The Real Estate Espresso Podcast

On today’s show we’re going to pick apart the Wall Street narrative. In the world of stock investing, there are two schools of thought. There is a portion of the market that buys a stock on the basis of fundamentals. Fundamentals means, is the valuation for the company cheap or expensive based on its ability to generate earnings. What are the earnings multiples? In essence, what is the cap rate? ------------------ Host: Victor Menasce email: podcast@victorjm.com

Today’s show is answering a question for the students at Virginia Commonwealth University and their professor Josh Ridpath who has been using the Real Estate Espresso Podcast for course content in their program. Professor Ridpath writes: “My students found your content on the inflationary pressures of the shipping bottlenecks and increased prices for packaging eye-opening. Among my students, several of them only thought of real estate investing through the lens of Airbnb. I don’t have much experience in short-term rentals. Still, I thought it might make an interesting episode to make a quick comparison between the breakdown of income and expenses for a single-family home used as a traditional rental vs. a short-term rental. A lot of them only see the higher revenue on a nightly basis and have no basis for things like vacancy, management fees, and cleaning that isn’t typical in a traditional rental. Thanks for all of the great content.” ------------------- Host: Victor Menasce email: podcast@victorjm.com 

Jacob Garza hails all the way from San Antonio, Texas where he owns and manages a portfolio of approximately 2,800 apartments. Jacob got his start as a founder of a property management software company before selling the company and transitioning into owning apartments. You can learn more and connect with Jacob at jacob@jacobgarza.com or you can visit his website at reepequity.com. ------------------ Host: Victor Menasce email: podcast@victorjm.com

Jenny Blake is the author of the upcoming book "Free Time: Lose the busywork, love your business". On today's show we're talking about a few of the central ideas in the book and about some of the factors that are limiting for business owners. Loved this conversation with Jenny Blake.  To order an advanced copy visit http://itsfreetime.com/book ----------------------- Host: Victor Menasce email: podcast@victorjm.com

Today is another AMA Episode (Ask Me Anything). Today's question comes from Joe who writes. "I live outside Boulder Colorado near the small town of Superior/Louisville.  We had just experienced a devastating fire that destroyed over 900 homes.  This comes at a time when inventory, for sale and for rentals, is at an all time low with massive demand (~0.3 months supply in Boulder County).  As a Realtor and landlord in the area, I am seeing my colleagues raising rents over 30% and removing homes previously listed on the market only to put them back up at 20% higher values a few days later. I understand the relisting homes at a higher price, as an agent we need to do what's best for our clients but as a landlord I am debating with myself on what our responsibilities to the local community to try and maintain a reasonable increase in rent and not try to gouge people in this hard time. I'd love to hear your thoughts on how we as investors can approach the unique surge in an already tight real estate market. Thanks for all your work on the podcast my wife and I listen every morning as part of our routine!" ----------------- Host: Victor Menasce email: podcast@victorjm.com

Today’s question comes from Evan who writes. I have 3 rental properties and a primary residence that we'd be looking to retain and rent. Like a lot of people we're looking for a bigger house and bigger yard out in a charming suburb. I don't really know how to think about it though. It's much easier to crunch numbers on rental properties than it is a primary residence. On the one hand you have to live somewhere and real estate can be a great asset class and store of wealth, on the other hand it's a big expense and generally cash-flow negative. How do you look at buying a primary residence? Is this crazy housing boom we're in now a good time to buy? Is it only going to get crazier? ------------------ Host: Victor Menasce email: info@victorjm.com

On today’s show we’re going to look at what’s happening in monetary policy and how that will affect the stock market in the coming weeks and months, and how this could affect investment psychology and some of the factors that could even trigger a recession. ---------------- Host: Victor Menasce email: podcast@victorjm.com

Today is another AMA episode (ask Me Anything). Today’s question comes from Anna who asks, “Thank you so much for all of your production and insight into real estate investing. You are highly regarded in the real estate investing realm. I have been trying to get into real estate investing for the past 2 years and seeking to do exactly what you did (make a hard left turn from my current career to full time real estate investing). I know you discuss the importance of the following 3 principals for getting into real estate investing: the right knowledge, the right mindset, and the right environment. I feel like I have grown a lot in gaining the right knowledge and mindset, but I feel like I have had trouble getting into the right environment. I know of real estate investing associations, but unfortunately I have found them to yield little fruit, maybe because everyone seems to have jumped on the real estate investing train and trying to rub elbows with the right people is like trying to find a needle in the hay stack. Maybe you could explain your personal experience with how to get into the right environment and how your experience in the mid 2000s compares to today. Any suggestions for how you would coach yourself today to solve the right environment principal?” --------------- Host: Victor Menasce email: podcast@victorjm.com

We are continuing our series on the evolution of the internet with Web 3.0. Every Monday in the month of January we are covering a different aspect of the new distributed internet, which most people associate with crypto-currencies like Bitcoin. On today’s show we’re talking about virtual land on the internet. There are a number of startups that are creating virtual worlds. There is a big bet being made that virtual reality will move out of the early adopter phase into becoming more mainstream. Facebook is placing a large bet on these virtual worlds, and they even changed the name of the company to Meta to reflect their bet on the metaverse. The internet has evolved from text to images to video. But video is not the end of the line. There is a far more immersive experience possible, whether it’s a real live video connection, like we experience today on zoom, or a virtual reality platform. The Meta product is called the Sandbox. All of the items inside a metaverse like land, furniture, avatars, clothing, artwork are made up of tokens. In the language of web 3.0, these are called non-fungible tokens or NFT’s. The first of these worlds is a game called Horizon Worlds. Some skeptics think there is no intrinsic value in these virtual systems. But that ignore the economic value of the entire gaming industry. The gaming industry is well established and clearly worth millions. Most of the advanced games on consoles like the Xbox or the Playstation have some version of an immersive virtual reality experience. But the spoils go to the platform owners and the software developers. These are relatively closed systems and the concentration of wealth is in the hands of a few. Web 3.0 hopes to democratize that. I personally have my doubts that it will happen. There needs to be interoperability between different platforms. You need to know that you own your avatar, and your tokens not the platform. Today the largest truly decentralized metaverse is on a platform called Decentraland. This is a virtual world with avatars that you can use to explore the locations. You can buy real estate in these worlds and you can resell the real estate. Like in the real world, you can visit places. ------------------- Host: Victor Menasce email: podcast@victorjm.com

Yep, I'm going to be out of circulation for a few days. I've tested positive and am in an isolation area at a resort in Mexico.