The Real Estate Espresso Podcast

On today’s show we are taking a short walk through the history books. As some of you know, I’ve been building apartment buildings in Philadelphia for much of the 2010’s. We assembled numerous properties over the span of several years. Many of these homes in North Philadelphia were built in the early 1900’s. These homes were very traditional townhouses that were made of structural brick. The party walls were supporting walls for the homes on either side of the walls. If I compare construction of similar vintage in other cities, the method of construction was vastly different in Philadelphia, and other cities.-------------**Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are talking about closing a transaction. States have different methods for recording a transaction on title. Some states use lawyers to close transactions. These are most commonly referred to as attorney closing states where a lawyer is required in addition to the title company. There are a total of 18 states that require attorneys to close. The remaining states can close transactions strictly with title companies. Some provinces in Canada that used to be exclusively lawyer close provinces also offer the option of closing with title companies. But these are less common, simply because that has not been the traditional practice. Simple residential transactions involve a buyer, a seller, a price and are usually based on standard real estate board contract. Everything looks familiar to the title agent and it’s a paint by numbers exercise. Drafting the closing statement is very standard and the title agent is following a prescribed formula for completing the transaction. In order to make things simple and repeatable many title companies create rule books for their title agents to follow. This restricted path is meant to eliminate possibility for errors and is designed to enhance the overall quality of the customer experience. But these rule books don’t contemplate the more complex structures associated with a commercial transaction and the complexity of a multi-party transaction with many moving parts and then further involving one or more qualified intermediaries who are also imposing their requirements on the closing process. You will often hear that what is being requested cannot be done. It violates the rule book at the title company. Of course the client is not going to be able to convince the tile agent that they need to change their process. In that instance, the only viable solution in our experience is to get your real estate lawyer, who hopefully is well versed in the complexity of the transaction to provide the direction to the title agent on how to conduct the transaction. The lawyer will tell them exactly the same thing that you did. But the title company will listen to the lawyer, when they won’t listen to you. This is one of those cases where there are so many people involved in closing the transaction that the most important role for you is to assign a quarterback for the entire transaction. That person’s role is to get people communicating who don’t think they need to talk to each other. Everyone is sitting in their corner with their rule book waiting for everyone else to meet the criterial stipulated in their rule book and nothing moves. ----------------**Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today's show we are examining the best way to ask a question for maximum benefit. This is a real life first hand example.--------------**Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today's show we are speculating on the impact of the shrinking Federal Government. What will it mean? The superficial headlines are overlooking the real changes that I believe are coming. Do your financial models take any of this into account?----------------**Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

Waikiki is NYC based where he specializes in helping family offices with making institutional quality investments in projects around the US. On today's show we are talking about how investor appetites and investor mandates have changed in the past 24 months. What is in demand today?To connect with Waikiki, visithttps://creconstructionpartners.com/ or reach out to him on LinkedIn.----------------**Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

John Caldwell is a digital marketing expert who practices his craft from multiple locations around the world. On today's show we are talking about how marketing has changed in the new era of artificial intelligence.Our firm is working directly with Jon as a strategist with our own in-house implementation team (full disclosure).To connect with Jon and to learn more, visithttps://www.3victor.io/-------------**Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are talking about buying the dip. This is when the market is inefficient and people over-react to a piece of news. These events are clear when they happen, and yet they still do occur regardless.These market over-reactions happen with striking regularity. We see it also in foreign currency exchange. The Canadian dollar fell to a 22 year low only a few weeks ago based on the assumption that tariffs imposed by the White House would crush the Canadian economy. The Canadian dollar has recovered about 2 cents in the last few days, but is still 4 cents below where it was in the fall. We know that there is opportunity in many real estate markets. But if you can find a 4%, or a 6% discount on the buy side by speculating on the added leverage of the foreign exchange, this can be an opportunity to make an outsized return on your investment.We have Canadian investors who invest in our US projects and we have US investors who invest in our Canadian projects. Foreign exchange doesn’t really enter into the thesis for any of these investments. To be clear, there is a difference between investing and speculating. When you make an investment in a new apartment building, you’re probably basing your investment on the fundamentals of the local submarket, the product being delivered to meet a market need, and the strength of the team operating the project. Foreign exchange in the future is unknown. It could result in a foreign exchange gain or a foreign exchange loss 5 or 7 years down the road when you might be planning to exit the investment. But if you have the dollar drop 5% in a very short time period, and the investment thesis was making sense, the risk just tipped in favor of the investor. The investment is now 5% cheaper, all other things being equal when you take the change in exchange rate into account. ----------------**Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are talking about water sustainability. This is one of those topics that often gets misunderstood. In particular, it’s a source of a lot of misinformation.  We’re developing a project in Colorado Springs and at the city council meeting, several members of the public stood up in opposition to the project and were using the argument that somehow our project would be depriving people downstream of our project from water in the lower Arkansas River.  Cities like Colorado Springs which lives in a fairly arid location relies on water that comes from the rocky mountains. Some of the water comes from the Colorado River, and some from the Arkansas River as well as various other assets. In some cases, the city has engaged in water exchanges. These are purchases of water assets in one location and then trading those assets for use upstream.  In the city council meeting, one citizen after another spoke in opposition to the project using water as the argument.  As someone who is developing the project, it was painful to listen to people who are so misinformed and are clearly passionate about what they believe.  After the council meeting was over, I spoke with one of the citizens who had several minutes at the microphone in front of council.  I asked him if he knew about the various water utilities that exist in the area. He said that he did not. I asked him if he knew where Shriever Air Force Base got their water. He said, no.  I asked him if he knew what waste water recovery was all about. He said no.  This is where water beliefs are encumbered with the history of abuse of fresh water. Back in the day when there was seemingly endless water, there was no thought to conservation of a scarce resource. It only became an issue when the shortages appeared.  On today’s show we’re going to talk about the cost of creating pure drinking water out of waste water. It sounds gross, and it sounds like it should not work. But the same technology that is used to generate drinking water from ocean salt water can be used in a waste water treatment plant. 

On today’s show we are taking a look at the near-shoring trend and how it has maybe been upended in the past couple of weeks since the inauguration of the new President.  On the minds of most business leaders in manufacturing are some important questions. If the global landscape has changed, where should you establish manufacturing capacity geographically?  The globalization of the past few decades has proven to be a geopolitical failure. The assumption was that if economies were sufficiently intertwined, that it would be a protracted period of world peace and collaboration.  We now have fractured geopolitical alliances. ---------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)  

On today’s show we are taking a look at what might be one of the most significant counter punches in the effort to dominate the global economy.  There are many ways in which countries make foreign investments. The US having the privilege of maintaining the world reserve currency has seen much of the world’s debt denominated in US dollars. But the US has rarely been an investor in foreign companies, nor in foreign countries. This stands in stark contrast to other countries like Saudi Arabia, China, Norway, UAE, Kuwait, and dozens of other countries that have sovereign wealth funds.  The US does deliver substantial foreign aid in the form of grants. But the US is rarely an investor in foreign projects. On the other hand, China has carved out substantial foreign influence by funding foreign infrastructure projects.  Today the US announced a new sovereign wealth fund that will be designed to compete with the like of China when it comes to foreign investment.  The fact is that when $900B dollars are going to be allocated and invested over a period of time, that represents a massive opportunity for savvy investors who are paying attention to ride the coat tails of that investment.  ------------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)   iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)   Website: [www.victorjm.com](http://www.victorjm.com)   LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)   YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)   Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)   Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)  **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)   Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)   Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)