The Real Estate Espresso Podcast

On today’s show we are talking about property taxes.  We have experienced dramatic increases in costs for owners of multi family apartment properties over the past couple of years. The biggest contributors have been the cost of capital as a result of rising interest rates and the rising cost of insurance.  In some areas of the southern United States, insurance costs are up by 500%-700%. Insurance increases of 30%-50% are routinely being reported by  property owners that I speak with.  The cost of providing government services naturally has increased as well. Local governments derive the majority of their revenue from property taxes and to a lesser degree from development impact fees.  From time to time the jurisdictions can also alter the formula they use to determine property value. For example in the wake of the 2008 crisis, property values fell widely across many parts of the United States. The net result was that the assessed value for tax purposes also fell. Many property owners appealed their tax assessments and were successful in having their property taxes reduced significantly.  Of course the cities in which the values fell did not have a corresponding fall in operating expenses. They still needed to pick up the trash, cut the grass, pay the school teachers, provide police and fire service and so on.  In response, some cities changed the formula by which the property values were assessed. The housing market surged during the pandemic sending the value of the typical U.S. home 37% higher than in February 2020 prior to the crisis.  Cities and counties typically reassess property values every year or two, although some regions have gaps of several years between reassessments. That means homeowners are just now seeing the real estate boom reflected in their tax bills. ------------ Host: Victor Menasce email: podcast@victorjm.com

Ken Brown is based in Washington DC where he is a principal at Lion Chase Holdings. On today's show we are looking at the outlook for the coming year. To connect with Ken visit https://lionchase.com --------------- Host: Victor Menasce email: podcast@victorjm.com

Scott Lewis is based in Golden Colorado where he is a principal with the Spartan Investment Group. Our team at Y Street Capital is also work with the Spartan Group on a couple of projects including the construction of a new storage project in Grand Junction Colorado. On today's show we are talking about project execution and scaling the business. To connect with Scott, visit spartan-investors.com --------------- Host: Victor Menasce email: podcast@victorjm.com

On today’s show we are taking a look at the build to rent trend that’s growing across many parts of the United States. This is where you build an entire community of detached single family homes or in some cases townhomes. In fact there is a continuum of product offerings that are possible to bridge the gap between the density and cost of detached homes versus a multi story apartment complex. The traditional thinking is that the most lucrative investment is always the highest density property. The more units you can put onto a piece of land, the more you can get in terms of income and value. On today’s show we are going to look at the cost of construction associated with these different building styles to see how that might influence the choice of one over another. --------- Host: Victor Menasce email: podcast@victorjm.com

On today’s show we are talking about different types of trusts. Now before we begin, let me state categorically that I’m not a lawyer and I’m not an accountant and I’m not here to provide any form of tax advice or legal advice.  The purpose of today’s show is merely to discuss different types of trusts so that you are armed with enough information to conduct additional research of your own, and then in turn seek advice from your own advisors, licensed to practice in the jurisdiction where you reside.  So here we go.  A trust is a legal relationship that entails the separation of legal ownership and beneficial interest. It is created when property is transferred by a settlor, who owns it, to a trustee, who holds legal title to it for the benefit of another person or persons, known as the beneficiaries. Most trusts have a trustee whose primary role is to enact decisions on behalf of the trust’s beneficiaries. There are many types of trusts and we’re going to briefly define a few of those today. 

On today’s show we are talking about how and when to hire an interior designer.  As developers and as building owners we often look to the architect to help us determine the aesthetic of our buildings. But often the skillset is not sufficient to cover the breadth of interior design.  We often hear the term interior decorator and some people use these terms interchangeably. But they are very different in my mind. While there is some overlap in their responsibilities, there are distinct differences in terms of education, scope of work, and professional expertise. -------------- Host: Victor Menasce email: podcast@victorjm.com

Today is another AMA episode. Steve asks “Without a crystal ball but more broadly, what is your opinion of bitcoin as an investment?” ------------ Host: Victor Menasce email: podcast@victorjm.com

Our book this month is called “Noise: A Flaw in Human Judgement” by Daniel Kahneman, Olivier Sibony, and Cass Sunstein. Daniel Kahneman is an author, psychologist and economist notable for his work on hedonic psychology, psychology of judgment and decision-making. He is also known for his work in behavioral economics, for which he was awarded the 2002 Nobel Memorial Prize in Economic Sciences. He is also the author of Thinking Fast and Slow which we reviewed on the show last year. In this book, the authors make the distinction between different sources of deviation from the ideal target. The most obvious source of error is bias. But in many cases, noise can be as large as bias when it comes to introducing error or any unwanted form of variation.  ------------- Host: Victor Menasce email: podcast@victorjm.com

Sean Roberts is based in Denver Colorado and is the CEO of Villa Homes. The company is focused on designing and building a wide product line of factory built accessory dwelling units for the California market. They are the largest supplier of volumetric ADUs in the state and target both residential in institutional clients. To connect with Sean and to learn more, visit villahomes.com ---------------- host: Victor Menasce email: podcast@victorjm.com

Tim Lyons is managing two careers simultaneously. He's a Lieutenant with the NYC Fire Department and is also a managing partner with City Side Capital, a FINRA registered broker dealer license. On today's show we're talking about managing dual careers and capital allocation in today's environment. To connect with Tim, visit citysidecap.com or check out the Passive Income Brothers Podcast. ------------- Host: Victor Menasce email: podcast@victorjm.com