The Real Estate Espresso Podcast

If you’re been listening to this show for a while, then you will know that I’ve been saying consistently that the jobs data being reported by the Bureau of Labor and Statistics in the United States cannot be correct.  Now think about it, here is a real estate developer who happens to live in Canada stating pretty boldly that the US government is reporting data incorrectly. How crazy is that.  Well some might have been surprised that the BLS issued a revision to the past year’s numbers and disclosed that the number of new jobs reported was actually 818,000 lower that what had been previously reported.  ----------- **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)  

I'd like to invite you to be my guest for a sunset cruise in NYC on August 29 from 4PM to 8PM. We will depart from the East River and tour the Hudson River with stunning views of the NY skyline. There will be great conversation, fine cuisine, and a few presentations on alternative investments. If you're interested in learning more, send an email to podcast@victorjm.com and put "Hudson" in the subject line. ------------ On today’s show we are looking at a new rental market report published by Zillow for the month of July.  A cooler rental market is prompting more property managers to offer concessions in a bid to attract new tenants. Though rent growth is only slightly softer than last year, far more property managers are offering short-term perks. On today's show we are going to try and make sense out of what this report could be telling us. ----------------- **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)  

I'd like to invite you to be my guest on board a tour of the Hudson River in NYC on Aug 29 from 4-8PM. We will depart from the East River in Lower Manhattan. This exclusive event is for accredited investors only. There will be great conversation, fine cuisine, an incredible view of the NY skyline and a few presentations on alternative investments. To learn more send an email to podcast@victorjm.com and put the word "Hudson" in the subject line. ------------- On today's show we are talking about the 2024 revision of the IECC energy code which was just published last week. The National Association of Home Builders published a summary of the changes in this six page document. --------------- **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’s show is another in our beginner series. On today’s show we are talking about what makes a site suitable for development.  A location might seem perfect in terms of proximity to amenities, demand for housing in the area, good schools,  When I look at a site I’m considering the density that would be desirable in that location and the density allowed under the zoning. Some people look at density allowed in the zoning and think that’s the only determining factor.  This is not the whole story. If you are going to achieve a particular density, then all of the requirement to achieve that density need to be met.  --------------- **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)  

Nic DeAngelo is based in Southern California where he invests in multiple asset classes. On today's show we are focused on his favorite segment - Industrial. To connect with Nic and to get access to their studies, visit https://saintinvestment.com/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)  

Brandon Burns has completed more than 4000 Section 1031 transactions so far in his career. On today's show we are talking about some of the pitfalls associated with the 1031 as well as techniques to build additional safety into 1031 transactions. To connect with Brandon you can call the office directly at 858-331-0131 or email him at brandon@vanguard1031x.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: [@ystr

On today’s show we are looking at the new NAR rules that take effect on August 17 as a result of the class action lawsuit affecting real estate brokerages in the US.  ------------ **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 the latest consumer price index reading for the month of July in the United States. July was the fourth straight month of declines in the consumer price index with a month over month increase of 0.2% an annual rate of 2.9%. As real estate investors, we pay attention to this because of the influence it might have on setting interest-rate policy. The most recent federal reserve announcement which held the short term fed funds rate steady, was looking for continued progress in the fight against inflation in order to gain the necessary confidence to lower interest rates. Many of the analysts I follow her predicting a September rate cut of something in the range of half a percentage point. However, for real estate investors, our interest rate is determined by the yield on the US tenure treasury and for investors it is indexed to either the five year or 10 year Canadian mortgage bond. So who sets the yield on the 10 year treasury? It’s price is determined by the laws of supply demand for those bonds.

Today’s show is covering a story that is coming out of the UK. It’s a warning to all real estate investors. While the story has not hit the US or Canada yet, I personally think it is only a matter of time.  I’ve done a bit of research on the technology. Promoters of the technology rave about the high insulation value, the excellent performance with a complete vapour barrier. The application is fast and the coverage is complete if applied properly.  These spray polyurethane foams cure through a chemical reaction that produces isocyanate vapors and aerosols. Even once the surface is dry and hard, it can take a long time for these gases to escape to the surface. Some manufacturers recommend a 24 hour waiting period and then ventilating the area until the all of the gases are out of the enclosed space.  There are some applications where quite frankly the closed cell foam is hands down the best product. The edge of the floor joists at the perimeter of a home is one such example. The traditional approach of using batt insulation and plastic vapour barrier is simply ineffective in those areas. The geometry is too difficult to seal properly.  According to a report issued in February of this year by Building Safety Regulator in the UK, there is a concern that foam insulation applied to timber sloped roofs in existing dwellings creates a moisture risk. This 76 page report outlines the research and findings.  ----------- **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)  

This question comes from Michael who writes: One that I struggle with is as follows.  Since my non qualified investments are mostly in index funds and mutual funds, my ability to deploy them for investing is limited.  I can of course sell for liquidity, but incur an enormous capital gain tax (Remember for those of us in high tax states like NJ- and even worse in CA- there is a state tax on the Cap gain that be as onerous as the Federal Tax) as we have out of ignorance in the past.  So there are other options- a securities backed line of credit, opportunity zones, creative use of trusts, tax advantaged investments such as oil/gas, or REP status and/or the Short term rental "loophole".  I have looked at all of these.  None is particularly appealing- SBLOC is likely the best, but difficult with high interest rates and finding the best lender for this purpose.  So ways to address this problem and use numbers to figure out the best approaches would seem like an interesting topic to me. ------------ **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)