The Real Estate Espresso Podcast

Latest Episodes:

Deflationary Examples From The Real Economy Apr 27, 2023

Show notes

On yesterday's show we talked about how there are signs of monetary deflation present in our economy. We discussed the definition of what is inflation and what is deflation?

Today's show is the second in a two-part series on monetary deflation. On today’s show we are looking at specific examples of how money can disappear from the money supply.

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Host: Victor Menasce

email: podcast@victorjm.com

Could We Experience Deflation? Apr 26, 2023

Show notes

On today show, we are looking again at the macro environment. So much of what is happening in the world of real estate is being dominated by the macro environment, which is why we keep coming back that. It’s specifically on today show we are looking at a definition for inflation, in order to understand deflation. There is a case to be made for deflation. Today’s show is the first of a two part series on deflation.

Now I know what you’re thinking. How can we be experiencing deflation when all of the statistics are pointing to inflation. In fact the Federal Reserve and central banks around the world have been raising interest rates in order to fight inflation.

You’re wondering - Has Victor totally lost his mind?

We have become accustomed to thinking of inflation, as meeting the consumer price index. The Bureau of labour in statistics has several metrics for price indices. There is the consumer price index which includes the more volatile food and fuel components. Then there is core, CPI, which excludes These more volatile components. However, in almost every case throughout history, it can be shown that these measures are not the inflation per se, but rather the symptom of inflation.

The actual inflation is the inflation of the money supply. When you have more currency bidding for a fixed amount of goods and services in an economy, that excess money will eventually bid up the price of those goods and services.

So that’s inflation. But what about deflation? If consumer price inflation is the result of inflation of the money supply, then would it make sense that consumer price deflation would be the result of a decrease in the money supply?

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Host: Victor Menasce

email: podcast@victorjm.com

Expect Moving Goal Posts Apr 25, 2023

Show notes

On today’s show we are talking about how cities are getting pressure to perform better when it comes to turning around zoning and building applications.

Many cities have earned a terrible reputation for being bureaucratic nightmares when it comes to getting a zoning application approved, or a site plan application, and in some cases a building application approved.

Most cities have recognized that a new zoning application is complex and requires a multi-disciplinary approach. For that reason, most cities offer an informal pre-consultation meeting. This gives a developer the opportunity to get feedback from all of the city departments in a single one hour meeting. There will be the planning department, utilities, fire department, police department, streets department, the parks department, maybe even the local school district.

Having gone through countless of these meetings I can tell you that they are helpful compared with no pre-consultation, but they fall far short of what is ultimately needed. Cities have a job to do and they can’t spend a ton of time in meetings with developers on projects that are still at the concept stage. Who knows if these projects will ever see the light of day?

I can tell you also from first hand experience, that cities often suffer from indecision that looks like moving goal posts from the perspective of the developer. In fact, I can’t think of a single application before a city that has not experienced moving goal posts. By moving goal posts, what I mean is that you get feedback from the planning department telling you what it will take to get your application approved. You hold your round-table pre-consultation meeting with all of the city department. Then you submit the application and the feedback from the city is full of surprises.

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Host: Victor Menasce

email: podcast@victorjm.com

Social Engineering In Real Estate Apr 24, 2023

Show notes

Some days it seems like we live in an upside down world.

Today’s show fits in the category of “You can’t make this stuff up.” It’s just too bizarre for words, and it would be even funny if it were not for the fact that this is real.

Charlie Munger, who is Warren Buffet’s business partner is famous for saying “show me the incentive and I’ll show you the outcome”.

The latest bit of insanity coming out of the Biden White House is an idea whereby the government will charge a premium on borrowers with a good credit score in order to make it easier for those with a poor credit score to qualify for a loan.

You heard me correctly. This is the equivalent of taking points away from an A student and giving extra marks to a C student, to make things more fair.

The details are that a borrower with a credit score of 740 or higher will pay an additional fee ontheir residential mortgage.

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Host: Victor Menasce

email: podcast@victorjm.com

George Ross on Deadlocks Apr 23, 2023

Show notes

George is back in NY after spending the winter in Florida. On today's show we are delving into a topic that is explained briefly in a couple of pages in George's book on negotiation. His book is based on the course syllabus from when he taught negotiation at the law school at NYU for more than 20 years.

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Host: Victor Menasce

email: podcast@victorjm.com

Jeff Schechter Apr 22, 2023

Show notes

Jeff Schechter is now based in Nashville after building a sizeable turnkey rental portfolio in Indianapolis. On today's show we are talking about how the macro conditions are affecting turnkey rental assets and how it might be time to pivot into other opportunities. To connect with Jeff, visit highreturnrealestate.com

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Host: Victor Menasce

email: podcast@victorjm.com

Top 5 Underwriting Mistakes Apr 21, 2023

Show notes

On today’s show we're looking at some of the most common mistakes that I see multifamily investors make in their underwriting. I'm presented with opportunities for multifamily projects of all shapes and sizes across many markets on a daily and weekly basis. Sometimes this analysis is performed by lenders, sometimes by mortgage brokers, and sometimes by the principals themselves.

So here we go I'm going to give you the top five mistakes I see most often when looking at a multifamily apartment pro forma. ------------------- Host: Victor Menasce

email: podcast@victorjm.com

Connecting The Dots Apr 20, 2023

Show notes

On today’s show we are taking a look at some economic metrics that are not getting much airplay or analysis in the mainstream media. But we real estate investors need to pay attention.

We continue to have both government and Fed officials talking about how the economy is strong and resilient and that we may experience a mild recession later this year. This most recent statement is the closest we have seen Fed officials acknowledge the reality of our economic malaise.

On today’s show we are going to look under the covers in the economy to see what is really going on.

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Host: Victor Menasce

email: podcast@victorjm.com

Why Is The Fed On A Suicide Mission? Apr 19, 2023

Show notes

On today’s show we are going back to 1910. These were the origins of the formation of the Federal Reserve during a secretive meeting on Jekyll Island off the coast of Georgia. Leading up to the fateful meetings that took place over nine days, there had been a series of runs on banks and financial panics in 1873, 1884, 1893 and 1907. These banking panics over the preceding decades had caused the outright failure of 1748 banks. The Federal Reserve Act of 1913 was a direct outcome of this clandestine meeting on Jekyll Island. The Federal Reserve was created to protect the banking system. It is owned by the member banks, not the US government. The Federal Reserve Banks that make up the Fed are not banks either in the traditional sense. I have been thinking, long and hard about whether the Federal Reserve has been mistaken in their interest-rate policy. After all, it is a bold statement for some Podcaster located in Canada to declare in unequivocal terms that the Federal Reserve with its hundreds of PhD‘s is utterly and completely incompetent. All it takes is a few minutes of the most basic Internet research to realize that the banking system in the United States is backed into a corner from which it is virtually impossible to see away out. That is, unless the Federal Reserve makes a choice between raising interest rates to fight inflation or lowering interest rates to save the banking system. I I am completely convinced that this is the choice facing the Federal Reserve. ------------ Host: Victor Menasce email: podcast@victorjm.com

Crime Repels Investment Apr 18, 2023

Show notes

On today’s show we’re asking about how crime and lawlessness is bad for business, bad for rent, and bad for real estate investment.

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Host: Victor Menasce

email: podcast@victorjm.com