The Real Estate Espresso Podcast

Latest Episodes:

2,000 Episodes and a Thought Experiment Jul 06, 2023

Show notes

Today is a milestone for the Real Estate Espresso Podcast. This is the 2000th episode of the podcast. It seems like yesterday that the podcast was a concept, an idea. I had been experimenting with various ways of communicating and had been a guest on numerous shows. Publishing a show for 2,000 days in a row has definitely been a project.

In fact, of the 2M podcasts out there, 90% quit after 3 episodes, and another 90% of the remainder quit by episode 20. So to help celebrate 2,000 episodes, we’re going to be holding a little contest. A few lucky winners will be getting some podcast SWAG. We’re talking coffee mugs. I realize that some of you like a tall coffee and not just an espresso. So in about the time it takes you drink your morning coffee, you can share those few minutes with the real estate espresso podcast. To enter the content, send an email to podcast@victorjm.com and put the number 2,000 in the subject line. The drawing will be held on July 14. To all of those who enter, best of luck and thank you for celebrating 2,000 episodes with me.

On today’s show, I’m going to take you through a little bit of a thought experiment. We know what has happened as a result of the rapid rise in interest rates and how it has affected the housing market. We know that supply of homes for sale has declined as a result of the so-called lock in effect.

If interest rates fall, will we see a deluge of houses come onto the market for sale?

--------------

Host: Victor Menasce

email: podcast@victorjm.com

AMA - Should I Buy That Brownfield Site? Jul 05, 2023

Show notes

Today’s question comes from Matt who asks:

I have a property that we are considering buying that is in a hot neighborhood. The rents in the area are $2,500 a month for a 2BR apartment which is strong for the city as a whole. The city is a rustbelt city that has seen a lot of growth

The subject property was an industrial site that likely has contamination. The phase 1 indicates there is lead in the ground and there are likely petroleum products in the ground as well.

The seller is pushing for a closing of 30 days after completion of the environmental phase 2.

The existing building is about 19,000 SF of structure above ground and we could ultimately build about 27 apartments in the existing structure. The land is $500,000 and it would likely require about $500,000 in environmental remediation costs. It’s likely that the site would qualify for 100% of the site remediation to be government funded.

What do you think about this deal?

--------

Host: Victor Menasce

email: podcast@victorjm.com

The Acute Labor Shortage In Construction Jul 04, 2023

Show notes

On today show, we are looking at the market for construction workers. With the rising interest rates, there has been a significant reduction in the number of construction jobs underway compared with the same period Last year.

It’s no secret that there is a shortage of workers in construction jobs.

According to a report in yesterday’s Wall Street Journal, many builders in Florida are experiencing an acute shortage of workers.

-------------

Host: Victor Menasce

email: podcast@victorjm.com

Why Is Unemployment So Low? Jul 03, 2023

Show notes

On this podcast we keep trying to make sense out of this economy. It is confusing and there are numerous contradictory signals.

On today’s show we are taking a look at why there appears to be a labor shortage. We keep hearing about the so-called labor shortage and politicians and the Fed keep pointing to the historically low unemployment rate.

So where did all the people go? There was not a labor shortage before the pandemic, although we did have historically low unemployment even back in 2019.

--------

Host: Victor Menasce

email: podcast@victorjm.com

Stewart Heath Jul 02, 2023

Show notes

Stewart Heath is based in the Huntsville market where he invests in stabilized commercial assets that have a customer facing component. On today's show we are talking about the opportunity that is coming in the world of commercial real estate, as well as some of the risks and pitfalls. Stewart can be found at harvardgracecapital.com

------------

Host: Victor Menasce

email: podcast@victorjm.com

Book Of The Month - The Wim Hof Method Jul 01, 2023

Show notes

Our book this month is The Wim Hof Method: Activate Your Full Human Potential, by Wim Hof.

Wim is famous. He has broken more than 26 world records. Some people call him the Ice Man.

In this book, Wim takes the reader through his personal life journey of accidental discovery.

I’ve taken several training courses on the Wim Hof method. Each and every time I come away with a deep sense of calm that is unlike any other.

