Real Estate Espresso

On today's show we are looking at some of the changes happening in the global monetary system that I believe  are being largely misunderstood. The Genius Act is enabling the US the extend its reach internationally which could have the effect of strengthening the US position as the world reserve currency. Think about the demand for dollars or any stable currency if you live in a country that has high inflation. The people in Turkey or Argentina or Venezuela along with numerous other countries are experiencing very high inflation. Inflation in Turkey is close to 50% year over year. Argentina is 98% year over year, and Venezuela is a whopping 400% year over year. The average person on the street aims to spend their pay check fully because they know that whatever they purchase will be more expensive next week. If they can't realistically spend all their cash, they will find a way to exchange their local currency for US dollars or Euros. But mostly US dollars. The problem with is that the folks can't open a USD denominated bank account with their local bank. They end up going to expensive currency exchange businesses and pay a sizeable premium to convert their Turkish Lira into USD. If you walk the streets of Istanbul, these currency exchange businesses are virtually on every street corner.  This year the US Genius Act was passed into law. Most people don't know what the Genius Act is. Some know that it is something about crypto. But they're not out there buying their groceries with bitcoin or Etherium. So who cares. What does this have to do with me? The thing to remember is that Stable coins are programmable. That means there is a history of all transactions on the blockchain and the US government can maintain both oversight and control over the transactions. Today, the vast majority of Stable coins are denominated in USD. That means the adoption of stable coins for commerce outside the US will actually extend the reach and entrenchment of the US dollar as the world's reserve currency. The fact that these coins are not issued by the US government will create the perception that these coins have the best of both worlds. They are US dollar denominated. They are backed by either US dollars or by US Treasuries. But they are not a CBDC. The idea is that these coins are all about extending the reach of the US dollar. There's currently 180 FIAT currencies in the world. There is no market for exchanging Guarani from Paraguay into Japanese Yen. All of this happens today through the US dollar. Stable coins denominated in US dollars are the key to further entrenching the dollar as the world's reserve currency. I believe these will have a higher international adoption than coins which are under the direct control of the Chinese Communist Party. ------------**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)  

David Foster is based in St. Petersburg Florida where he is a princpal at The1031Investor.com. On today's show we are talking about going beyond shelter from capital gains. The 1031 can be used to shelter from depreciation as well.To connect with David, visit http://the1031investor.com/about-us/----------**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)  

Our book this month is "The Art of Saying No" by Damon Zahariades. Zahariades begins with a sobering analysis of why this simple, two-letter word is so cripplingly difficult for so many. He posits that our cultural conditioning, our deep-seated need for approval, and an often irrational fear of conflict combine to make "yes" the path of least immediate resistance. This path, however, leads invariably to the dark wood of resentment and burnout.The true value of The Art of Saying No lies in its transition from diagnosis to action. Zahariades provides a robust, immediately deployable toolkit of refusal strategies. He understands that one cannot simply begin shouting "NO!" at one's colleagues and loved ones. It requires finesse, a degree of social judo that redirects the requestor's energy without causing undue damage to the relationship.He advocates for the concept of the "Guilt-Free No," a refusal delivered with kindness and clarity, often accompanied by a brief, non-negotiable explanation. The key, he correctly identifies, is to separate the person from the request. You are not rejecting your friend; you are rejecting the additional commitment that robs you of your time. -------------**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)  

This week, a whole bunch of new capabilities were rolled out with no fanfare of announcements, by none other than Google. These capabilities were rolled into Google earth where there is a whole host of new layers that can be enabled. Some are included in the free offering, and the rest require an upgrade to either their Professional service or their professional advanced service, The Pro account costs $75 / month per user and the Pro Advanced is $150 per month. When I look objectively at what is being offered, the price is high and the services are underwhelming compared to other much more comprehensive offerings in the market. So when I look at it objectively, the Google offering is noteworthy because it is being offered by Google. The offering surprising because it is so far behind what other startups are offering in the market. If google wants to get serious about playing in this space, they certainly have the scale and ability to compete. But the market for these types of services is small compared to the general consumer market. For that reason, I doubt that Google will aim to dominate the space. -----------**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)   

Email: podcast@victorjm.com and put the word "Bonus" in the subject line. There are two months remaining in the calendar year. For many that means some last minute tax planning. This year re-introduced bonus depreciation in the US at 100% write-off. If you are looking to take advantage of this lucrative tax strategy, then you might consider one of our industrial or storage investments that would qualify for bonus depreciation this year. We have several projects that could be a potential fit to your investment portfolio. If you're interested in learning more, send an email to podcast@victorjm.com and put the word bonus in the subject line. That's podcast@victorjm.com and we can hop on a quick discovery call to see if there is alignment between your investment objectives and our projects for which we are currently raising capital. Any investment would be for accredited investors, by prospectus only and in compliance with US securities regulations.--------------On today's show we are talking about the question of maintaining a function in-house, versus outsourcing. This is a classic question that every business will deal with at one time or another. On today's show I'm going to outline the criteria that I believe should come into play when making a decision to staff internally versus outsource.Let's start with the four different ways that a person might become attached to your organization. Partner or executive team memberEmployee, either full time or part timeContractorAdvisorWhich of these you are going to choose is a function of the role you're looking to fill within the organization. The first question to answer is whether the function is core to the business, or not core. --------------**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)  

