors and many of them don’t understand the difference.

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Host: Victor Menasce

email: podcast@victorjm.com

How Are Episodes Decided Upon Oct 26, 2023

Show notes

When I speak with listeners of the podcast, I’ve been asked on numerous occasions how I come up with topics for the daily show. More specifically, how do I decide what angle to explore on a particular topic.

I get this question often, so I decided to dedicate a few minutes to sharing how the background work happens in coming up with a new episode. When deciding the content for the show, I’m looking for a variety of topics that are going to be interesting to my listening audience.

That means a mix of topics that are more evergreen in nature, as well as topics that are a tie-in to the news. An evergreen topic is not tied to a particular point in time. For example, I did an episode on water rights and how they differ from one jurisdiction to another.

Tie-ins are related to what’s happening now. For example, if the Fed makes an announcement on interest rates, then I’m going to report on that in real time. Talking about it a week later makes no sense.

Real estate investing is affected by many factors, ranging from the macro-economy to the micro.

Then there are specific vertical asset classes each with their own dynamics.

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Host: Victor Menasce

email: podcast@victorjm.com

REAP The Rewards Oct 25, 2023

Show notes

On today’s show we are talking about ways in which you could get a solar system almost for free. That’s right, you heard me correctly.

Under the inflation reduction act, the US Federal government offers a tax credit of up to 30% of the cost of a solar power generation system being installed. When talking solar power, I’m talking about commercial systems that would serve an entire business like a warehouse. But there are additional incentives that can be layered on top of the investment tax credits.

There is a program of grants administered by the US department of agriculture call REAP which is an acronym short for Rural Energy For America Program.

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Host: Victor Menasce

email: podcast@victorjm.com

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