The Real Estate Espresso Podcast

On today's show we are talking about the benefits and drawbacks of investing in a fund. We are also looking at the first year in our fund where we have made three investments. To find out more about our opportunities, visit https://ystreetcapital.invportal.com/loginThere you will have access to information about all of our projects. These offerings are by prospectus only and are open to accredited investors only in compliance with SEC regulations. ----------------**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 people at Feedspot just published a list of the 100 Best Real Estate podcasts for 2025. I am honoured to be on #13 on that list of 100 best podcasts. If you are loving what you’re hearing on the podcast, then go out and tell two friends today. Show them how easy it is to subscribe to the show. I’m amazed that some very sophisticated real estate investors still don’t know how to find podcast on Apple Podcasts or on Spotify, or any of the other twenty podcast platforms out there which carry the show. Why keep all this goodness to yourself. Spread the love around and tell two friends today. To access the Top 100 Best Podcast list, visit: https://podcast.feedspot.com/real_estate_podcasts/On today’s show we are talking about benchmarking your organization against the best in class in your industry. When you are looking to develop and mature as a company, it is often helpful to examine how the industry’s best companies conduct their affairs and to use them as a benchmark. If you are a specialist in value add apartments, you might use Greystar or the MC companies as a benchmark. If you are in the world of residential assisted living, you might use The Sage Oak as a benchmark. If you are in construction of single family homes, then you might consider Pulte Homes or Lennar.  If you are in storage, then you might examine public storage and so on. Well we are a  development company, and many of our projects involve land development. So then who would we hold up as an example of a company that does it well? A few companies come to mind. There is the Irvine Corporation which developed Irvine Ranch into the modern day city of Irvine. But this was essentially one giant 90,000 acre project that became expert at working in a single regulatory environment. Our company is active in 9 states across the US and two provinces in Canada. We would want to look at companies that are active across multiple jurisdictions.The Howard Hughes Holdings company is one such example.----------------**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 changing environment for government incentives, specifically for green energy. We’re going to look at the incentives for solar power and what has changed under the new administration and more importantly what has not changed. President Trump’s executive order during the first week of the administration rolled back many of the provisions of the inflation reduction act which affects clean energy programs. There are some key elements that remain unaffected and it's important to distinguish what remains from what's been cancelled. ---------------**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 US banking system could face some big changes if the Fed is subjected to a full audit. Right now, the Fed receives regular audits from the Government Accountability Office (GAO), but its foreign transactions are exempt from audit. If so, what could be the fall-out? Could the banking system face major reforms? How would that period of transition and uncertainty affect real estate 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)  

Today’s question comes from Steve who writes:"I’ve heard that public companies don’t like holding land on their balance sheet. Is this true, and if so, why is that?"----------------**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 I'm coming to you live from Panama in a small beachside town called Bocas Del Toro. We are here performing due diligence on a potential development with a client that owns 145 acres on an island with waterfront on both sides. -----------------**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)  

Dennis Henson wrote the book Real Impact. These are inspirational stories from thought leaders and successful people. Developing that muscle forms part of the mind-set of being successful in your own right. To get a copy of the book, you can get a copy. of the e-book at realimpactbook.com. If you scroll to the bottom and get a copy as a podcast guest. ------------**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)  

As real estate investors we are highly attuned to what is happening in the bond market. The key benchmark figure for us is the yield on the 10 year Treasury. If the yield goes up, then the cost of capital goes up. I’m going to draw your attention to some policy work that was made public by folks that are now closely connected with the new administration in Washington. The negotiations with NATO members is heating up with the US President making it clear that he expects them to step up and meet their requisite commitments of 2% of GDP under the NATO treaty. So far the US has been spending far in excess of their share and has not been demanding payment from the other NATO members.I believe the new administration will find ways to fund the military expenditures of the US with external funding. There won’t be direct payments to the US for protection. What If the US negotiates continued protection for those countries who don't meet their NATO commitments, but purchase US bonds at zero interest instead? This would have the effect of lowering the cost of borrowing for the US Government. But it would also mean that demand for Treasuries in the private market would be fighting for a smaller pool of interest bearing instruments, which in turn would lower the yield. The net effect could be the lowering of borrowing costs for real estate investors. You definitely want to be tracking developments in this arena. --------------**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 short walk through the history books. As some of you know, I’ve been building apartment buildings in Philadelphia for much of the 2010’s. We assembled numerous properties over the span of several years. Many of these homes in North Philadelphia were built in the early 1900’s. These homes were very traditional townhouses that were made of structural brick. The party walls were supporting walls for the homes on either side of the walls. If I compare construction of similar vintage in other cities, the method of construction was vastly different in Philadelphia, and other cities.-------------**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 closing a transaction. States have different methods for recording a transaction on title. Some states use lawyers to close transactions. These are most commonly referred to as attorney closing states where a lawyer is required in addition to the title company. There are a total of 18 states that require attorneys to close. The remaining states can close transactions strictly with title companies. Some provinces in Canada that used to be exclusively lawyer close provinces also offer the option of closing with title companies. But these are less common, simply because that has not been the traditional practice. Simple residential transactions involve a buyer, a seller, a price and are usually based on standard real estate board contract. Everything looks familiar to the title agent and it’s a paint by numbers exercise. Drafting the closing statement is very standard and the title agent is following a prescribed formula for completing the transaction. In order to make things simple and repeatable many title companies create rule books for their title agents to follow. This restricted path is meant to eliminate possibility for errors and is designed to enhance the overall quality of the customer experience. But these rule books don’t contemplate the more complex structures associated with a commercial transaction and the complexity of a multi-party transaction with many moving parts and then further involving one or more qualified intermediaries who are also imposing their requirements on the closing process. You will often hear that what is being requested cannot be done. It violates the rule book at the title company. Of course the client is not going to be able to convince the tile agent that they need to change their process. In that instance, the only viable solution in our experience is to get your real estate lawyer, who hopefully is well versed in the complexity of the transaction to provide the direction to the title agent on how to conduct the transaction. The lawyer will tell them exactly the same thing that you did. But the title company will listen to the lawyer, when they won’t listen to you. This is one of those cases where there are so many people involved in closing the transaction that the most important role for you is to assign a quarterback for the entire transaction. That person’s role is to get people communicating who don’t think they need to talk to each other. Everyone is sitting in their corner with their rule book waiting for everyone else to meet the criterial stipulated in their rule book and nothing moves. ----------------**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)