Rates continue to fall today. There were two rate announcements, only hours apart. This morning the bank of Canada reduced its benchmark lending rate by 0.25%. Weakness in the labor market was the top cited reason for the drop in rates. This afternoon at 2:30, Chair Powell stood at the podium as he does every six weeks and announces the results of the two day FOMC meetings. The Fed dropped their benchmark lending rate by 0.25% to a target range of 3.75% to 4%. This is the second consecutive rate cut by the Fed, a move aimed at supporting a labor market that has shown signs of weakening even while inflation continues to run above the Fed's 2% target. When you start to look at all of the corporate layoffs and the rising unemployment rate, it is very reminiscent of the 2001 recession that was led by layoffs in the tech sector.  So while the news of lower interest rates is welcome, the rates are a reaction to a faltering economy where just this week alone, more than 75,000 people lost their jobs. I'm not counting the smaller layoff announcements of only a few hundred people in that total.  These are big numbers. You don't see these kind of numbers in a growing economy. So the likelihood is high that the US is already in recession, but it is politically unpalatable to say that out loud. What's more, there is no data being collected or reported, so the economy can limp along under the cover of the government shutdown.  Then there is the government shutdown itself. Those families are not getting paid and you can guarantee that they've cut back on discretionary spending. That's a few million people who are not traveling to resorts or dining out in fancy restaurants.------------**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 search the Real Estate Espresso Podcast. With over 2800 episodes there is a significant body of work. We have many loyal listeners and I often hear about past episodes from listeners. Searching 2800 episodes for something you have heard in the past can be a daunting task. So much so that most people won't even try. So we have made the investment in creating a custom AI tool, specific to the Real Estate Espresso podcast.Let's imagine that you want to know what did Victor have to say about a particular topic, Victor AI will summarize the information in the podcast on that topic. For example, if you asked about what I had to say about industrial property metrics in Dallas, it will summarize the content and also take you to those specific episodes on that topic. We are undergoing internal testing before releasing it to the general public. But we expect to formally release it in the coming weeks. ------------**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)  

CLICK HERE to learn more about our Bradenton Crossing project.Have you finalized your tax strategies for 2025? There is still time in 2025 to take advantage of bonus depreciation which can result in huge tax advantages for the savvy investor. That's the icing on the cake for an otherwise really strong investment opportunity. The opportunity is a 35 acre project in Bradenton Florida. The property is anchored by a charter school that has 800 students and is income producing. The student's are not eligible for depreciation, but the buildings are. If you'd like to learn more, send an email to info@ystreetcapital.com and put the word Bradenton in the subject. Our team will get in touch to give you more information. Send an email to info@ystreetcapital.com.-----------On today's show we are talking about energy and global monetary rivalry.

Max Hansen is a senior manager with Accruit and leads organizations in Denver and in Montana. On today's show we are talking about some of the more sophisticated ways of using the 1031 for sheltering gains from tax.To reach out to Max, call 800-237-1031, or visit Accruit.--------------**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)  

Dave Seymour is based in Boston where he became known for the star of the hit A&E TV show Flipping BostonTo connect with Dave, reach out to him directly at:https://www.linkedin.com/in/daveseymour343/or on his website at https://www.freedomventure.com/

