The Real Estate Espresso Podcast

When you think of Elon Musk, we largely think first of Tesla, or PayPal, or more recently Twitter. None of these has the potential to materially impact the value of real estate. But SpaceX has changed the value of real estate in ways that are not showing up readily in the metrics. At least, you might not see the effect right away. Today, a large percentage of the population have adopted high speed internet. If you’re going to work from home, and participate in your office culture, you need a reliable high speed internet connection. Despite the fact that the internet has been around on a large scale since the early 1990’s, there were many areas that were underserved. This fact has kept many people from investing in rural properties. Rural properties offer a number of advantages for some families. It offers the potential of lower property taxes, lower utilities costs for those relying on well water and septic. A larger land parcel offers the potential for a home garden and a higher quality of life than a home in the suburbs. Starlink now has enough satellites in their low earth orbit mesh to supply a decent coverage and very respectable data rates. They have launched 3,500 satellites and just broke the 1M subscriber milestone. -------------- Host: Victor Menasce email: podcast@victorjm.com

Carina Guzman specializes in land development. On today's show we are talking about a 90 acre residential subdivision that is next to a ski resort. To learn more or to connect with Carina, you can find her on LinkedIn, or on Instagram at https://www.instagram.com/the_land_development_queen/ -------------- Host: Victor Menasce email: podcast@victorjm.com

Aundrea Newbern is the Chief Operating Officer at Get Rich Education. She also runs several businesses including a property management company, and a crime scene cleanup company that is based in Detroit Michigan. It turns out the crime scene cleanup can be a valuable source of properties for investors. Who would have guessed? You can connect with Aundrea at https://www.facebook.com/aundreasells or visit getricheducation.com/course --------------- Host: Victor Menasce email: podcast@victorjm.com

Today’s show is a little bit of a retraction, or perhaps a refinement of something we have covered last year. The US Federal Reserve had it right. The economists working for the Fed in 2021 suggested that the inflation we were experiencing was transitory. That was the word that they used. J Powell said it. Janet Yellen, Treasury secretary said it. Many including myself at the time didn’t believe it. In fact, in the end, even the Fed didn’t believe it and had to course correct.

On today's show, we're answering a question from Martin who is looking to underwrite a small development project using an existing structure as the basis for the new higher density building.  ---------------- Host: Victor Menasce email: podcast@victorjm.com

Today’s show is the first in a series we are calling back to basics. Back to basics means getting clear on underwriting criteria. On today’s show we’re going to examine the interplay between your project approval criteria, versus your lender’s project approval criteria. When you undertake a new project, how do you know it’s a good project? --------- Host: Victor Menasce email: podcast@victorjm.com

On today’s show we’re taking a closer look at what it takes for the Bureau of Labor and Statistics to declare their numbers for GDP, and ultimately when they declare that we are in a recession. Why is this important for real estate investors? Well, interest rates keep rising because inflation is high and the economy is strong. The economy is strong is the part of that narrative that is continuing to fuel inflation expectations in the eyes of the Fed. We know intuitively that the economy in Nebraska is different than the economy in California. So knowing that fact, we could conceive it possible that one state could be in economic expansion, while another is in economic contraction. We’ve long said that real estate is hyper local. So too is the economy. Does the local state data give us any insight into economic contraction on a national basis? --------------- Host: Victor Menasce email: podcast@victorjm.com

On today’s show we are going to focus on the market for T-Bills to try and understand why there is an apparent shortage of this paper. Demand is exceeding supply. Why is that? It doesn’t make sense. Is the market saying that they want to US government to spend even more? Do they want to see even greater deficit spending? The government holds a monthly auction for T-Bills and these notes sell in the open market to the highest bidder. The highest yield paid in the Jan 5 auction was 4.1%. The current RRP set by the Federal Reserve, which is supposed to be the floor set by the Fed at their last meeting, is 4.3%. But none of these T-bills sold at 4.3%. They all sold at a lower interest rate. There were sales at 4%, and the lowest sales were at 3.85%. So why would these bonds selling at auction be getting less than the coupon interest rate? Why would the buyers be willing to pay extra for these bonds and accept a lower interest rate? ---------------- Host: Victor Menasce email: podcast@victorjm.com

Sam is based in NYC where his company is undertaking one of the most innovative coastal clubs that are actually floating private membership clubs. The first club will be located in Miami and you can learn more about the project at Arkhaus.miami.  --------------- Host: Victor Menasce email: podcast@victorjm.com

Fred Moskowitz specializes is based in Philadelphia and specializes in buying notes from lenders. He's a real expert in finding notes that are being sold in the secondary market. To learn more, you can download some amazing material at giftfromfred.com, or connect with him directly at fredmoskowitz.com