The Real Estate Espresso Podcast

We are going to do a mini-series on some of the latest AI tools that are specifically tailored for real estate investors. So we will be doing two shows back to back to highlight what is emerging as a new software arms race in property due diligence. On today’s show we are taking a look at Land.id (formerly MapRight). This software consolidates data from multiple disparate data sources and allows for the plotting of more than 40 layers of information on top of satellite imagery. This includes survey data, soils reports, topography, zoning, to name just a few. --------------**Real Estate Espresso Podcast:**  - Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)  - 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)  

Today's episode was originally posted in April of 2018. We are talking about the psychology of raising funds from 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)  

On today’s show we are talking about how last week’s drone attack in Russia will forever change the way investments are made in military equipment and warfare in general. The economy in the US is being bolstered by a significant amount of defence spending. Europe is about to increase its defence spending on a large scale. The same can be said for Canada. Conventional warfare has been based on the premise that the biggest baddest army will overwhelm an enemy and crush any opposition. That notion got challenged in some of the most prominent writings including Sun Tzu who wrote “The Art of War” in the 6th Century BC. It was employed during the Byzantine Empire along its eastern front in the 8th and 10th centuries. Sure you can shoot a $1000 drone out of the sky with a million dollar Patriot missile. But is that an efficient defence against these new threats? Now this is a real estate show, not a military show. We’re here to talk about real estate. When we think of real estate investment one of the principles is that demand for real estate follows employment.When we think of military industrial complex it conjures up images of companies like Lockheed Martin, Harris, Honeywell, Textron. These companies drive major employment. But increasingly the military industry is seeing a lot of new entrants. One of my business partners runs a incubator that is focused on the defence industry in Colorado Springs. This facility is conducting some of the most advanced research and development on new military systems. The speed and agility with which the Ukraine has modernized its underdog military is a lesson for countries looking to modernize their military. ---------------**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)  

If you would like a copy of our Due Diligence Checklist, click HERE.-----------On today’s show I’m sharing the story from this past week of someone who is in our investor ecosystem. She owns several properties in a tertiary market about an hour outside Toronto. She is in her 70’s and her husband has several physical limitations. She is her husband’s principal care giver. She has invested in several of our projects over the years and is someone who our team holds dear in our hearts. One of her properties is over 100 years old and was in need of some exterior brick repair. She hired someone who was "in the area" performing masonry work. They had a business name that sounded big and impressive. They listed an address in Toronto and their website had plenty of testimonials and photos. I got a call mid way through the week with an urgent request for help that the contractor was asking for a large up front payment. I made it clear that she should not every pay in advance and should only pay in tranches as work is completed. There was no contract. The price changed part way through the job, and the demand for payment was a huge red flag. By all accounts, the work was well done. This is one of those stories that has a relatively happy ending. But the entire engagement was built on a foundation of lies and it could have been a real problem. -------------**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)  

Jeff Peterson is based in Cary, North Carolina. On today's show we are talking about the intersection of active business and real estate and the various twists in the road that make the journey take an unexpected route. You can connect with Jeff at TurtleShellRentals.com.You can also find his new book "Are We There Yet" on Amazon.---------------**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 looking at the economy and trying to figure out if the global economy is growing or shrinking, and by extension how the economy will be affected in North America.Thursday this week the ECB announced  another 0.25% rate cut while at the same time signalling that they are nearing the end of their rate cutting. --------------**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)  

Jared Jones is based in Riverside California where he is taking advantage of the changing regulatory and zoning landscape to fill a unique need in the marketplace in ways that the national home builders are not positioned to capitalize on. Zoning changes have made it easier to intensify existing properties without impact fees and utility expenses while saving considerably on the land cost. You can connect with Jared on Instagram with the handle "MiddleHousingPartners". You will also find him active 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)  