On today's show we are talking about the impact of data centre infrastructure on the cost of new construction for single family homes and apartments. Data centres are power hungry beasts and building them will require a lot of electricians. The concern is that the US does not have enough electrician now. Many of those electricians are nearing retirement and the number of new entrants to the trade are not replenishing those who exit. There are so many electricians required for data centres that there will not be enough for the scale of work required across all sectors. The net result will be a massive increase in the cost of building housing because of the labor being siphoned off to build data centers. That's the theory. So on today's show we are going to analyze whether that hypothesis is indeed true. Will we really have a shortage of electricians and what do we need to change in the way we build homes in order not to be facing massive increases in cost? Let's start by examining how much demand is being added to the network. We will try to calculate how many electricians will be pulled out of the market just to service the data centre industry. ------------**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 interact with a lender. If you're in the game of real estate, chances are you've borrowed money. Lenders come in all shapes and sizes from the traditional community and regional banks, to the larger agency debt like Fannie Mae or Freddie Mac, to the government sponsored loans from HUD or SBA. There are then numerous private options including debt funds, CMBS loans, preferred equity, CPACE  and mezzanine lenders. They all have one thing in common. They will go through an underwriting process that requires you to provide documentation about the borrower, the guarantor if it's a recourse loan and the property. Those requirements will be listed generally on a term sheet, and then perhaps later in the process in a commitment letter, or a closing checklist.On today's show I'm going to share what we believe are best practices, or at least I'm going to share how we manage this process in our development company. ------------**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 best use artificial intelligence in your daily business. AI is not good at producing a finished work product that you would be happy to deliver to a customer. There may come a time when that is true. But today, if you are delivering something of true value, you need to be creating at least a portion of that work. I have not encountered a scenario where an AI tool was able to take something from start to finish in one step. In frustration I took the idea produced by Gemini into a simple image editor. I uploaded the image, and typed in the 28 words. I spent a coupe of minutes formatting the text and in the span of about 4 minutes I had a finished product, fully formatted and ready to send. I had wasted about half an hour trying to get AI to produce a finished product. The real value of the AI tool was in accelerating the creative process and as a brainstorming tool. That first step was genuine help. The rest was an exercise in frustration and wasted time.  When it was clear that creating the final product could be done in a matter of minutes, essentially editing 28 words, I should have jumped off the AI train and reverted back to the old fashioned, but tried and true method of editing a file. ------------**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 cutting corners in quality assurance. We are all extremely busy. That's certainly true for me. My average day consists of 5-6 hours of scheduled appointments. Against that backdrop, it's difficult to get anything done that requires focus time. So when you're too busy, there are tempting shortcuts. These include delegating tasks to other people in the organization, and sometimes taking advantage of tools like artificial intelligence to save time in the review process. When I was in the world of tech product development, we used to attach a cost to a defect making its way into a product. Depending on when the defect was detected, the cost could be higher or lower. A defect uncovered early in the design phase was nearly free. There was almost no cost to that defect. If a defect made its way out into the field and ultimately resulted in an outage of the telecom network, the cost of that defect was massive. The earlier in the process a defect is uncovered, the lower the cost and the later in the process, the higher the cost. Not surprisingly, nearly 40% of the investment in the product development was actually spent on quality assurance. That sounds like a high percentage and it is. ------------**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 unpacking the critical details every sophisticated investor, developer, needs to understand about the different types of flood plain designations and how wetland mitigation can make or break your deal.First, why do people even want to develop in flood plains? For one, the land doesn't usually present itself as a flood plain. It's completely dry most of the time. But, like every opportunity, there are layers of risk and regulation you need to run through.The U.S. government, via FEMA, essentially maps out risk using what's called Flood Insurance Rate Maps, or FIRMs. Picture these as overlays on your site plan that tell you how often the water is likely to rise and cause problems.100-Year Floodplain (SFHA - Special Flood Hazard Area)500-Year FloodplainFloodplain X - minimal riskBut what is your flood map is out of date? 75% of existing FEMA maps are out of date. As you know, the US government is in a budgetary shutdown, with no signs of a quick resolution. Even if you are not relying on government funding for a loan, if your property is in a flood plain, your lender will require paperwork from FEMA before they can close the loan. So the government shutdown means your loan cannot close until the government re-opens FEMA gets caught up on their backlog of requests.------------**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)  

Jon Yoo is with Convoy Home Loans based in Los Angeles. They specialize in DSCR Loans for commercial investors. On today's show we are talking about some of the market dynamics. To connect with Jon, visit https://convoyhomeloans.com/ or email him at info@convoyhomeloans.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)  

We have two guests on today's show. Garrett Sutton is well known as one of the Rich Dad advisors for asset protection. His son Ted has joined the practice and is going to succeed Garrett in the long term. On today's show we are talking about some of the new legislation at the state level that will affect investors. So far only New York has enacted its own corporate transparency act. But there are other states that are considering it. The result could be a complex patchwork of regulations that will make compliance much more complicated than a single federal statute. To connect with Ted and Garrett, visit https://www.corporatedirect.com/. They also have a new Youtube channel called TENERO. ---------------**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 the mobility of wealth. Everyone I speak with from NYC is extremely fearful of the change that seems likely in the Mayor's office next month based on early polling results. Many are considering leaving the city. Even those who want to continue to work in the city are moving to nearby cities and states. Some are going to New Jersey. Some are going to Connecticut, others to Pennsylvania.NYC has become a tale of two cities. There is a lot of wealth in Manhattan specifically. There are about 350,000 millionaires concentrated in a small  radius on the island of Manhattan. There are about 120 billionaires in NY. But New York is about more than just a financial capital. It's a city of 8.5M people spread across the five boroughs of Manhattan, Brooklyn, Queens The Bronx, and Staten Island. Last night's mayoral candidate debate pretty much sealed the outcome of the election which is only 19 days away. Frontrunner Zohran Mamdani is an eloquent speaker. He speaks nonsense with conviction, with stories, and with data to back up his nonsense. A great orator can be persuasive. I understand that people who don't understand money think that someone else will pay for their sense of entitlement. Free stuff can be attractive on election day. In the 1970's it was hard to believe that NYC could recover. It seemed doomed to a life of decay, crime, and outright chaos. We have experienced the resurgence of the city, slowly at first under Mayor Ed Koch, then more recently under Mayor Rudi Giuliani and Michael Bloomberg. This podcast is about real estate and real estate investing and not NYC politics. Why are we talking about this? Because businesses are not returning to NYC. Things are going to be ugly in NY for a while. If wealth is leaving NY, the obvious question is where is the wealth going? Where are these people moving? Who will be the biggest beneficiaries of New York's loss?------------**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 yesterday's show we talked about how AI might be influencing the functional obsolescence of industrial warehouses. On today's show we are looking at another aspect of AI and how it could affect the value of industrial real estate. On today's show we looking at how transportation is going to evolve with the advent of autonomous trucking. Will this have an impact on industrial property? Now this sounds like science fiction and something that is going to be in the distant future. But it's much closer than you think.Many of these new trucks will also be electric vehicles. I don't know when Tesla's semi truck will hit the market in a big way. The first production Tesla Semis were delivered to PepsiCo in December 2022. Since then, a small number of trucks have been delivered to a handful of other customers for real-world testing and fleet integration.Let's put this in perspective. The power supply to charge just one Tesla Semi is the same power required to supply about 988 homes. Let's say that you want to be able to charge a couple of trucks at a time and you need to add 1000  If your warehouse is not sitting next to a major power source, how are you going to find the spare power capacity for 2000 homes at the site of your industrial warehouse? If you can't get the power, then your warehouse is going to be functionally obsolete.------------**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)  

