The Real Estate Espresso Podcast

Latest Episodes:

AMA - A Good Houston Location? Oct 14, 2021

Show notes

Today's question comes from Chris in Florida who asks,

I’m considering a property South of Houston for an industrial equipment storage facility. The address was located in the email. I have a good understanding of what that segment of the market needs, but have limited knowledge of the Houston area.

Chris, this is a great question.

The specific location that you’ve highlighted is not a good location in my opinion. It’s too far South West of the city and is at the edge of the urban developed area. It’s not on the way to anything. It’s about a 15 minute drive from the nearest freeway which connects Houston and Galveston.

In my opinion, owners of industrial equipment will not want to add a half hour round trip to the daily movement of equipment to be that far away. The additional cost of fuel will erase any savings that might be possible with the lower cost real estate at the extreme edge of the urban boundary.

It’s true that there is no zoning regulation in the Houston area. That means that you can literally build anything anywhere. But the lack of government restriction doesn’t mean that your product will be economically viable in any location.

Prices Are Up Up And Away Oct 13, 2021

Show notes

On today’s show we’re talking about the acute shortages that have been created by the massive shift in our economy over the past year.

I hope to convince you on today’s show that the price inflation we are experiencing is not temporary.

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

Host: Victor Menasce

email: podcast@victorjm.com

Reliable or Cheap, Pick One Oct 12, 2021

Show notes

Globalization has made it possible to squeeze inventories down to nothing. Just-in-time delivery means these hyper-efficient, hyper-optimized supply chains can deliver the promise of owning no inventory and still meeting customer demand.

Offshoring was the name of the game. First, Japan was the manufacturing location of choice. When Japan was too expensive, companies moved production to China. When China was too expensive, production moved to the Philippines and Vietnam.

All of this worked, until it didn’t.

The supply chain disruptions have shown just how many links there are in that supply chain and how many opportunities exist for delay and outright breakdown.

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

Host: Victor Menasce

email: podcast@victorjm.com

Is Senior Housing A Good Investment? Oct 11, 2021

Show notes

Today we are talking about the state of assisted living across the nation.

The mere mention of the terms senior housing, and assisted living generates a reaction from most investors. The natural reaction is to say something like “Oh senior housing is a hot area. There’s a lot of money to be made in assisted living.” That’s the urban wisdom.

Beneath the surface, the reality is more complex. In most primary markets, the entire assisted living industry had built ahead of the demand with the expectation that demographics and the aging baby boomer population would catch up and bring additional demand in the coming decade.

There are not too many industries where you can increase supply a full decade ahead of demand. That can be an effective strategy for grabbing market share. It can also be a recipe for financial failure.

On today's show we segment senior housing into specific vertical specialties and see which ones are working and which ones are not.

Stacy Rossetti Oct 10, 2021

Show notes

Stacy Rossetti travels the country with her family in an RV and acquires distressed storage facilities in secondary and tertiary markets. She does it the old fashioned way, over a cup of coffee with the owners. These tired owners invariably just want out of the day to day of running a small business.

There are so many ways to invest in real estate. Lifestyle design can be at the heart of your personal investing philosophy. To connect with Stacy and to learn more visit StacyRosetti.com

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

host: Victor Menasce

email: podcast@victorjm.com

Live From The Quarterly Offsite Oct 09, 2021

Show notes

Every calendar quarter we take an entire day with the leadership team offsite to work on the business. This is an opportunity to pause and take stock of where we are and make course corrections if necessary. On today's show we're reviewing a snapshot of the past 90 days and getting input from members of the leadership team.

Do you take the time to implement a culture of continuous improvement?

The Land Lottery Oct 08, 2021

Show notes

On today’s show we are talking about the land lottery. Now I’m an investor at heart and I’m not a fan of gambling.

When we think of a lottery, there is a low cost to play the game and the potential payoff is huge. Naturally the odds of winning are low. But emotionally the payoff is so large that many people still choose to play the game. The expectation value is high enough that people see value in spending a few dollars even if statistics says they should not.

Ok so we know what a lottery is.

What does this to do with land? The value of land is directly a function of what you can do with it, combined with the demand for the finished product in that location.

Land can be worth only a few thousand dollars an acre if all you can do is grow grass on it. But it can be worth a few thousand dollars per square foot if it is in the highest demand areas of New York, London or Paris.

Land is land, but you can transform land into that winning lottery ticket through the zoning and entitlement process. But unlike a real lottery, you don’t put any investment in a piece of land that has a low chance of being improved.

Imagine if you could take a look at all the lottery tickets and discard the ones you know are not winning tickets. Now you are left with the ones that will at least win something.

I don’t know if I’m over stretching this analogy. Maybe I am.

Working Across Time Zones Oct 07, 2021

Show notes

On today’s show we are talking about adapting work habits when you travel.

This month I’m spending the entire month away from home and will be working from the beautiful ancient city of Rome.

Working on a different time zone means that I have the mornings to myself and am able to get those focus tasks done without interruption while everyone is still sleeping in North America. Meetings don’t start before 3PM for me which is 9AM east coast time. The most difficult thing to manage is the time zone to the west coast, where we have at most one hour of overlap. 6PM in Europe is 9AM in California and Washington.

If I don’t establish boundaries, then the temptation exists to work at all hours of the day.

Why Did Evergrande Fail? Oct 06, 2021

Show notes

You might be wondering how the Evergrande debacle in China happened. I’ve been to China and observed first hand how commercial construction is broadly undertaken.

Once you understand what I have seen first hand, it’s little surprise that there are issues.

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

Host: Victor Menasce

email: podcast@victorjm.com

The Wrong Orbit Oct 05, 2021

Show notes

On today’s show we’re talking about getting trapped in the wrong orbit.

Now I realize that when I use the word wrong, it sounds like I’m making something right and something else wrong. What that really means is getting trapped in an orbit that’s different from what you might have intended.

This type of thing happens all the time in all kinds of industries. It stems from having imprecise goals. That lack of clarity can be a trap.

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

Host: Victor Menasce

email: podcast@victorjm.com

Our TOPPODCAST Picks

Follow Us

Stay Connected

The Real Estate Espresso Podcast

Related Podcasts

Links

Stay Connected