The Real Estate Espresso Podcast

Latest Episodes:

Small Condos Are Not Selling Sep 14, 2023

Show notes

On today’s show, we are talking about some of the dynamics that are showing up in the small investor segment of the real estate market. We are starting to see anecdotal boots on the ground evidence of properties being offered for sale that in my opinion are experiencing negative cash flow. In many major cities a small but significant percentage of condominiums, between 20-25% of new construction condos are owned by smaller individual investors who in turn put these properties into the rental market. Overwhelmingly these smaller condo units are investor owned. You often see the smaller lower cost units in condo buildings being purchased by investors, typically in preconstruction, prior to the building even breaking ground. In my home city these smaller units were really designed to maximize the revenue per square foot. These are small units! Many are between 400SF-500SF. These studio apartments are often very difficult to furnish.

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Host: Victor Menasce

email: podcast@victorjm.com

Exempt Securities Primer Sep 13, 2023

Show notes

On today's show we are going to talk about the world of exempt market securities. But before we do, then let me make it clear. I am not a lawyer, nor am I a securities lawyer. The purpose of today’s show is not to provide legal advice, but merely to arm you with perhaps enough knowledge to ask questions of your legal advisory team.

The reason we are even covering this today is because I get frequent questions from both newer and seasoned investors on the various types of securities offerings, and why one might be different than another.

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Host: Victor Menasce

email: podcast@victorjm.com

Secular Versus Cyclical Sep 12, 2023

Show notes

On today’s show we are talking about the difference between two types of inflation. Economists have terminology for inflation that is used to describe the nature of the inflation.

The first is cyclical inflation. This type of inflation is caused by a short term economic disruption, for example a supply shock. Once that supply shortage is resolved, prices tend to normalize and the inflation essentially disappears. Some economists use the term transitory to describe a cyclical inflation.

The second type of inflation is called secular. This is a deeper and more systemic type of inflation that tends to persist because it is being driven by multiple factors including the so-called wage price spiral.

Once you have secular inflation, it is much more difficult to eliminate from the economy.

It appears as though we have a cyclical inflation happening right now. The supply shock that occurred during the pandemic has subsided. Inventories are bloated and prices are falling as suppliers compete more aggressively for customer’s business.

Secular inflation is when inflation expectations become anchored. The factors influencing inflation become systemic and entrenched.

On today’s show I’m going to make a case that even though we are in a disinflationary period, and parts of the world are experiencing deflation, the disinflation we are experiencing is a result of a cyclical downturn against the backdrop of a longer secular cycle.

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Host: Victor Menasce

email: podcast@victorjm.com

Is This A Healthy Housing Market? Sep 11, 2023

Show notes

On today's show we’re taking a look at the big picture of the housing market in both the United States and Canada and asking the simple question. Is this a healthy housing market? If so, then why and if not, why not?

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Host: Victor Menasce

email: podcast@victorjm.com

Ross Hamilton Sep 10, 2023

Show notes

Ross Hamilton is the founder of Connected Investor, which was sold to First American Title a little over a year ago. On today's show we are talking about some of the technology innovations that are coming to the world of real estate transactions. To connect with Ross, you can email him directly at ross@successcap.com. His charity is savinghomes.org which is doing amazing work to help people out of distress situations.

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Host: Victor Menasce

email: podcast@victorjm.com

Distressed Notes with Scott Carson Sep 09, 2023

Show notes

Scott Carson is based in Austin Texas where he specializes in purchasing and repairing distressed loans from banks and commercial lenders. Scott is a real experr in the field and he shares some insights as to what is happening in the market today. To learn more or to connect with Scott, visit weclosenotes.com or talkwithscottcarson.com.

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Host: Victor Menasce

email: podcast@victorjm.com

The Tail Wagging The Dog Sep 08, 2023

Show notes

With tax deadlines coming up and only a few months remaining in the year, we are getting a lot of tax related questions at our development company Y Street Capital. These questions are often coming from prospective investors who are looking at our investment offerings.

As always, we don’t offer tax advice. Most importantly, we advise our investors to never let the tax tail wag the investment dog. What that means is that we believe investors should make investments in sound investments first and foremost. If there is a tax benefit on top of the sound investment, then that’s the icing on the cake. But if the focus is entirely on the tax, then the investor runs the risk of putting icing on a mud pie. We don’t want that.

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Host: Victor Menasce

email: podcast@victorjm.com

AMA - Is Canada's Real Estate Heading For Trouble? Sep 07, 2023

Show notes

Today's question comes from David who writes:

Thank you for all the education you provide daily! It’s clear and concise and relevant and much appreciated.

In talking with a Canadian associate this weekend I was informed that Canada doesn’t offer 30 year fixed financing like in the States. I never knew this!

In talking with another Canadian today we were discussing that in his lifetime there hasn’t been such a quick and continuous rise of interest rates. This appears to be new territory for Canada.

With the housing stats discussed, time on market increasing, and quantity of houses on the market decreasing, this is confusing. I understand why time on market would be increasing but can’t get my head around why quantity of housing on market is decreasing.

Wouldn’t folks with a mortgage rate that is potentially resetting in the near future be in a position of having to get rid of these mortgages whose monthly payment is about to reset significantly higher?

Seems like a big onslaught of distressed property is headed down the pike in Canada.

What other factors do you see at play here that help to make sense of what appears to be conflicting numbers of time on market vs. quantity of houses on market.

Thinking Two Moves Ahead Sep 06, 2023

Show notes

On today’s show, we are putting some of the global financial risks on your radar that is not getting any air play in the news. If you have been a listener to this podcast for a while, it should be clear that we are in the throes of a global economic downturn. However, the manifestation of that is not identical on every single continent. There are three different predominant themes in the economy in North America, Europe, and Asia.

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Host: Victor Menasce

email: podcast@victorjm.com

AMA - Build To Rent Sep 04, 2023

Show notes

This question comes from Ravi who writes:

I have been a long time listener of your prodcast. In fact I won a signed book a few years ago. I have a lot of respect for you and was hoping to get your opinion regarding the build to rent investment thesis. I have considered investing through a company called Southern Impression homes. I was not sure if you had any experience with them. They build single family, duplexes, and quads in the Florida area and also manage them. The concept seems compelling and appears that private equity companies are now involved. Perhaps, my question may have broad interest for your listeners. Once again thank you all of your great work.

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Host: Victor Menasce

email: podcast@victorjm.com

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