The Real Estate Espresso Podcast

Seth Teagle is based in Columbus Ohio where he manages a portfolio of over 600 apartment units, mostly for his own account. He discovered along the way how execution and scalability are linked together. Such a great story.  To connect with Seth reach out to him at seth@thestreamgroups.com --------------- Host: Victor Menasce email:podcast@victorjm.com

Today is another AMA episode (Ask Me Anything). Karla writes: Please share your thoughts on the ideal number of doors in each class asset from the business and administration perspective for a multifamily investment. It would be helpful to know the criteria to determine the number of doors. -------------------------------- Host: Victor Menasce email: podcast@victorjm.com

This question comes from Rod in the State of Ohio In a past episode you discussed everyone being on same page (Literally) from a document version standpoint. You were evaluating different services and options at that point. Wondering if you could share your results of your analysis of your New System and any thoughts of why you chose a specific system for your needs. We love your Podcast and Thank You for all that you do… -------------------------- Host: Victor Menasce email: podcast@victorjm.com

Today is an AMA episode (Ask Me Anything) Today’s question comes from Chris in Philadelphia. He writes: "I love your RE Espresso podcasts--short and packed with info. Thank you for making these! They're perfect for my 10min walk to the office. I recently listened to an episode you did with a fella from Greensboro, North Carolina, and you mentioned this market was heating up.  I was delighted to hear that from you, as this is a potential market my partner and I have identified for multifamily investments. I know the criteria we used to narrow down on this market, and I'd be happy to share if you'd care to know; but I'm also curious if you could share with me how you drill down on markets, and why specifically you believe Greensboro NC is heating up?  I desire to learn this from you, the seasoned investor, to see if we landed on this market for all the wrong reasons, or to confirm that we are doing our due diligence correctly." --------------------------- Host: Victor Menasce email: podcast@victorjm.com

On today’s show we’re taking another look at the prospects for the office segment. This is brought to you as a result of new report published by brokerage house Marcus and Millichap. The report tells a tale of pain and opportunity. Roughly 90 million square feet of new inventory is expected to be added to the market. These projects were started before the pandemic. As you know, once a project starts, you need to finish it. Markets that welcomed the most inventory were led by New York with 6 million square feet, followed by Chicago with 4.3 million square feet and Dallas-Fort Worth with 3.8 million square feet. While the addition represents about 1% growth in the overall office square footage, the vacancy rate market wide is currently at 16% overall. But the hardest hit properties were those in the urban core. San Francisco had the biggest jump in vacancy to 18.4% as 14 million square feet were vacated. To download the full report, here's a link to get it. https://www.marcusmillichap.com/research/special-report/2021/07/office-midyear-outlook

On today’s show we’re talking about your property, and where your rights end. If you happen to own a factory that borders on the Hudson River and you dump millions of gallons of toxic material in the river, most people would agree that those affected should have the right to make an argument that they’re being negatively impacted and you should stop. That’s pretty clear. In fact, the government should step in for violating environmental regulations. That too is pretty clear. But if you build a house in a neighbourhood, should the neighbours who did not make an investment in your property get to dictate what you do on your property? In an effort to prevent neighbours from arguing with each other over aesthetics, cities have created rules in the zoning code. These are the same rules that the neighbours who live next door and across the street have to live by. It becomes a difficult argument that a rule was good enough for you, but is not appropriate for the neighbour. The grey zone is when variances are involved. ------------------------ Host: Victor Menasce email: podcast@victorjm.com

Mark Khuri is based in Bend Oregon where his company SMK Capital invests in projects all over the country. On today's show we take the journey from active investor to fund manager.  You can learn more and connect with Mark through his website at SMKcap.com -------------------- Host: Victor Menasce email: podcast@victorjm.com

Brent Bowers specializes in land. But not just any land. Listen to today's podcast for a unique strategy on how to make land into a cash flowing asset.  To learn more, you can reach out to Brent at thelandsharks.com --------------------------- Host: Victor Menasce email: podcast@victorjm.com

On today’s show we’re talking about the gold rush that happens in virtually every new market innovation. We saw it with the railway, the automobile, radio, television, personal computers, the internet, and now in Cannabis. When a new market is developing there is a major opportunity for new entrants to grab market share in a growing market. When you layer growth upon growth you have the potential for hyper growth. These market conditions have attracted entrepreneurs since the beginning of time. If you’re a student of history, you will see a familiar pattern. There is a rush to entry, with a brief period of healthy growth, followed by market saturation, followed by consolidation as weaker players are forced to close. Only after the maturation of the second wave of growth in the market do companies experience sustainable business. ----------------- Host: Victor Menasce email: podcast@victorjm.com

On today’s show we’re talking about the importance of digging deep in due diligence. Investors are no strangers to maximizing value. Sometimes value creation happens through genuine means and other times it happens through manipulation of the system. We all know that there is a link between income and value. The math is pretty simple. You take the net income after expenses and divide that number by the market cap rate for comparable properties to calculate the value. Pretty simple and pretty bullet proof objective method for calculating the value. But what happens when properties are difficult to lease? But then the landlord offers a leasing incentive. Maybe they offer 13 months for the price of 12. Maybe they make the first month free and then offer to start the lease in month two. But still the landlord took the money up front as a security deposit and then transferred the funds from the security deposit account to the rental account. From the market perspective, it still looks like a 12 month lease. The tenant got an 8% discount on their rent for the year. But it doesn’t appear anywhere. The accounting records for the business look like the landlord got full rent for a 12 month lease. The 13th month appears off the record. --------------- Host: Victor Menasce email: podcast@victorjm.com