AI is continuing to make headlines on nearly a daily basis. But this is a real estate podcast, not an AI podcast. We need to assess the impact of AI on real estate. On today's show we are looking at whether AI will change the design of industrial warehouses and render some of the existing warehouses functionally obsolete. The introduction of robotics has profoundly changed the design of industrial warehouses, moving them away from layouts optimized for human movement to a new paradigm centered on efficiency, density, and data-driven automation. This shift is driven by the capabilities and requirements of different types of robots, leading to significant changes in space utilization, infrastructure, and overall workflow.So all of these changes will impact the design of a warehouse. Your 50 year old warehouse might require too many functional changes to adapt to this new world and just might be functionally obsolete. ------------**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: "How do municipalities allow zoning and use applications that are filed by an entity that doesn't own the property? Can a group of citizens argue that the applicant doesn't have property rights when they don't own the property?"----------**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 need to be paying attention to many aspects of the economy. After all, we are investors first and foremost and real estate investors second. Our investments do not occur in isolation. They are influenced by the surrounding environment. If the stock market rises, how does that affect real estate? If the stock market crashes, how does that affect real estate? On today's show I'm going to predict a stock market correction and using history as a guide, predict the impact on the economy as a whole and real estate in particular. A stock market correction (a decline of 10% or more from recent highs) can trigger or accelerate an economic downturn.-------------**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)  

Keith Weinhold is based in Anchorage Alaska. I had the pleasure of visiting with Keith on his home turf a few weeks ago where he gave my wife and I a tour of the city. On today's show we are talking about divesting fully from Anchorage and redeploying capital into the Tampa Bay area. Tampa and Anchorage are almost extreme opposite ends of the country. A unique element of Keith's strategy has been to invest in new construction properties. The benefits include lower maintenance and higher tenant retention. Keith is the host of the "Get Rich Education Podcast", running weekly since 2014. You can connect with him 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)  

Hugh O'Reilly is based in Toronto where he has a background in law and as the head of a major pension fund. Today he advises technology startups in the property tech space. On today's show we are talking about Landlogic.ai and what is possible using these advanced tools. To connect with Hugh, visit https://www.landlogic.ai/ or email him directly at hmboreilly@gmail.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)  

On today's show we are talking about the impact of recent US Federal Government policy changes and then the government shutdown on real estate.There are several government agencies involved in commercial financing. These include the US Department of Agriculture, the department of housing and urban development, the department of Veterans Affairs, the Federal Housing Finance Agency (FHFA) and the Small Business Administration. Loan applications involving Fannie Mae and Freddie Mac also rely on reports generated by government agencies that are currently closed. All of these sources of financing are either delayed or are at a standstill. There have also been numerous policy changes that have affected loan approvals since the most recent federal election. How could this be a problem? -------------**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)  

ALN Apartment Data published a new national report this week. It's hot of the press. Two major developments have defined the multifamily sector this year, and both have been widely felt. The first, a deceleration in new apartment supply, was anticipated as the 2024 construction boom reached its peak. The second, a broad resurgence in apartment demand, has exceeded nearly everyone's expectations.While the slowdown in new deliveries was written into the forecast, the scale and breadth of the demand recovery have caught the industry by surprise. This is not just a rebound — it's a synchronized surge across asset classes, market tiers, and regions.Through September, over 580,000 net new units have been absorbed nationwide. That's more than double last year's total through the same point in time and just shy of the exceptional 2021 figure.--------------**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)  