A key element of the Wim Hof method is exposure to cold. I know what you’re thinking. That sounds uncomfortable.

The second major component of the Wim Hof method is breathing. I’m not talking about the routine shallow breathing that we are accustomed to.

Wim teaches deep breathing, utilizing our full lung capacity. The cycles of deep breathing will leave you feeling lightheaded and cause tingling in your hands and feet. But there is nothing wrong. You are merely pushing out the carbon dioxide from the blood stream and maximizing the oxygen saturation.

The combination of these two unlocks capability within the body that most never knew was there.

Definitely immerse yourself in the Wim Hof Method.

Why Are Adult Kids Still Living At Home? Jun 30, 2023

Show notes

On today’s show we’re talking about household formation and why some adult children are living at home for so much longer than in generations past.

It’s not secret that home affordability is a problem for many who are newly independent young adults.

There are a few paths:

1) After kids leave home they get a job, the best job you can get, and hope to save money from left over after they’ve paid rent, the car, student loan, and the latest meal from door dash.

2) Get a high earning job, rent a modest apartment and save up their pennies until they can afford a downpayment for a home.

3) Get a loan for the downpayment from their parents

4) Save most of their salary while living at home until they can afford a downpayment.

It seems like an increasing proportion of young adults are relying on methods #3 and #4.

A Project That Went Nowhere So Far Jun 29, 2023

Show notes

On today’s show we are talking about a project that so far has gone nowhere. It’s not a large project, and we did not have anything invested in it besides some time.

The subject property was part of a development in the province of Quebec.

The owners of the land had got the property zoned for residential and developed the half of the land and sold half of the project for single family homes. Half of the road was built and homes were built on portion that was developed. It’s not entirely clear why the other half was not build. Maybe the owner ran out of funds. Who knows. The other half of the property which comprises about 18 acres was left undeveloped. Naturally, the property taxes on residential land are higher than the taxes on agricultural land.

The owner of the property was tired of paying the higher property taxes on the land that was basically doing nothing. So he downzoned the undeveloped 18 acre portion back to agricultural.

The next generation were left owning this land and they recognized that the value of the land would be enhanced considerably if it were zoned residential. So we entered into a purchase agreement with the current owners that was contingent on getting the land rezoned back to residential.

Are You Confused? Jun 28, 2023

Show notes

Norway raised their interest rates by 50 basis points and announced another raise in August.

Switzerland raise their benchmark rate by 25 basis points.

The UK raised it’s benchmark rate by 50 basis points up to 5%.

China lowered its rate because they see ahead what is going on in the real economy.

If you’re confused by all of this seemingly contradictory data, you’re probably not alone. It is confusing.

The root of the uncertainty and the apparent contradictions can be found by looking deeper at the data. There is one thing that is the master resource that cannot fool anybody about what is happening in the economy. The economy and energy are inextricably intertwined. If the real economy is growing, then so too is energy consumption. If the economy is shrinking, then energy demand will fall. ----------

Host: Victor Menasce

email: podcast@victorjm.com

Travel is Changing Jun 27, 2023

Show notes

On today’s show we are taking a look at what is happening in the world of travel and tourism. These changes could have an impact on the world of hospitality as a result, and I believe an impact to where you might choose to invest.

The so-called revenge travel wave from the pandemic is largely over. Travel patterns are starting to normalize. They’re not reverting to pre-pandemic, since you can never truly go backwards. You can only go forward to a new normal.

Here are a few things I’m observing in the world of travel.

There is pent up demand for cruise ship travel. Back in 2019 there were 29.7 million cruise ship passengers. That went to essentially zero during the pandemic. Even in the second quarter of 2023, cruise lines were rebuilding, and getting back to pre-pandemic levels. Carnival Cruise line reported their latest financial results for 2Q2023. They reported record bookings and record deposits for future sailings. How will this affect the world of travel and tourism?

Our TOPPODCAST Picks

Follow Us

Stay Connected

The Real Estate Espresso Podcast

Related Podcasts

Links

Stay Connected