The Real Estate Espresso Podcast

Jorge Contreras is based in Orange County California where he specializes in owning, managing, and consulting in the field of short term rentals. On today's show we are talking about the changing landscape in short term rentals and how to mitigate the risks. To connect with Jorge, visit https://www.instagram.com/thejorgecontreras/ --------------- Host: Victor Menasce email: podcast@victorjm.com

Sam Kwak is one of the Kwak brothers on the The Kwak Brothers YouTube channel. On today's show we're talking about building a following using media like YouTube. To learn more you can visit the Kwak Brothers YouTube channel at https://www.youtube.com/@TheKwakBrothers/featured ----------------- Host: Victor Menasce email: podcast@victorjm.com

Today’s AMA (Ask Me Anything) question comes from Ryan in Los Angeles who asks: What are the major components of a market feasibility study for senior housing and what do you consider strong indicators for a viable market? ------------ Host: Victor Menasce email: podcast@victorjm.com

On today’s show we are taking another look at interest rates. Global credit markets seem to be at odds with the Federal Reserve’s hawkish statements. Jerome Powell announced on Wednesday another 0.25% interest rate increase in the federal funds rate. We heard the same messages yesterday that we heard back in December at the last rate increase. The Fed set forward guidance for another rate increase at the March meeting, while at the same time stating that they are making decisions on a meeting by meeting basis. The terminal rate is forecast to be between 5% and 5.25%. But the guidance prior to the announcement was already for a 0.25% increase at the Fed 1 meeting. The market had clearly priced that expectation into the market rates. In the day leading up to the announcements, the yield on the 10 year treasury fell even further to 3.415%. The yield on the 10 year Treasury peaked in early November at 4.2%. Clearly we are in a rising interest rate environment. The Fed increases the rate at each meeting and with the Federal Funds rate in the range of 4.5%-4.75%, you would expect the yield on the longer term bonds to be increasing as well. But that is not the case. What on earth is going on? ------------- Host: Victor Menasce email: podcast@victorjm.com

Happy first of the month. On the first day of each month we review the book of the month. It’s not often that we get to reflect on timeless lessons. But that is just what “The Obstacle is the Way,” by Ryan Holiday does. The opening examples in the book draw upon Marcus Aurelius and John D Rockefeller or General Ulysses Grant. The common characteristic of these three men and many others, was an almost fearless approach to obstacles that presented themselves. This book is a reminder that some things remain true, no matter what society is experiencing. The book is based on an ancient Stoic philosophy, as outlined by Holiday. It focuses on developing a process that allows us to turn these obstacles into opportunities, instead of viewing them as crises. ----------- Host: Victor Menasce email: podcast@victorjm.com

When you buy a property, you can expect a property tax re-assessment in many parts of the country. So relying on the backward looking property taxes of the property may not be indicative of what you would pay once you own the property. Performing due diligence means developing a realistic forecast of the property taxes once re-assessed.  ------------ Host: Victor Menasce email: podcast@victorjm.com 

On today’s show we are going to look at some of the changes underway in the world of banking. I believe that banks have learned a lot about their business processes over the past two years. The pandemic forced an acceleration of the transition away from performing transactions in the physical branch to performing transactions online. We’re going to look at one major bank Wells Fargo as an example of the changes that are underway. Earlier this month, Wells Fargo told investors that it expects to cut expenses by an additional $3.2 billion this year after already trimming about $7.5 billion over the past two years. I view Wells Fargo as one of the best banks positioned to benefit from higher interest rates. In fact, almost all banks will benefit from higher interest rates, provided the default rate remains under control. Defaults can have an outsized impact on bank profitability and can cause more harm than good as we saw in the 2008 financial crisis. If I think about our own banking relationship with Chase, we have a business banker that we speak with regularly over the phone, but have never physically met in person. We took the time to open a new business account with them, a process that took several weeks. Since then we have opened many accounts with them. We can initiate most wire transfers from an online portal. Banks are also closing branches in order to respond to changing customer demographics and trends. Banks recognize that it is more efficient to concentrate a greater number of branches in densely populated urban areas. At the same time, banks have realized that many customers are now more comfortable banking from their homes or on their mobile phones. As such, many banks have responded by shifting resources to digital banking and away from physical locations. The banking industry continues to consolidate. There were over 10,000 banks in 2006. That reduced to 6,000 by the end of the financial crisis, That reduced to fewer than 4600 in 2023. We are seeing bank consolidation: Larger regional banks are merging with one another or taking over smaller banks in their regions to create stronger organizations with increased resources and competitive advantages. In cases where there is overlap, a number of branches are closing without losing customers. The overall operation becomes more efficient. ---------------- Host: Victor Menasce email: podcast@victorjm.com

Levi Lascsak is based Dallas Texas where he has mastered the art of using Youtube's powerful search capability to have clients find him. Today is a powerful show that you will want to pay close attention to. To connect with Levi, visit passiveprospecting.com and register for an advance copy of his upcoming book.  -------------- Host: Victor Menasce email: podcast@victorjm.com

Matthew Ryan is based in San Francisco where his firm specializes in developing co-living projects. Co-living is a product class aimed at the young professional who is seeking an affordable high quality accommodation in high priced markets. To connect with Matthew and to learn more, visit re-viv.com ----------- Host: Victor Menasce email: podcast@victorjm.com

On today’s show we are talking about how having a sewer pipe at the edge of your property may or may not be useful. It’s a very common assumption that if the city services are available in the street, or perhaps nearby, you can have access to sewer services for your project. Unfortunately, it’s not that simple. Most sewer systems are designed to be gravity fed. So in an ideal world, the sewage treatment plant would be located at the lowest point in the city and the sewer pipes would all flow downhill to the treatment plant. Sadly, not all cities are convenient enough to make that statement a reality. If a gravity fed system is not possible, then a lift station is going to be needed to pump the sewage uphill. Hopefully at that point, the difference in height will be enough for a gravity fed system to handle it from there. Gravity fed systems need to flow down hill. So in a perfectly flat topography, your sewer pipe will have to get deeper, and deeper and deeper in order to maintain a gravity feed. You might contact the city to gain access to the sewer service that is passing in front of your property. After all, there is a pipe only a short distance from your property line. Surely accessing the sewer service should not be a problem. Bu then the city engineer regrets to inform you that the sewer line doesn’t have the capacity to support the size of your proposed project. You might be tempted to think, why can’t the city plan for growth? After all, just put in a big pipe and save yourself the hassle of having to upgrade the pipe in the future. ------------- Host: Victor Menasce email: podcast@victorjm.com