The Real Estate Espresso Podcast

Scott Langham is with Whitestone Wealth Management, based in San Antonio Texas. On today's show we are talking about the different tax deferral strategies that are possible under the US Tax code. The 721 is a variant or derivative of the 1031 exchange that offers some unique advantages. Scott explains some of the nuances that could play a role in effective tax and estate planning. To connect with Scott, call 210-341-1515 or visit whitestonewm.com.--------------**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)  

Joseph Root is based in Chicago where he is a principal at East Superior Real Estate Partners. This multi-generational family business invests in Chicago an other markets in the midwest. On today's show we are talking about the dynamics and merits of midwestern markets along with the complexity of vintage buildings. To connect with Joseph you can find him on LinkedIn at https://www.linkedin.com/in/rootjoseph/ or at his company at esrepartners.com.-------------**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)  

Today is another AMA episode (Ask Me Anything). Our question comes from Steve who asks: " What is the next potential technology that could dramatically change or revolutionize construction?"-------------**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 the evolution of digital marketing. The problem is the digital marketing has changed dramatically in the past 12 months and chances are if you are a business owner and you are still in business you are probably still marketing the same way that you did 12 months ago perhaps 24 months ago maybe even five years ago. Google has changed the way that it presents search results. It used to be the case that organic search was the name of the game when it comes to search. Appearing at the top of the list on the first page of Google search results would virtually guarantee you a dominant market position. That was later push lower down in the priority sequence behind paid advertising. Today the top of the first page of search results consist of what is called a snippet. A snippet is a summary that is often an AI generated from the top search results. If you were one of the businesses that ranked pretty well in the past, chances are you have now been pushed down onto page 2 or page 3, perhaps even further down in the search results. You’re probably spending more money on Google Ads and getting inferior results. As if that was not bad enough many users are increasingly relying on AI chat bots for their search results and no longer even using Google for search altogether. For example, there is a new copilot plug-in to the Google Chrome browser that will effectively make Microsoft copilot your default search engine. Google's Gemini suffers from the same problems by the way.--------------**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 a hypothesis as to why long bond rates are falling, with the corresponding benefit to interest rates for investors. ---------------**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)  

To learn more, visit https://ystreetcapital.com or visit our investor portal at https://ystreetcapital.invportal.com/loginOn today’s show we are talking about how the active adult segment is one of the most important new segments in residential real estate. When we think about residential real estate, we need to think about demographics. All people tend to go through a housing life cycle. They start out living at home with their parents. Then they get their first place on their when they move out for the first time. This is usually a rental apartment, maybe student housing, maybe with a roommate. This is the start of the expansion phase. It’s more space than just the childhood bedroom. Then eventually they may buy a house if and when they start a family. Then maybe a larger house to accommodate a growing family. The empty nesters will live in a big house for a while with a lot of empty rooms and eventually realize that it’s too much house and too much property. It’s time to downsize. This can take the shape of several different decisions, depending on when they make that decision. They might choose a smaller home. Downsizing involves several steps as well. This might culminate in a senior home, or moving in with adult children. But the intermediate steps, before senior housing are particularly important for real estate investors to understand. At some point people may choose something that is lower maintenance. That could take the form of a condo, or a rental apartment. The process of downsizing involves getting rid of a few decades of accumulated belongings. It’s a process that involves a sense of loss. But the problem with all these choices is that these moves disrupt the social fabric, especially if the move involves a change of city. Adult children have moved out and are launching their own lives. The parents feel an acute sense of loneliness. The contact with their children is vastly diminished. Contact with friends is reduced, especially if they move city. Our western society faces a crisis of loneliness and this is even more acute for people in their middle aged years. Nobody aspires to move into an old folks home. So senior housing is seen as a necessity more than a choice. Moreover, senior housing is extremely expensive compared with any other form of housing.This is where a relatively new category of product comes into play, called active adult. This is an age restricted product with an emphasis on class A finishes, an amenities rich offering, and a strong sense of community. The community has an activities director who organizes all of the social activities, whether it is a fitness class in the indoor swimming pool, or a pickleball tournament, evening social events, all manner of activities which emphasize an active lifestyle but also cement social connections. Active adult is positioned in between a market rate apartment and independent living. ----------------**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 quantifying the impact of lumber tariffs on new construction. The fact is, the market has already priced in the cost of the tariffs. We're breaking down the contribution of lumber, the tariff, as a percentage of the overall construction. As a result, I expect the impact to be at most 4%, and in fact much less. This assumes that lumber prices rise across the board to match the price of the tariff burdened lumber which only accounts for 25-30% of US lumber supply. --------------**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)  

Adiel Gorel is based in Northern California where he is focused on investing across the sun belt of the US. On today's show we are talking about long term investment strategy that is resilient in the face of economic cycles. To connect with Adiel, visit icgre.com where you will find numerous resources. ---------------**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 live from the Pearl Islands in Panama where we are inspecting a 2000 acre property with 3 miles of beach front. This is largely a fact finding mission to see if and how this property could be developed. Join us on this tour of Isla Del Rey.------------------**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 the impact of tariffs on real estate investors and on global events. I believe we need to listen to what the President says, but also more importantly observe what he does. These don’t always line up perfectly. As real estate investors we should prepared to adapt our supply chains for new construction and for construction materials as they pertain to improving existing properties or building from scratch.There is no question in my mind that the tariffs are not being imposed for the sake of tariffs. They are a chess piece in a larger game. But the problem facing most participants is that they don’t know the objective of the game, much less the rules of the game. --------------**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)