WEBINAR REGISTRATIONI'd iike to invite you to learn more about an exciting opportunity located in Bradenton Florida. Bradenton is next to Sarasota for those of you who are familiar with Florida. This market has an industrial moratorium that is driving one asset class to new heights, specifically light industrial. This 35 acre property, right in the middle of Bradenton has an existing Charter School on 11 of those acres and 24 acres of land that we are developing.  We are hosting a webinar on Wednesday October 8 at 7PM Eastern time. This opportunity is only open to accredited investors residing in the US in compliance with SEC regulations. To learn more, click on the link in the show notes and we will see you on Wednesday evening, October 8 at 7PM.-----------Today's question comes from Irene who writes:I own a portfolio of short term rentals here in Kihei Maui. Most of these are condo's across the street from the beach. The HOA has undertaken replacement work of some of the plumbing infrastructure which required the opening up of walls and replacement of pipe. In the process of demolition, they destroyed the bathroom cabinetry, which quite frankly was not necessary. As they were nearing completion we started to replace the cabinetry. The security team from the HOA then notified us that we needed to stop work because we did not have a building permit for the improvements. I'm not an expert in construction. How should I be responding to the HOA and a building inspector if the building inspector shows up. -------------**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)  

WEBINAR REGISTRATIONOn today's show I'm speaking with Jack Tucker on why there is an acute shortage of industrial land in Bradenton Florida.-----------------**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)  

Bradenton Industrial Webinar-----------I'd like to invite you to learn more about an exciting opportunity located in Bradenton Florida. Bradenton is next to Sarasota for those of you who are familiar with Florida. This market has an industrial moratorium that is driving one asset class to new heights, specifically light industrial. This 35 are property, right in the middle of Bradenton has an existing Charter School on 11 of those acres and 24 acres of land that we are developing.  We are hosting a webinar on Wednesday October 8 at 7PM Eastern time. This opportunity is only open to accredited investors residing in the US in compliance with SEC regulations. To learn more, click on the link in the show notes and we will see you on Wednesday evening at 7PM. --------------On today's show we are looking back in history for some of the narratives that surrounded the adoption of new technology. The year was 1999. At the time, it seemed like the internet was the answer, what's the question? Companies were spending hundreds of millions burying optical fibre anywhere they could. After all, the internet would need lots of fibre to carry all of that traffic. There was tons of investment in the core of the network to carry all of this traffic. I personally was an executive in the tech industry. I left Nortel in 1997.  The next company I was at was Tundra Semiconductor. We were designing microprocessor core logic chips that were used in all kinds of applications. One of our customers was Motorola who was shipping 250,000 cellular base stations a year. These would eventually be upgraded from the GSM base station to the Edge  base station and then eventually the 3G base station. Back in those days, the emphasis was on building out the core of the network.Later in my career I took progressively more senior positions in the tech industry. By 2004 I was VP of Engineering at AMCC that was headquartered in San Diego. I was also President of AMCC Canada.  My company had raised about $1B in the public markets at the height of the Dotcom frenzy. As a result, we had all kinds of startup companies parading through our board room with the hopes of getting acquired by a company with a ton of cash.  I learned to ask three very simple questions of every startup company. The answer to these questions revealed more than anything else. The technology, the features, the cool factor, none of it mattered. -------------**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)  

Samuel Morgan Wiseman is based in Scottsdale Arizona where he is a principal at Protopian Capital. On today's show we are talking about how to structure deals involving blended capital from private foundations as part of the capital structure. To connect with Samuel or to learn more, visit https://protopiancapital.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)  

Ben Reinberg is based in Newport Beach. He specializes in industrial and in medical office. On today's show we are talking about the factors influencing medical office. To learn more and to connect with Ben, visit https://www.alliancecgc.com/ or visit his personal website at https://www.benreinberg.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)  

Bradenton Webinar Registration⁠ I'd iike to invite you to learn more about an exciting opportunity located in Bradenton Florida. Bradenton is next to Sarasota for those of you who are familiar with Florida. This market has an industrial moratorium that is driving one asset class to new heights, specifically light industrial. This 35 are property, right in the middle of Bradenton has an existing Charter School on 11 of those acres and 24 acres of land that we are developing.  We are hosting a webinar on Wednesday October 8 at 7PM Eastern time. This opportunity is only open to accredited investors residing in the US in compliance with SEC regulations. To learn more, click on the link in the show notes and we will see you on Wednesday evening at 7PM. -------------On today's show we are looking at the continuing signs of weakness in the US economy. Of course with the government shut down , there are no numbers coming out of the BEA, or the BLS. Today would have been the monthly jobs report which consists of two reports. There is the headline employment report, sometimes called the establishment survey and the household survey. The employment report made headlines in a significant way when the numbers for the past year were revised down ward by over 900,000 jobs. The financial markets have come to rely on these reports when it comes to bidding on interest rate futures. The theory is that if the economy is strong and employment is strong, then the Fed will put more emphasis on suppressing demand by raising the cost of capital. This is the so-called hawkish stance where fighting inflation takes centre stage. If the economy is weak and jobs are disappearing, then the Fed in theory should take a more stimulative approach to reduce the cost of capital and encourage hiring. This was the stance in the last FOMC meeting which resulted in a 0.25% rate cut. So we have no data coming out and the market doesn't really know what to do. But there is data coming from private sources that are well respected. Payroll processing company ADP produces are regular report based on the aggregated and anonymized payroll data of more than 26 million U.S. employees. This week's report showed that the US economy shed 32000 in the month of September. ADP gathers their data weekly.We can confidently predict another 0.25% rate cut at the next FOMC meeting at the end of October and then a further rate cut at the December meeting. For those of us in real estate, this is good news. It means those variable rate loans that are indexed to SOFR will see a reduction of 0.5% before the end of the year. ----------**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)  

