The Real Estate Espresso Podcast

On today’s show we are talking about aluminum wiring in apartment complexes. This was common from the 1960's to the mid 1970's. About 2 million housing units are estimated to still have aluminum wiring. Some insurance companies will decline to insure your building if you have aluminum wiring and those that remain will charge extra. But there are a couple of remedial solutions. ------------- Host: Victor Menasce email: podcast@victorjm.com

Grant Reaves is based in the deep south where he invests in Flex Multi-Tenant Industrial. On today's show we are talking about his strategy for adding value to these types of buildings. To connect with Grant and to learn more, visit Stoic Equity Partners at stoicep.com or email him directly at greaves@stoicep.com

Dan French is based in Austin Texas where he has amassed a portfolio in excess of 17,000 units investing in multi-family apartments throughout the South and Southeast. He divested of the majority in 2019 when it appeared that market was overheated and has been sitting on the sidelines ever since. On today's show we are talking about the market cycle and how being patient has proven to be a virtue. To connect with Dan and to learn more, visit atxacquisitions.com or call him directly at 845-629-1808. --------------- Host: Victor Menasce email: podcast@victorjm.com

Real Estate Investors are gritting their teeth at the moment. The benchmark SOFR remains steady, but the 10 year treasury which is the benchmark for permanent financing has risen sharply in the past week and hit a high of 4.65% yesterday. Many are wondering what is causing the bond yield on the 10 year Treasury to continue to rise. We are also seeing oil prices rising at a time when major parts of the world are experiencing economic slowdown. We also have gold reaching record highs.  The obvious questions are “Why?” And what does this mean?

On today’s show we are taking a look at the Macro economy. The bureau of Labor and Statistics published the latest CPI data which came in a bit hotter than expected. This is implying that the Fed will need to keep interest rates higher for longer to combat inflation. The Fed keeps saying that rates needs to be maintained higher for longer so that aggregate demand is reduced to stamp out inflation.  At least, if you read the mainstream media, that’s what they would have you believe.  The narrative is that the economy is still strong and that the GDP growth is high and unemployment is low.  In order to understand what is real in the economy we have to look closely at what is driving the economy.  When you look at all of the growth that has happened in the economy in the past year, it’s been as a result of increases in government spending. It's artificial growth, an illusion. --------- Host: Victor Menasce email: podcast@victorjm.com

On today’s show we are talking about the EB5 Investor Visa and whether these sources of investment funds have the potential for being useful for real estate projects.  The goal of the EB-5 program is to enable immigrants to get an accelerated permanent residency permit through an investment in a qualified EB5 investment.  ----------- Host: Victor Menasce email: Victor@victorjm.com

Today’s question comes from Paul who asks.  I’m putting together my plan for conferences for the remainder of this year. I’m curious how you determine how much time to spend out of the office attending conferences? How do you decide which events to attend?  ---------- Host: Victor Menasce email: podcast@victorjm.com

On today’s show we are taking a look at data sources when it comes to understanding the market.  We know there is a gap between asking rents and contracted rents on average. Sometimes you will see a listing as a tenant and the landlord has listed the rent. Some tenants will treat the rent as a fixed number and either pay the asking rent or look elsewhere.  But then a subset of tenants will make a rental offer which might be different than the asking rent. The result is a negotiation.  The rental price might not change in that negotiation. The savvy landlord wants to preserve the value. They don’t want to change the monthly rent. So if they give a discount, they would prefer to offer a rent concession in virtually any other form.  It could be a month of free rent, as in 13 months for the price of 12. They’re still signing a 12 month lease and maybe offering the second or third month of the lease term as the free month. That way, when they compile their numbers for the end of the year, the monthly numbers look stronger even in the presence of a rent concession.  If you’re looking to make an investment, where do you go for a reliable source of rental comp numbers? The asking rents that are publicly listed are just that, asking rents. That’s not indicative of the actual contracted rent.  We can find all kinds of market data on the internet. But before you look at that data for a particular area you need to ask yourself some important questions. ------------- Host: Victor Menasce email: podcast@victorjm.com

Dennis Cisterna is based in Las Vegas where he invests in institutional quality office and retail on a nationwide basis. On today's show we are talking about the opportunities that are evident when you're willing to go counter-current. To connect with Dennis and to learn more visit sentineloppfund.com. ------------ Host: Victor Menasce email: podcast@victorjm.com

Randy Langenderfer is based in Houston Texas where he invests in multiple markets. Over the past decade he has invested in about 1,600 units. On today's show we are talking about finding the right partners in remote cities. To connect with Randy visit invest-ark.com ---------- Host: Victor Menasce email: podcast@victorjm.com