The Real Estate Espresso Podcast

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)  

On today’s show we are talking about a new provision of the latest tax bill that passed the US Congress and is now before the Senate. During the election campaign, President Trump said clearly that he did not favor a central bank digital currency. In fact he has made several statements in support of crypto currencies and his family is active in various crypto initiatives. But it seems that the President may have accidentally created the underlying systems that in fact amount to a CBDC. Whether this is an accident or deliberate is hard to tell. But the effect on the long term freedom and privacy of the citizens of the US is the same. The Federal Reserve Act explicitly prohibits ordinary citizens from having an account at the Fed. In order for a CBDC to be enacted in the US, it would require that aspect of the legislation to be modified. On today’s show I’m going to unveil the plumbing that is being created in the system that effectively amounts to a CBDC with direct government oversight.-------------**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)  

Alex Freytag's "Stretch Not Snap" is a business fable that addresses a common challenge faced by entrepreneurial companies: how to transform the employee mindset into one of ownership, engagement, and shared vision, particularly through the strategic implementation of incentive plans.The book builds upon the foundation laid in another  business fable book by Gino Wickman and Mike Paton's "Get A Grip”. Freytag revisits the characters of Vic and Eileen, the leaders of Swan Services, as they navigate the next phase of their entrepreneurial journey.The story opens with Vic and Eileen facing a growing frustration. While their company, Swan Services, has successfully implemented the Entrepreneurial Operating System (EOS) – gaining traction, clarity on priorities, and leadership team alignment – they observe a fundamental disconnect among their employees. Despite the company's progress and the leaders' dedication, a prevailing "me-first" or "entitlement" mentality has taken root. Employees seem to expect bonuses and rewards merely for showing up, rather than genuinely connecting their daily efforts to the company's overarching vision and financial health. This disengagement is stifling Swan Services' potential and preventing the full realization of its culture.The core of "Stretch Not Snap" is the unfolding of the ProfitWorks Solution, a methodology designed to create a self-funded incentive plan that genuinely drives employee engagement and financial results. The fable illustrates this solution through the practical challenges and successes faced by Vic, Eileen, and their team. The essence of the ProfitWorks Solution revolves around six key principles:1. Financial Literacy and Transparency2. Identifying Key Performance Indicators (KPIs) and Leading Measures3. The Self-Funded Incentive Plan4. Ending the Entitlement Mentality5. Sharing the Vision and Building Ownership6. Continuous Learning and Adaptation------------**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)  

George Ross taught negotiation at the law school at NYU for over 20 years. He honed those skills over a career working with Goldman and DiLorenzo, his own law firm, and as Executive Vice President in The Trump Organization. Today we are talking about preparation for negotiation, a topic that he emphasizes in his book. -------------**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)  

At Y Street Capital, we have several projects across several states. We currently have two storage projects in construction and we have more in the pipeline. If you would like to learn more about our storage fund, click HERE find out more about our storage projects. If you don't have an account on our investor portal, you can register and we promise not to spam you with tons of email. These opportunities are only open to accredited investors residing in the United States and are in compliance with SEC regulations. ---------------On today’s show we are talking about staffing projects with the best people possible. Yesterday I had an experience that quite frankly was humbling. I’ll come back to that later.In the world of traditional HR, the emphasis is overwhelmingly on skills and experience. But when you hire for a key role you are always looking for a combination of both skills and attributes. Skills are those things that can be learned over a relatively short time period. Attributes are developed over a much longer period and reflect the makeup of the individual. We look for a set of attributes across several dimensions including their sphere of influence, their planning horizon, their ability to handle complex multi dimensional problems, their financial acumen, their character.The humbling part is at the end. Enjoy....---------------**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 tradeoff between security and convenience. Your phone is a device that has so much knowledge about you embedded within it. How long before the very devices that we rely upon to act as our communication device, our camera, our entertainment screen, our wallet, and the key to unlock the entry door to our home becomes too much of a liability?The epidemic of identity theft has been problematic for some time. It used to be the case that identity theft could allow someone to get a credit card in your name. So the question is what do you as a real estate investor need to know to protect your properties? How do you prevent someone from entering a building who is not authorized to do so? Smart building systems are extremely convenient. But are they secure? How do you perform the evaluation to know whether you are buying the right system? These are more questions than answers. Even if you have an answer today, who knows whether the answer will still be correct in a year or a month or a week from now. The capability of AI systems is growing at an exponential rate. -----------**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)  

Computer algorithms are great at processing vast amounts of data and then making either recommendations or decisions based on that data. AI is even better at that process. Yet somehow consumer groups feel like landlords have a disadvantage when it comes to data and therefore should not have the right to use that market data when it comes to setting rates for a rental property.The latest legislation to pass through the US Congress has a Federal statute that aims to block the states and local governments from oversight of AI and automated decision systems for 10 years. This won’t block claims of anti-competitive behaviour. If successfully passed, this would give companies like Yardi, RealPage, and numerous others a clearer path to use their algorithms for the benefit of making pricing decisions based on supply and demand. If the data is being used for landlords to collude, then that would constitute a cartel which violates anti-trust laws. But the use of data for dynamic pricing, both up and down does not constitute collusion. The new legislation keeps the playing field favouring the development of technology to improve market efficiency. The states should not be blocking the use of technology.-----------**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 is not a political podcast. It’s a real estate podcast. Now NYC is an important market for real estate. I personally don’t invest in NYC for reasons that many will understand. Part of the affordability problem is that NYC’s population is made up of 25% low income families. As housing demand has increased, so too have rents. Affordable rents get pushed further and further away which increases commute times.The race for Mayor in NYC is a hotly contested one with an incredible array of candidates. When I say incredible, it’s because each of these candidates can bring sweeping impacts to this city of 8.5M people. If people flock to NY, or if they leave NY, it affects other markets in a material way. There are seven candidates on the democratic ticket for Mayor. The incumbent Mayor Adams who is under criminal investigation is running as an independent. There is one republican candidate. The Democratic primary is going to be held on June 24 which could reshape the election. On today’s show we are going to look at the top 3 candidates according to the polling results and dissect their real estate platforms.----------**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)  

The latest tax legislation winding its way through the Congress and the Senate is sunsetting a number of tax credits. These can have a material impact on your projects. So understanding them is important. ----------------**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)  

Dr. Tom Burns is based in Austin Texas where he invests and develops real estate. On today's show Tom and I are having a fireside chat about perspective on the current market conditions. Tom is one of my favorite people in the world. He maintains perspective and wisdom even during turbulent moments. To connect with Tom and to learn more visit richdoctor.com or email him directly at tom@richdoctor.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)