The Real Estate Espresso Podcast

On today's show George and I are talking about how to delegate authority within a negotiation. We're drawing on George's history within the Trump Organization and discussing where and when George had the autonomy to negotiate without checking back with the boss. ---------------**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 whether it makes sense to include solar energy as a component of your projects.Solar power systems used to rely very heavily on subsidies because there was no way you could rationalize them on a financial basis without it. These days the cost of these systems have reduced to the point where they are much easier to justify. ------------**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 the first day of each month we review the book of the month (BOM). Our book this month is "Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game”The traditional narrative of entrepreneurship often conjures images of two guys tinkering over a prototype in a garage that has been converted into a lab. Think of sleepless nights, ramen noodle diets, and the daunting task of building a business from the ground up. It’s a path fraught with risk, where the vast majority of startups fail within the first few years. Walker Deibel’s "Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game" offers a compelling and meticulously argued alternative: he argues that you should bypass the perilous early stages by acquiring an existing, profitable business and then focus on growth from there. ------------**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 another look at hyper local versus macro. Today we’re comparing Boston, Charlotte and Phoenix, three cities at almost polar opposite ends of the country. But first, at my company Y Street Capital, we are building. A lot of investors got into trouble over the past few years because of irrational exuberance and a tendency to look only at the upside and ignore the downside. At Y Street Capital, we believe that underwriting is a skill that goes way beyond having a spreadsheet. It consists of a discipline of crafting market assumptions that result in a safe project. I see too many investors manipulating their spreadsheets in order to get numbers that work. This is a very dangerous practice and it requires a strong discipline in underwriting to avoid that temptation. Our consulting division provides underwriting services to other investors and developers all over North America. If you find yourself tweaking numbers in your spreadsheets, you may want to consider engaging our consulting group to get an institutional quality underwriting completed for your projects. Reach out to me at victorm@ystreetcapital.com and our team of experts would be happy to help you with your underwriting. ------------**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)  

Yesterday Canada held its Federal election. While Canada has a number of political parties, it was really a 2 party race. Mark Carney running for prime minister is head of the liberal party and Pierre Poilievre is head of the conservative party. When Justin Trudeau stepped aside a few months ago, the liberal party elected a new leader in Mark Carney. Mark Carney served as governor of the bank of Canada, and in an unusual step as governor of the bank of England. To have the bank of England select an outsider to head their central bank was an unusual step. But it was clear that Mark Carney had earned a considerable amount of trust globally as a solid central banker. He presided over the Bank of Canada through the GFC in 2008 and frankly Canada was largely unaffected by the crisis in the US, which did by the way spill over into Europe.The one central figure in the election was not even a candidate. Donald Trump’s statements about trade, annexation, military spending, and border security became defining issues in the election. The Canadian people have spoken and the country has elected a liberal minority government. My assessment is that the conservative leader continued to use campaign slogans from 6-12 months ago. He failed to pivot to the reality on the ground which was the new candidate facing him in Mark Carney, and he failed to pivot in a way that will address the negotiation with Donald Trump. Mark Carney did a much more convincing job of demonstrating leadership throughout the campaign. Pierre Poilievre did not play the part of Prime Minister and I believe that he did not convince the electorate at large that he was up to the job. This election had extremely high voter turnout compared with previous elections.As a developer who is active in both Canada and the US, I really would have been happy with either party winning the election. Both had pretty decent initiatives aimed at stimulating housing. The strong fundamentals combined with a removal of several barriers makes investment in some markets in Canada extremely attractive. On today's show we are going through the real estate incentives in the liberal platform. --------------**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 residential homes for sale inventory across several markets in Florida. We have been experiencing the so-called lock in effect with many owners holding onto very favourable loans at historically low interest rates. Even if someone needs to move, they will often rent out their primary residence and then rent a home instead of buying rather than sell and be forced to pay a much higher interest rate when buying a new home. There are signs that the lock-in effect is now starting to wane somewhat and the number of homes for sale is rising rapidly in several markets across the US. The reason we want to look at this is because the residential market does contribute to rental stock. In the condo market in particular, we see a large proportion of condos being offered for rent by owners of single units or small portfolios. The conventional wisdom is that somewhere between 20-25% of the condo market will contribute to rental market inventory. Markets that used to be hotspots like in Florida have seen a near meltdown in demand. The condo townhouse market in Florida is experiencing 9.7 months of supply. We often hear about the challenges in the coastal markets. But Orlando’s inventory in April 2025 is about 30–40% higher than April 2024, reflecting a substantial increase in available homes. The market has shifted to a buyer’s market, with a 7.73-month supply in January 2025, driven by high new listings and slower sales---------------**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)  

Cris Zimmerman is currently based in Spain, but his family is from Frankfurt where he own hundreds of assets including apartments, hotels, and various other commercial properties. On today's show we are talking about the unique elements of investing in Germany. Cris also hosts events for high net worth families across Europe and North America. To connect with Cris, visit medicilegacy.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)  

Layla Kunimoto is based in Seattle Washington where she invests on a full-time basis. She also is the publisher of the weekly newsletter AccreditedInsight.com. On Monday, April 28 at noon CDT, Layla will be on LinkedIn Live with Robby Butler from the Y Street Capital team talking about the use of AI for underwriting and due diligence. To attend that live event, here is the link for the live stream - https://lnkd.in/eitNBS7n---------**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 look at whether it makes sense to copying a proven formula or blaze a trail and deliver a new product type in a geographic area.But first, if you’ve been wondering where to place your capital that will be safe in today’s turbulent environment, you may want to consider participating in a high quality project managed by industry experts. At Y Street Capital, we have several projects underway in our pipeline and we have a limited number of investment opportunities. These opportunities are only available to accredited investors residing in the US and are in compliance with US SEC regulations. If you’d like to learn more about what we have going on at Y Street Capital, visit YStreetCapital.com and register for our investor portal https://ystreetcapital.invportal.com/login. --------------**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 how to model a project. I often hear people advocating for a simple spreadsheet to perform quick calculations. There was a time when I used these simple tools to make fast decisions. There is a trade-off in any project where speed is a component of a quality outcome. However, as time has progressed, I’m less inclined to rely on quick math for anything. The reason is that when bank leverage is involved, which it often is, the analysis becomes increasingly sensitive to small changes. A small change can cause a project to flip from attractive to upside down. --------------**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)