Bradenton Webinar Registration I'd iike to invite you to learn more about an exciting opportunity located in Bradenton Florida. Bradenton is next to Sarasota for those of you who are familiar with Florida. This market has an industrial moratorium that is driving one asset class to new heights, specifically light industrial. This 35 are property, right in the middle of Bradenton has an existing Charter School on 11 of those acres and 24 acres of land that we are developing.  We are hosting a webinar on Wednesday October 8 at 7PM Eastern time. This opportunity is only open to accredited investors residing in the US in compliance with SEC regulations. To learn more, click on the link in the show notes and we will see you on Wednesday evening at 7PM. ------------On today's show we are talking a look at the latest research of new construction and whether there are constraints that are driving costs higher, even as fewer projects are getting built in the current environment. Specifically, I'm summarizing from research papers on the topic. These come from https://www.researchpublish.com/upload/book/The%20US%20labor%20Shortage%20in%20Construction%20Industry-27122023-8.pdfhttps://billd.com/2024-market-report/https://www.agc.org/2024-construction-hiring-and-business-outlook--------------**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)  

Our book this month is the second book in a two part series. The first book is called "The War of Art" by Stephen Pressfield. The second book is Turning Pro. You can think of the first book as the statement of the problem and the second book as the solution. The relationship between Steven Pressfield's "The War of Art" and "Turning Pro" is best understood as a two-part guide to the creative process: one book identifies the problem, and the other provides the solution.-------------**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 scarcity through zoning. I often have discussions with investors about whether things should be easy or not. If it's easy, anyone can do it. The barrier to entry is low and eventually the market will become saturated. We see this regularly in cities like Houston where there are no zoning restrictions. This means you can put anything anywhere, and people do. For the most part, the market forces seem to take care of things and common sense generally prevails. But if you wanted to put a daycare next to an oil refinery you could. If you wanted to build a strip club next to a church, you could. The good news is that you face very few regulatory barriers. That makes it easy, or at least easier. As long as the municipal utilities district has capacity and commits to serve your property, you can build. As long as your design meets the requirements of the fire Marshall and the building code, you can build. The good news it's easy, and the bad news is it's easy. ----------**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 what is happening in precious metals and the narrative attached to these recent record setting prices.This past week gold has hit new all time record highs of just above $3800. Price peaked at $3820 an ounce, surging nearly $40 an ounce in the opening moments of trading on Monday morning. So far gold is up 10% in the last 30 days and up 41% in the past year. Of course the purists out there will probably argue that gold has not risen. It's the dollar that has fallen in reference to gold and that gold is the only true historic store of value.We are seeing similar moves in the other benchmark metals. Silver also hit 14 year highs this week above $47 per ounce as of the time of this recording. That is an increase of 20% for the month and 45% in the past year. It's a similar story for platinum and palladium. Platinum is up 18% for the past month and 58% for the past year. Palladium is up 17% in the past month and 27% in the past 12 months.We know that several things happen in an inflationary environment. Purchasing power for those on fixed income gets wiped out. Savings get wiped out and debt gets wiped out. We can also see asset prices rise unless we are talking about a Venezuelan style inflation where asset prices collapse due to a complete breakdown of the economy.So in an inflationary environment you don't want to be the one holding the debt. In fact the people at Morgan Stanley just updated their recommendation for a balanced portfolio. The traditional Wall Street version of the balanced portfolio has been 60% stocks and 40% bonds. They never mention real estate of course because they can't sell real estate and they don't make any money if you buy real estate.-------------**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)  

Marcy Sagel is based in Baltimore, Maryland where she runs MSA Interiors. Her firm specializes in design of multi-family apartment projects nationwide. She is working at a very high level with some of the most notable developers in the nation. To connect with Marcy, visit https://msainteriors.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)  

Shane Pogue is based in Dallas Texas where is specializes in Investigative Due Diligence. He helps investors with their due diligence process. To connect with Shane, reach out to him on LinkedIn at https://www.linkedin.com/in/shane-pogue-6b900a11a/--------------**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)  

I'd like to invite you to our upcoming Build To Scale Mastermind Nov 9-13 in Tulum Mexico. This exclusive four day event is for you to learn how to scale your business and your life. This is an opportunity for you to spend 4 high quality days with the leadership at Y Street Capital and take your investing business to the next level. To learn more, click HERE.------------On today's show we are looking at the value of a piece of property that has a rail connection on it. When it comes to transportation and logistics, rail is significantly less expensive than trucking. Rail costs about $0.02 per ton mile versus about $0.10 per ton mile or more when transporting by truck. For bulk commodities, and for shipping containers rail can be much less expensive. That means that transporting a 20 foot long shipping a container by truck from Los Angeles to New York would cost about $7,500. By comparison, that same trip by rail would cost about $1,400. The savings are substantial. But once you get the rail car to the destination, you still need to switch from rail to road for the last mile, or perhaps the last few miles. This short haul trip is going to be disproportionately expensive. --------------**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)  