On today’s show we are talking about new dangers in apartment buildings that have not been fully handled in the design of buildings or the building code. Certain metals produce their own fuel once ignited. You probably have done the science experiment of lighting a piece of magnesium wire on fire. Once lit, you can put this piece of burning wire into a tub of water and it will keep burning. The conventional wisdom in fire fighting is that if you have a fire, then the fastest way to put it out is to remove its source of oxygen. But what happens when the fire produces its own oxygen and the chemical reaction continues no matter what you do? Have you ever wondered why fireworks don’t go out even if it’s raining? Once a firework is lit, it will continue to burn until all of the fuel is expended. Now imagine if the fire is in the underground garage in your apartment building, or perhaps in the bicycle storage room next to the lobby of your building. Those electric bicycles are now a new type of fire hazard that didn’t exist a few years ago. The electric vehicles are a new type of fire hazard that didn’t exist a few years ago. When I look at the risks in a building, I believe that the bicycle room represents an equal if not a greater fire risk than the garage. In many cases, charging is being retrofitted into buildings that were never designed to have electric vehicles. This is something that you as a building owner need to become educated about and take real steps to mitigate that risk. --------------**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 doing another in our monthly beginner series. The real estate espresso podcast is unlike other podcasts in that most others are focused on a more entry level audience. Our listeners are sophisticated. Many of you own large portfolios of apartments. But you also have people in your life who are interested in learning more, but maybe don’t have access to high quality information. The idea of sending your spouse to a $199 weekend bootcamp for beginners where they are going to be abused by sleazy sales people sounds unthinkable. So where do they go. Look no further. We are going to dedicate a couple of shows a month to topics that will accelerate the learning for less experienced investors, and might give the most sophisticated investors a new way of explaining a concept that is otherwise complex to describe.On today’s show we are talking about market cycles. Market cycles are the result of the delay between perception and reality. The best analogy I can use is what happens when you drive a car. If the delay between turning the steering wheel and the car actually turning was not instant, you would have a tendency to oversteer. You would be continually wavering in your lane because of the delay between cause and effect. The same situation exists in every market, including real estate. We see it in retail where retailers rush to build inventory in order to get ahead of possible tariffs. But then they are sitting on tons of excess inventory and the manufacturers witness a cycle of feast and famine. Huge orders and then the orders dry up. This pattern repeats itself in many places in the economy.----------------**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 looking at the anxiety of missing a deal. Real estate investors are deal junkies. Let’s call it like it is. We’re going to look at a real life example. We’re going to talk about creating value with land. There are two main methods for creating land value. One is to start with raw land and carve it up and get it zoned and serviced for development. The other is to take land that has already been carved up into tiny parcels and put it back together so you can do something more substantial with it. Sellers are often of a mindset that they are the ones holding the cards. Their property is worth a gazillion dollars, especially if it has development potential. Some rich developer will come along and offer me so much more than the property is worth in its current condition to an owner occupant. In a dense urban environment land is both scarce and abundant. It’s abundant in the sense that there are hundreds of properties for sale at any given time. Most of the land is not suitable for redevelopment in its current form.A case in point is a small land assembly that has already been designed for a 66 unit mid rise  building. 66 units is a bit small from a property management standpoint. Ideally a building should have more than 100 units in order to optimize the economics of staffing the project.The proposed building is already compliant with the zoning requirements and can be built by right. There are constraints on the size of a building on this street because of utility capacity on the street. A larger building would require an upgrade to the water main which would add considerable cost and delays to the project. The main constraint is water volume for fire suppression. A larger building would require a larger water main pipe and possibly a booster pump if the pressure at the top of the building is not sufficient. So we know we are not going to get more density on that block regardless of the zoning. The original land assembly consisted of two properties and along the way different scenarios of three and four properties were considered and negotiated.In the end, while a larger project would have been possible, we opted for a smaller mid-sized project at only 66 units. This past week, two more properties came up for sale on the same street. Among those was a property that had previously been considered. It was being offered at 30% below the original asking price. This is where sellers often get confused. You see there are realtors out there who will pick the most expensive comparable sale in the area and recommend that as the asking price for the sale. It’s as if there is a broad market for development land and the offers will start pouring in the second the land hits the market. But when you are offering a property that will ultimately form part of a land assembly the market for buyers shrinks dramatically. You have two neighbours, one on the left and one on the right. There are only two possible buyers for your property as a development site. ----------------**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)