The Real Estate Espresso Podcast

Ryan Smith is based in San Diego California where he specializes in SBA financing for business across the US. On today's show we are talking about the nuances of the different SBA programs. You can connect with Ryan at thinkSBA.com ------------ Host: Victor Menasce email: podcast@victorjm.com

On today’s show we are talking about why we are seeing long term interest rates falling, even though short term rates have held steady since mid summer.  We can see clearly what has happened in the market. Long term rates went up from June to October, peaking at nearly 5% for the 10 year treasury. The rates have dropped by nearly a full percentage point since the end of October. The yield curve had nearly flattened after being inverted for much of the past 18 months. Now the yield curve is deeply inverted again. As of publication of today’s episode the yield for the 10 year was 4.12% The rates for permanent financing are indexed to the 10 year treasury in the US, and the commercial bond rate in Canada. Canadian CMB bond rates are even lower at 3.66% for the 5 year and 3.72% for the 10 year. It’s tempting to simply rejoice at the lower borrowing costs and ride off into the sunset with new commercial loans at respectable rates. But life’s not that simple. The real question is why are rates falling so rapidly after rising sharply in the weeks leading up to the middle of October?  What is the market telling us? What is the bond market telling us about the economy?  What is the bond market telling us about inflation?  What is the bond market telling us about the future trajectory of interest rates?  What is the bond market telling us about the future price of the medium term treasuries, and is there anything we can learn from that?  ---------- Host: Victor Menasce email: podcast@victorjm.com

Today’s question comes from Omar.  I’m working the design of a new building and the electric utility is forcing me to change the design of the electric meters from a wiring closet inside the hallway of a residential building to the building’s exterior. This is going to require the running of conduit for several hundred units from the transformer vault to the exterior of the building and then from the outside back into a wiring chase. I’m estimating the cost of this additional electrical work at nearly $4000 per unit. I’m facing a project cost impact more than $800,000. What can I do to save cost? Having a few hundred electric meters on the exterior of the building is going to consume a lot of area and be very ugly. Their constraints just seem insane. Do I just have to meet the utility’s requirements or are there alternatives? ---------- Host: Victor Menasce email: podcast@victorjm.com

Today's question comes from Richard who asks: "I’m considering an investment in a boutique hotel vacation property in Costa Rica with 18 rooms on the beach. For investors looking beyond their local markets, what considerations and challenges should they be mindful of when venturing into international real estate investments?" ------------ Host: Victor Menasce email: podcast@victorjm.com

Today's show is a very special segment with Dallas based CPA Mike Pine. We're talking about depreciation and how it can be advantageous for investors of all types. ------------- Host: Victor Menasce email: podcast@victorjm.com

On today’s show we are talking about staffing. We’re reading daily headlines of staffing cuts at companies across the economy. Just in the past week we’ve seen headlines of 1500 people let go at Spotify, 3000 at TD Bank, 1000 Track maintenance workers at Union Pacific Rail, 1200 at Broadcom in the SF Bay Area just to name a few.  The question is, how does a business owner know when is the right time to hire, and when is the right time to reduce the workforce? Money comes into a business in one of three ways: Earned income Residual income Capital gains Workforce reductions are among the hardest decisions for a business owner or a manager to make. But in truth, the hiring decision is almost equally difficult. Both decisions involve solving a problem.  In the case of hiring, chances are that the organization is stretched and having a hard time keeping up with the workload. Hiring can bring some relief to overworked people and both customer and employee satisfaction can improve with the right hires. 

Derek Vickers is based in Orlando, Florida where he invests in mobile home parks in Florida and the Carolinas. On today's show, we're talking about how to create value in mobile home parks. New parks are not being permitted in many communities and a turn-around on existing parks can be a good affordable solution in the market. You can connect with Derek at derekvickers885 on all of the social media platforms and check out his webinar on MHP investing at go.parkinvestingpro.com. ----------- Host: Victor Menasce email: podcast@victorjm.com

Greg Mohr is based in Lincoln Nebraska where he is a national franchising consultant, helping potential franchisees find the right business to undertake. To learn more and to connect with Greg, visit franchisemaven.com ------------- Host: Victor Menasce email: podcast@victorjm.com

“Never Split the Difference: Negotiating As If Your Life Depended On It" by Chris Voss is an insightful and practical guide to negotiation, drawing on the author's extensive experience as a former FBI hostage negotiator.  ----------- Host: Victor Menasce email: podcast@victorjm.com

The COP28 summit just got underway in Dubai, a region known for oil production. On today’s show we’re going to look at a recently published paper  coauthored by Kelly Shue of Yale SOM and Samuel Hartzmark of the Carroll School of Management at Boston College. This paper shows categorically that the penalties imposed on high polluting firms actually don’t have the desired effect and in many cases can be counter productive to the stated goal.  --------- Host: Victor Menasce email: podcast@victorjm.com