Join us at the Build To Scale Mastermind in Tulum Mexico on November 9-13. This is an opportunity to spend 4 high quality days with the leadership at Y Street Capital and learn how to scale your business and your life. Click HERE to find out more.--------------The office apocalypse has been felt across most major markets worldwide. The impact of the pandemic was to reduce the need for conventional office space. There are still people working from home who were in an office environment in 2019. But slowly, demand for conventional office space is normalizing. We are seeing it in multiple markets. On today's show we are going to look at San Francisco. This city took a major hit in office vacancy. Several commercial real estate reports indicate that the peak office vacancy rate in San Francisco was 36.6% in the first quarter of 2024, according to CBRE. We've seen a turnaround in leasing activity with net absorption of 779,919 square feet. Listen to find out who is leasing and why. ---------------**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 reduce the cost of construction. Is it worth your time to look for savings in a construction project, or should you just accept that things cost more? On one of our projects we have been going through a value engineering exercise. This is where you look closely at the design specifications and find ways to save money in the project without compromising the end product. You can sometimes face escalating costs because of the assumptions being made in the project. Our team has been meeting twice a week, and sometimes three times a week to pull cost out of this one particular project. I'm going to show you a few ways in which we are saving money on a large scale. What I'm going to share are real life examples from one of our development projects. We saved nearly $1M in the budget in about an hour of work.-------------**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 show, we are talking about the impact of the newly announced $100,000 fee associated with the H1B visa to the United States. According to my research, historically the United States had admitted 65,000 H1 B visas per year with an additional 20,000 visa for those holding advanced US degrees.Anytime there is a major policy shift. The marketplace will adapt and find a new way to optimize the allocation of talent. Silicon Valley was cited as one of the Main reasons for the policy change.The tech industry has seen significant layoffs over the past year. Companies like Microsoft, Amazon, Google, Facebook have all released tens of thousands over the past year.The policy change will probably see some of those laid off workers getting rehired and those international workers covered by a visa, now a very expensive visa, being sent home to their country of origin.The largest user of H1B visas is Amazon with over 14,600 visa holders. At $100,000 a year each, this would cost an additional $1.4B in fees to the US government. I personally would be surprise if any company would just roll over and pay for an additional $1.4B in fees. The top users are Amazon, TCS from India with about 5500, Microsoft with a little over 5100, Meta with about 5100.Even Walmart has about 2400. I would bet that Walmart would move those positions to their software design center in Toronto or Ottawa and save $239M dollars with zero loss of productivity. When I ran an engineering organization, we did not use the H1B Visa program to import labour per se. We used the program to bring a few people from some of the remote design centres and immerse them in the culture in our Sunnyvale office so that they could in turn cross pollinate the culture across the organization. It gave that individual a foreign expat assignment and at the same time improved the cohesiveness between the different design centres around the world. They would later return to their remote design centre. I personally believe that the use of the H1B Visa will drop to nearly zero with the imposition of this new policy. That means another 100,000 people in high paying jobs will likely leave the US. These people will probably continue to work for the same company from their country of origin, if they are an individual contributor. If they are in a managerial role, then the relationship gets more complicated. I truly can't think of too many companies that will be willing to pay that $100,000 fee for the visa. This year 2025 was the first year in which US population has shrunk in almost 100 years. Shrinking population means a shrinking economy, especially when you consider that 70% of the GDP is based on consumption. ----------**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)  

There is a seismic shift—not in real estate, but in a sector that will fundamentally reshape how we think about how health care services are delivered. That in turn will have an impact on the needs for real estate in a health care setting.Family medicine has evolved. When I was a child, the family doctor was a self employed professional. Their office had one name on the door, and behind the waiting room was a sliding glass window for the receptionist, who often also doubled as the doctor's assistant. That model is completely obsolete and has been replaced by the family health team clinic which has several owners, numerous associates, nurses, a nurse practitioner, and even other services like a dietitian, a blood lab, an imaging lab. All of these things under one roof in the name of efficiency. Increasingly, these clinics are not owner operated, but instead are associated with a larger healthcare provider. But just like technology has disrupted retail and media, it's now coming for healthcare.The first wave was simple telehealth—video calls with your doctor. This was multiplied out of necessity during the pandemic. That was a good start. It saved a trip for a quick follow-up or a prescription refill. But it is limited. The game changer is the technology that brings diagnostic equipment to the patient. Some health care systems have already adopted the technology. Somewhere between 60-80% of office visits can be handled by telehealth, augmented with the diagnostic equipment. The change is coming, and it is clear as day. Commercial real estate has taken a beating since the pandemic. Medical office has been one of the remaining segments of stability in the office market. I can't tell you how quickly the technology will penetrate the market. I predict that within the next five years, today's existing technology will achieve sufficient market penetration that we will see a significant reduction in medical office footprints. ------------**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)  

Jon Ostenson is based in Atlanta, Georgia where he specializes in brokering business. On today's show we are talking about businesses the break the franchising stereotype. Many are complementary to real estate investments. To connect with Jon and to learn more, visit https://franbridgeconsulting.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)  

