The Real Estate Espresso Podcast

Latest Episodes:

Pay Attention - Lending Policy Changes Jul 22, 2025

Show notes

On today’s show we are talking about changes in lending policies and how these are affecting commercial real estate loans.

But first. I’d like to give the listeners to the podcast the opportunity to be among the first to get visibility of an exciting new project that will form part of our industrial portfolio. The project is located on a 21 acre parcel in Bradenton Florida. This is an area that has an acute shortage of property that is even zoned for industrial uses. The project is not open yet for investment. This is an opportunity for interested parties to learn more about the project. If you are interested in learning more, send an email to victor@victorjm.com and put the word industrial in the subject line. We will get some information over to you shortly. That’s victor@victorjm.com. This is not a solicitation for investment, and any investment would be by prospectus only, limited to accredited investors residing in the US in compliance with SEC regulations.

On today’s show we are talking about changes in lending policies and how these are affecting commercial real estate loans.

When a lender or an agency issues and update to a lending policy , it is worth paying attention to the details of the new policy. Chances are, it will either make it easier to get the loan you need or perhaps make it impossible.

We have seen both situations in recent months. We’re going to give several examples on today’s show.

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Time Value of Money Jul 21, 2025

Show notes

On today’s show we are talking about math. Yes, I know, not everyone likes math. We are going to be talking about the concept behind the time value of money and the different measures that are used to describe the time value of money.

So when we are talking about time value of money, we can talk about the present value, the future value, and rates of return as all related by the same types of mathematical operations.

A lot of investors perform a very simple return on investment calculation. The math is easy, but it doesn’t take into account the time value of money. In that sense, it’s not the proper calculation to be performing. We use the internal rate of return calculation instead. That’s also true of pretty much all institutional investors as well. So on today’s show we are going to dissect the concept of time value of money calculations.

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Historic Properties with Zach Westerfield Jul 20, 2025

Show notes

Zach Westerfield is based in Forsyth Georgia where he specializes in renovating historic properties. The economics of these projects are impossible without the inclusion of either Federal or State tax credits that are confined to specific historic districts and properties that meet the historic designation criteria. This is a fascinating segment that is often overlooked. To connect with Zach, visit southvp.com

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Mineral Rights Investing with Jace Graham Jul 19, 2025

Show notes

Jace Graham is with Rising Phoenix Capital where he invests in oil and gas leases. This is the real estate end of the oil industry which is entirely based on royalties.

To learn more, visit https://www.laplatapeakfund.com/

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Can You Make Sense of Macro Economic Data? Jul 18, 2025

Show notes

I’d like to give the listeners to the podcast the opportunity to be among the first to get visibility of an exciting new project that will form part of our industrial portfolio. The project is located on a 21 acre parcel in Bradenton Florida. This is an area that has an acute shortage of property that is even zoned for industrial uses. The project is not open yet for investment. This is an opportunity for interested parties to learn more about the project. If you are interested in learning more, send an email to victor@victorjm.com and put the word industrial in the subject line. We will get some information over to you shortly. That’s victor@victorjm.com. This is not a solicitation for investment, and any investment would be by prospectus only, limited to accredited investors residing in the US in compliance with SEC regulations.

As always, I believe that the hyper local market situation always outweighs the macro market conditions. That doesn’t mean you should ignore the macro environment entirely. One of the principal effects of the macro environment is on the cost of capital.

On today’s show we are figuring out how to interpret the current market conditions, or at least we’re going to try.

I frequently have conversations with investors who are trying to forecast the future of interest rates and what that would mean for their investment thesis.

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A Generation of Delinquent Teenagers Jul 18, 2025

Show notes

On today’s show we are talking about how some trade measures make no sense whatsoever.

If you have children who grow into adults, you know that if those children become overly dependent on their parents, they ultimately fail to launch. These are the children in their 30’s and 40’s still living at home with their parents and having their parents subsidize their lifestyle. There is no incentive for them to figure out how to become an adult because they don’t have to.

When countries overly coddle their industries under the guise of protecting domestic jobs, they are doing the same thing as coddling an adult child and not sending them out into the world to prosper.

When an industry is protected, it’s the same as letting your teenager hang out in your basement for the next 20 years. They’re content with the status quo, but they’re not really achieving great things. This brings us to the walled gardens of protectionist economics. If you want to see what protectionism results in, look at the Ontario egg farmers and their quota system.

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Where Is The Dry Powder? Jul 16, 2025

Show notes

We keep hearing the refrain that there’s billions of dollars sitting on the sidelines for commercial real estate. Well if that’s true, then why is it so hard to raise capital in the current environment? Every investor and every developer I speak with is saying that investors are sitting on their wallets.

There is a substantial amount of dry powder available for commercial real estate investment across various firms, with London-based investment data company Preqin putting the number at more than $350 billion. Much of it is held by the largest private equity and alternative investment firms, including Blackstone, Brookfield Asset Management, Ares Management, KKR, Carlyle Group, Apollo Global Management, TPG Capital and Starwood Capital Group.

Much of the dry powder was raised three or more years ago and has been left unspent. Funds often have set periods during which they must spend money they've taken in from investors, and that deadline is approaching with many companies showing new signs of activity.

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Student Housing Headwinds Jul 15, 2025

Show notes

If you’ve been listening to this show for a while you will know that I’m a proponent of the law of supply and demand. To me, the law of supply and demand is a little like gravity. If you choose to try and fool gravity, you’re probably going to end up on the losing end of that bargain. It’s the same with supply and demand.

On today’s show we are looking at three forms of downward pressure being exerted in the student housing arena. I’m going to make the simplifying assumption that over the next year or two, the amount of supply of student housing is not going to change dramatically. The real issue is on the demand side.

This is a segment that quite frankly has been under pressure from simple demographics. Birth rates are down and the number of students enrolling is down.

There are a number of new borrowing limits that affect government sponsored student loans in the latest tax legislation that was signed on July 4.

During times of falling domestic demand for a university education, many schools try to make up the shortfall with foreign students. But here too we are seeing falling numbers of international students coming to the US for university.

This is another headwind for student housing. Layer on top of these headwinds the fact that some student housing providers had financed their properties at much lower interest rates than today’s market rates. These properties will face substantially higher debt service costs when it comes time to refinance their existing debt.

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More Tax Credits In Big Beautiful Bill Jul 14, 2025

Show notes

On today’s show we are talking about access to US Federal low income housing tax credits. This is something that frankly has not made headlines.

The Low-Income Housing Tax Credit (LIHTC) program is the primary federal program for encouraging the development and preservation of affordable rental housing in the United States. Here's how bonding capacity links to LIHTC and how recent legislation has changed the requirements.

The Act permanently reduces the threshold for private activity bond financing from 50% to 25% of the aggregate basis of the building and land costs. They effectively doubled the impact of bonding capacity and therefore they doubled the low income housing tax credits that are possible for the same amount of bonding.

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Tax Savings by Gifting Assets with Ross Slutsky Jul 13, 2025

Show notes

Ross Slutsky is a commercial appraiser based in Orlando Florida. On today's show we are talking about valuation methods that can result in significant tax savings, particularly if there are future events that can make the realization of that value contingent on those events.

You can learn more by visiting pcecompanies.com or emailing Ross directly at rslutsky@pcecompanies.com.

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