The Real Estate Espresso Podcast

Today's question comes from David who writes: Thank you for all the education you provide daily! It’s clear and concise and relevant and much appreciated. In talking with a Canadian associate this weekend I was informed that Canada doesn’t offer 30 year fixed financing like in the States. I never knew this! In talking with another Canadian today we were discussing that in his lifetime there hasn’t been such a quick and continuous rise of interest rates. This appears to be new territory for Canada. With the housing stats discussed, time on market increasing, and quantity of houses on the market decreasing, this is confusing. I understand why time on market would be increasing but can’t get my head around why quantity of housing on market is decreasing. Wouldn’t folks with a mortgage rate that is potentially resetting  in the near future be in a position of having to get rid of these mortgages whose monthly payment is about to reset significantly higher? Seems like a big onslaught of distressed property is headed down the pike in Canada. What other factors do you see at play here that help to make sense of what appears to be conflicting numbers of time on market vs. quantity of houses on market.

On today’s show, we are putting some of the global financial risks on your radar that is not getting any air play in the news. If you have been a listener to this podcast for a while, it should be clear that we are in the throes of a global economic downturn. However, the manifestation of that is not identical on every single continent. There are three different predominant themes in the economy in North America, Europe, and Asia. ---------- Host: Victor Menasce email: podcast@victorjm.com

This question comes from Ravi who writes:   I have been a long time listener of your prodcast. In fact I won a signed book a few years ago. I have a lot of respect for you and was hoping to get your opinion regarding the build to rent investment thesis. I have considered investing through a company called Southern Impression homes. I was not sure if you had any experience with them. They build single family, duplexes, and quads in the Florida area and also manage them. The concept seems compelling and appears that private equity companies are now involved. Perhaps, my question may have broad interest for your listeners. Once again thank you all of your great work. ---------- Host: Victor Menasce email: podcast@victorjm.com

Today is another AMA episode (Ask Me Anything) Jay writes: I recently bought a lot in a subdivision. Where do I find out what the developer has agreed to do exactly for the infrastructure?  I already discovered a public access walk path that is graveled and the plot said it’s supposed to be paved. Where can I go to get details of what is supposed to have been done to the infrastructure including promised amenities? --------------- Host: Victor Menasce email: podcast@victorjm.com

Angie Stauffer is based in Gilbert Arizona where she is a senior executive with YRefy. The company helps student loan borrowers in distress with loan modifications. These loans cannot be forgiven through personal bankruptcy. By lowering the interest rate and extending the amortization period, the company gives the borrower a realistic and affordable plan for repayment of the loan. To learn more, visit investyrefy.com or reach out to Angie at AStauffer@yrefy.com ----------- Host: Victor Menasce email: podcast@victorjm.com

Robby Butler recently joined our real estate development team. On today's show you're going to get a chance to meet him for the first time. You can reach him directly at robby.butler@ystreetcapital.com ------------- Host: Victor Menasce email: podcast@victorjm.com

In his book "Building an Elite Organization", Don Wenner, the CEO of DLP Real Estate Capital, documents some of the principles that he has used to grow his company and has earned the honor of being on the Inc 5000 fastest growing company list for 8 years consecutively. Many of the ideas in the book are echo’s from other works. Jim Collins, the author of Good to Great is quoted frequently throughout the book. I met the author at an institutional investment conference. His company is well along the path of growth that our own organization shares. For that reason, I felt that it makes sense to learn from those who have paved the road before you. The folks at DLP also use ideas from the book “Traction” by Gino Wickman. We have reviewed that book on this show in the past. We too use the systems from Traction in our company. I consumed the book almost like a practical users’ guide to these other books that I have previously read and implemented in our business. What I learned from this book is that our implementation of these systems has flaws. I already knew that our implementation had flaws, but I didn’t necessarily know what the flaws were. ------------------- Host: Victor Menasce email: podcast@victorjm.com

Today is another AMA episide (Ask Me Anything). Michael writes: "Hey Victor, I have been investing in multifamily properties for over a decade, mostly in smaller deals but a few in the $1M to $2M range.  I've been encouraged to do cost seg studies many times over the years and cannot get the math to pencil out.  As an actuary by trade, I have a high degree of confidence in my analysis, but am wondering if I'm missing something or if this works in some cases.  Have you had any deals where completing a study made sense?  If so, can you explain why it made sense?"

Today's question comes from Robert who askes: What is your criteria for selecting guests who appear on the weekend edition?  How do you vet podcast guests for your show? ------------------ Host: Victor Menasce email: podcast@victorjm.com

On today’s show we are talking about what is happening in the economy. There is a narrative of bumpy landing, to a soft landing, and now more recently, no landing. It seems as if the market is convinced that the US economy is strong and is going to emerge from this deceleration into recovery. The stock market is booming which quite frankly is delusional optimism. We have seen a rapid increase in long term interest rates for both the 10 year and the 30 year US Treasury. The question is “Why”? ----------- Host: Victor Menasce email: podcast@victorjm.com