Chuck Cuda is focused on redevelopment of deeply distressed inner city retail projects in the Kansas City area. The focus is on value creation and removal of blight. This is a strategy that could be viable in most US cities. To connect with Chuck and to learn more, visit https://opescre.com/ or email him directly at cuda@opescre.com. Also check out his new book "The Ego Strength" available on Amazon. -----------**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 talking about the role a general contractor. On a large project there are a lot of moving parts. There can be several subcontractors working at the same time on different aspects of the project. You can have plumbers in one building, electricians in another, windows being installed in another, and exterior cladding being installed with telescoping lifts. At the same time you can have drywall, painting and finishing happening in other parts of the project. There is just a lot going on. A big part of the job of the general contractor is to monitor progress for the scope of work in each of these areas. They need to be monitoring the staffing that the subcontractors are bringing to the project and setting clear expectations with the subcontractors on their level of staffing on the project. Some things do take time. Nine women can't make a baby in a month. But you can improve the progress with nine times the number of drywallers, nine times the number of painters, and nine times the number of carpenters. Construction schedules are very compressible. ---------**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 going to take a look at the Federal Reserve's announcement on Wednesday of this week. There has been lots covered about this on virtually every news channel.  What I'm covering hopefully is different from what you might be hearing. All eyes were on the Federal Reserve today. But the Bank of Canada also cut their key lending rate by 0.25% today bringing the Canadian central bank's rate down to 2.5%. Most Canadian banks followed the rate announcement with a cut to their prime lending rate of 0.25% down to 4.7%. This is the rate that Canadian banks charge to their customers. In the summer of last year, banks were charging 6.7% for loans. Today, that's 4.7%. This makes a difference. While the news is welcome, This rate cut is a reflection of economic weakness in Canada which has been impacted by the trade war with the US. Canada's unemployment rate is high at 7.1%.While the US unemployment rate is officially 4.3%, we have to remember that the BLS has tinkered with the definition of unemployed over the years. They still do report the numbers as they did in the 1970's and 1980's. This is the U6 metric which if it were compared to the unemployment rate back then, would be at 8.3% in the US.-------------**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 is another AMA episode (Ask Me Anything). Our question comes from Greg who writes:After listening to your recent segment on oil production data, it does not seem any data from the US government is accurate. We've known for a long time the jobs data is flawed. It would seem there are much better ways of collecting data. Is this simple incompetence or are there anterior motives for publishing bad data; additionally, is the data from other developed nations this bad? Thank you for your insight. Love the show.--------------**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 to connect the dots between new home construction, demand for lumber, and home sales. We are answering the question, Is this a possible boom for new rental properties? So here we are going into the fourth quarter with several headwinds and a couple of tailwinds. If you are looking to start a construction project, this might be an excellent time. Construction labor are looking for work in many markets and will price their labor more aggressively. Labor has become the dominant cost in many projects. Material prices are falling in some segments. Lumber is a great example. We have falling interest rates. I say this irrespective of what the Federal Reserve may announce on Wednesday this week. The US 10 year Treasury is hovering around 4% and the Canadian 5 year commercial mortgage bond rate fell below 3%. It's now around 2.92%. All of this happened with no central bank announcements. So if your capital costs are falling and your material prices are falling, and you are going into a seasonal slower time period with lower demand for labor, these are significant tailwinds. The only headwinds that I can see are the tariffs. The other headwinds are falling prices for single family homes. But if you're building rental apartments, and your market has the right supply and demand dynamics for rentals, this might be one of the best times to build, starting in the 4th quarter and into the first quarter of next year. You might be thinking that you're building a commercial building and you don't use much lumber. What's happening to steel prices ?OK, Let's look at that. Steel prices seem to have mirrored the same dynamic as lumber, but to a smaller degree. Prices peaked at the end of July at $3333 per ton. On Sept 11, they were at $3006 per ton. Today they've rebounded a bit to $3070 per ton. We saw the same thing in copper. Prices were $5.80 per pound for copper and they fell in a matter of days to $4.36 per pound. Today the prices are hovering closer to what has been an average for the past year at $4.60 per pound. So this is not just a softwood lumber phenomenon. ---------**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)  

We have seen some spectacular revisions in economic data over the past couple of years. We've seen it in labor data, gross domestic product, inflation. These revisions are continuing to come. This time it's in the oil markets. The narratives are failing to explain what's happening behind the scenes. On top of that, the numbers are just plain wrong. For example US growth in oil demand was underestimated by a factor of 4 by the IEA. Mexico's oil consumption has been under-reported by 100,000 barrels a day for the last five years. The US oil consumption was off by 350 million barrels in the last 3 years. These are not small inaccuracies. Yet futures prices are being determined by these narratives. ---------------**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)  

Fahad Farhat is based in Toronto where he specializes in luxury short term rentals. This conversation breaks the mold on what you think of short term rentals. He manages more than $30M of properties in Florida, Vegas, Muskoka, Toronto and several other key locations. To connect with Fahad, visit ffrealtor on Instagram or visit his website at artofgreatness.co. ------------**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)