The Real Estate Espresso Podcast

Latest Episodes:

When The Neighbors Object Jul 26, 2021

Show notes

On today’s show we’re talking about your property, and where your rights end.

If you happen to own a factory that borders on the Hudson River and you dump millions of gallons of toxic material in the river, most people would agree that those affected should have the right to make an argument that they’re being negatively impacted and you should stop. That’s pretty clear. In fact, the government should step in for violating environmental regulations. That too is pretty clear.

But if you build a house in a neighbourhood, should the neighbours who did not make an investment in your property get to dictate what you do on your property?

In an effort to prevent neighbours from arguing with each other over aesthetics, cities have created rules in the zoning code. These are the same rules that the neighbours who live next door and across the street have to live by. It becomes a difficult argument that a rule was good enough for you, but is not appropriate for the neighbour.

The grey zone is when variances are involved.

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Host: Victor Menasce

email: podcast@victorjm.com

Mark Khuri Jul 25, 2021

Show notes

Mark Khuri is based in Bend Oregon where his company SMK Capital invests in projects all over the country. On today's show we take the journey from active investor to fund manager.

You can learn more and connect with Mark through his website at SMKcap.com

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Host: Victor Menasce

email: podcast@victorjm.com

Brent Bowers Jul 24, 2021

Show notes

Brent Bowers specializes in land. But not just any land. Listen to today's podcast for a unique strategy on how to make land into a cash flowing asset.

To learn more, you can reach out to Brent at thelandsharks.com

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Host: Victor Menasce

email: podcast@victorjm.com

The Gold Rush Is Over Jul 23, 2021

Show notes

On today’s show we’re talking about the gold rush that happens in virtually every new market innovation. We saw it with the railway, the automobile, radio, television, personal computers, the internet, and now in Cannabis.

When a new market is developing there is a major opportunity for new entrants to grab market share in a growing market. When you layer growth upon growth you have the potential for hyper growth. These market conditions have attracted entrepreneurs since the beginning of time.

If you’re a student of history, you will see a familiar pattern. There is a rush to entry, with a brief period of healthy growth, followed by market saturation, followed by consolidation as weaker players are forced to close. Only after the maturation of the second wave of growth in the market do companies experience sustainable business.

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Host: Victor Menasce

email: podcast@victorjm.com

Cheating With Leasing Incentives Jul 22, 2021

Show notes

On today’s show we’re talking about the importance of digging deep in due diligence.

Investors are no strangers to maximizing value. Sometimes value creation happens through genuine means and other times it happens through manipulation of the system.

We all know that there is a link between income and value. The math is pretty simple. You take the net income after expenses and divide that number by the market cap rate for comparable properties to calculate the value. Pretty simple and pretty bullet proof objective method for calculating the value.

But what happens when properties are difficult to lease?

But then the landlord offers a leasing incentive. Maybe they offer 13 months for the price of 12. Maybe they make the first month free and then offer to start the lease in month two. But still the landlord took the money up front as a security deposit and then transferred the funds from the security deposit account to the rental account. From the market perspective, it still looks like a 12 month lease. The tenant got an 8% discount on their rent for the year. But it doesn’t appear anywhere. The accounting records for the business look like the landlord got full rent for a 12 month lease. The 13th month appears off the record.

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Host: Victor Menasce

email: podcast@victorjm.com

Unrealistic Zoning Density Expectations Jul 21, 2021

Show notes

I’m continually presented with projects that propose density that is close to or just at the threshold of the allowable density for a particular property use type.

But in the real world, these levels of density are rarely achieved. When you layer the real constraints on a project, the density achieved is often much less. The promise of high density creates unrealistic expectations in the eyes of the land owner. They think their property is worth far more than its true development value.

On today’s show we are going to talk about the top 5 constraints that chip away at density.

Parking
Green Space Amenities
Roads, fire department access and multiple points of entry
Height Restrictions
Storm Water management

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Host: Victor Menasce

email: podcast@victorjm.com

Inflation As A Core Part of Your Investment Strategy Jul 20, 2021

Show notes

On today’s show we are talking about inflation and the hidden tax that can impact investors.

If you have been listening to this podcast for a while, you will know that we don’t adhere to the typical mainstream media definition of inflation. The correct definition of inflation is the inflation of the money supply. All the extra currency in circulation has the effect of pushing up prices as businesses and individuals bid up the price of goods and services.

Inflation is often compared with a hidden tax.

Governments prefer this hidden tax because when you go to the grocery store and pay $6 for a head of lettuce, most people blame the grocery store and not the government for the high price of lettuce. It’s politically more palatable.

After all, if the government wrote you a check you would probably celebrate, rather than criticize the government for printing more money.

But apart from the hidden tax, there is a very real tax. The real tax is capital gains tax on the sale of assets. When the value of your property goes up because of inflation, and then you are subsequently taxed on the capital gain, there is a double taxation of sorts happening.

A discussion of investment returns cannot be complete unless you take tax consequences into account.

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Host: Victor Menasce

Email: podcast@victorjm.com

When The News is Not News Jul 19, 2021

Show notes

In many cases, the news is not new enough to be news, and it’s not old enough to be history. It falls into a no-mans land of random useless data.

I’m struck by how often the news media are out of step with what is happening in the world of real estate investing.

The front page report is simply out of step with what is actually happening in the market. Unless there is an ambulance chase involved, the news media are not up to the minute. In fact, they're often weeks behind.

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Host: Victor Menasce

email: podcast@victorjm.com

Justine Picard Jul 18, 2021

Show notes

Justine Picard comes to us from Gatineau, Quebec. She joined our development team a few months ago in an internship role. On today's show we're talking about what it means to intern in a business, and what types of engagements work and those that don't.

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Host: Victor Menasce

Email: podcast@victorjm.com

George Ross Jul 17, 2021

Show notes

On today's show we have repeat guest George Ross. George has been a real estate lawyer at the highest levels. We are talking about whether to take the gamble and acquire in today's market, versus being patient and waiting for better pricing.

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Host: Victor Menasce

email: podcast@victorjm.com

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