The Real Estate Espresso Podcast

On today show, we were talking about the supply chain in construction, and how certain seasonal effects are clouding the picture of what is happening in the real economy. At this time last year lead times four windows and doors were running incredibly long. Many window manufacturers were quoting delivery times of 16 weeks for specialty windows and sliding patio doors. By March of this year, those lead times had reduce to no more than 3 to 4 weeks. And by late spring manufacturing lead-times had reduced to a very respectable two weeks. It seemed like the post pandemic supply chain crunch was finally over. In the past few weeks, we have seen lead-times extend for many different products. Standard lead-times for windows remain short at 2 to 3 weeks. Specialty windows are now five weeks. Patio doors are 16 weeks vinyl siding as a lead time of 6 to 8 weeks.  Cement board siding is six weeks.  The spike in lead times are a function of a localized surge in demand to complete building envelope prior to winter setting in. Construction crews want to use the time during the colder months to complete the interior work without having to worry about the building envelope.  ------------ Host: Victor Menasce email: podcast@victorjm.com

Gabriel Lajeunesse is a wealth advisor with UBS and is based in Burlington Vermont. On today's show we are talking about investing in the current market conditions. To connect with Gabriel, you can find him on LinkedIn and on Twitter. https://www.linkedin.com/in/gclajeunesse/ -------------- Host: Victor Menasce email: podcast@victorjm.com

On today's show, our guest is a full fledged CPA who specializes in Tax and real estate investors To connect with Cherry, visit realestatetaxtips.ca -------------- Host" Victor Menasce

On today’s show we are talking about the marketing of new development projects to city officials. It’s difficult to know what is the best way to communicate with bureaucrats and politicians who have a say in determining whether your proposed project is going to be approved or not.  Cities have well defined templates for submission and they try as much as possible to make all applications look the same by sharing the same format.  When you talk to city officials, they will often offer guidance on what is required to get a project approved. Zoning codes  define things like the building envelope, the height, the setbacks from the property line, parking ratios, density, and so on. But the politicians who ultimately approve the project are going to answer to the local residents who will be forever angry that a politician approved an ugly building.  But what constitutes and ugly building?  ------------- Host: Victor Menasce email: podcast@victorjm.com

Today's question comes from John who writes: "You have answered a question for me in the past and is was well received for me. Next question is I have heard a few different people say that back in the 80s, the debt was inflated away.  I only know how to pay down debt.  I don’t understand how debt can become inflated away? " --------------- Host: Victor Menasce email: podcast@victorjm.com

This question comes from Sam who writes: I have 7 acres near a major boat ramp North of Houston that I am looking to develop.  The area has grown 4.11% per year for the last 2 years according to the Census. With a major development up the road I expect this trend to continue. I am having trouble finding info on income growth do you have any input on where to find this data? Do you have a Development Pro-Forma that I could look at? I don't know what I don't know and would love to learn for your experience/mistakes. The land does not have many trees, ground is relatively flat and the lot will be crushed concrete.  -Are Contractor Garages a good option to add to a storage facility/what is the typical square footage per capita needed? -With Shipping Containers are you able to refinance the property once it's almost full or is it best to sell and buy something with Real Property? ------------- Host: Victor Menasce email: podcast@victorjm.com

On today’s show we are talking about a new program being offered by Fannie Mae that theoretically should make real estate more accessible than ever.  Starting the weekend after November 18, 2023, Fannie Mae will allow 5% down payments for owner-occupied 2-, 3-, and 4-unit homes. We don’t know exactly what the underwriting rules will be. The announcement was buried deep in the Desktop Underwriter and Desktop Originator Release Notes dated October 4. The version 11.1 release of the software will be rolled out on November 18. This software is used by loan originators who work with Fannie Mae to determine whether a borrower will qualify for a Fannie Mae Loan.  As real estate investors in the commercial space, we are familiar with underwriting requirements. In particular, a property must generate enough income to more than cover the debt. The Fannie Mae announcement makes no mention of a debt coverage constraint. They typically use the debt to income ratio as a proxy for affordability. ---------- Host: Victor Menasce email: podcast@victorjm.com

On today’s show, we’re talking about why the United States needs inflation. In order to understand us we need to go back to the. Following World War II. From 1945 until 1951 US government Debt went went from 110% of GDP to 50% of GDP. How did they do it? In 1945 US government debt as at an all time high as a result of the second world war. All wars are inflationary and WW2 was no exception.  There was a massive liquidation of government debt. Real interest rates went to -13%. Inflation was running hot after WW2 peaking at 19% in 1947, but Fed rates were kept low around 2% from the period of 1945 until 1951. After Pearl Harbor the Fed capped the rate at 2.5 from 1943 until 1951. This was a wartime decision. The Fed was not allowed to operate independently during those years.  It is was trick issue. You can fool the world once. Those who bought those 30 year bonds  were virtually wiped out by the time 1980 rolled around. The government made every single interest payment, but the debt got inflated away.  Fast forward to 2023. The treasury needs to roll 5T in debt next year, plus whatever they issue in new debt. It’s unclear who will buy all of that paper. The US cannot afford its own debt.   The only way this is solved is with negative real interest rates  ------------- Host: Victor Menasce

Daniel Angel is based in Atlanta where he invests in multi-family apartments. On today's show we are talking about the state of the market and navigating the headwinds that we are all experiencing. To connect with David and to learn more, visit apexinvesting.us. ----------------- Host: Victor Menasce email: podcast@victorjm.com

Peter Neill and Ron Lockhart are based in Philadelphia where they redevelop blighted properties into affordable housing in Philly, Baltimore and New Jersey. On today's show we talking about how their investment model is extremely resilient even in today's high interest rate environment. To connect and to learn more, visit gsprei.com --------------- Host: Victor Menasce email: podcast@victorjm.com