Episodes

  • Storage in Houston with Mark Livingston

    Storage in Houston with Mark Livingston
    Aug 31 2024

    Mark Livingston is based in Houston Texas. On today's show we are talking about storage in Houston and a collaboration between Mark and our development firm Y Street Capital. We will be hosting a webinar this coming Wednesday at 6PM CDT, 7PM EDT to share more details about this upcoming project.

    To register for the webinar, visit

    https://event.webinarjam.com/register/34/ooq9xuwg


    ------------

    **Real Estate Espresso Podcast:**
    Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
    iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
    Website: [www.victorjm.com](http://www.victorjm.com)
    LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
    YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
    Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
    Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
    **Y Street Capital:**
    Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
    Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
    Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

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    11 mins
  • AMA - How Long To Ready An Apartment For A New Tenant?

    AMA - How Long To Ready An Apartment For A New Tenant?
    Aug 30 2024

    Today’s episode is another AMA episode. Today’s question comes from Chris who asks:

    What is an acceptable apartment-turn timeframe (how many days should it take to fix and be ready for next tenant) and how much should those make-ready costs look like between tenants?

    -----------

    **Real Estate Espresso Podcast:**
    Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
    iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
    Website: [www.victorjm.com](http://www.victorjm.com)
    LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
    YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
    Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
    Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
    **Y Street Capital:**
    Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
    Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
    Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

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    5 mins
  • Leasing Incentives That Don't Detract From Valuation

    Leasing Incentives That Don't Detract From Valuation
    Aug 28 2024
    At Y Street Capital we bring in young professionals from time to time to work as interns on a part time basis to learn more about real estate investing and development. These unpaid internship positions foster a win-win relationship that can often accelerate the learning for a young adult. At Y Street Capital we are looking for a research assistant to work for a few hours a week on special projects. Some of that work will also include the background research that could ultimately result in episodes of the podcast. If you have a few hours a week to spare and are a candidate, or perhaps you have a young adult in your life with a high level of curiosity. Send an email to podcast@victorjm.com and put the word research in the subject line. -------------- On today’s show we are looking at how to create leasing incentives that preserve the value of your building. Most building valuations are based on the income method which involves taking the gross rent, minus the operating expenses to get the net operating income. You then divide that amount by the market capitalization rate to get the value. Let’s say that you want to offer a bunch of incentives for new tenants to move into your building. You could offer a discount on rent which would result in a reduction in rent and therefore a reduction in the value of your building. If you offer the tenant something that costs you money to provide, then your expenses increase and you have the same effect of lowering the value of your building. In a brand new building you will want to pre-lease as much of the building as possible. Many developers I know have 30% pre-leasing as a target to achieve by the time the building is ready to open. But in order to achieve that, tenants need to plan on moving when the building is completed, not necessarily in 30 days or 60 days when it might be otherwise convenient for them. It’s a longer sales cycle. From an accounting standpoint, investments in the building assets are associate with the balance sheet and not the income statement. For example the materials that go into the building like paint and gypsum board and bricks are all part of the capital improvements. A capital investment is amortized over the depreciated life of the asset. Some startup costs can be capitalized. For example if you have marketing expenses that are associated with the initial lease-up of the building, it would be legitimate to capitalize those costs instead of expensing them since they are a one-time cost and not a recurring cost. So let’s imagine that you offer a free large format television as part of a move-in special. The cost of that TV can be capitalized. While it appears as an incentive to the tenant, it doesn’t get treated as an operating expense to the business and therefore the cost of the TV doesn’t reduce the value of the building when looking at multiples of net income. ----------- **Real Estate Espresso Podcast:** Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1) iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613) Website: [www.victorjm.com](http://www.victorjm.com) LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce) YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734) Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso) Email: [podcast@victorjm.com](mailto:podcast@victorjm.com) **Y Street Capital:** Website: [www.ystreetcapital.com](http://www.ystreetcapital.com) Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital) Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)
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    6 mins
  • The Evolution of Air Rights

    The Evolution of Air Rights
    Aug 27 2024

    On today’s show we are talking about air rights.

    Air rights refer to the legal ability to control, lease, or sell the space above a property. Traditionally, property rights included not only the land and any buildings on it but also the air above and the ground below. The concept of air rights date back centuries and are ingrained in common law. The biggest change to air rights came with commercial aviation which put the ownership of the atomosphere in the public domain while preserving private ownership of the air immediately above a property for the enjoyment of the property owner. Exactly where private property rights transition to the public domain varies by location and by jurisdiction.

    --------------

    **Real Estate Espresso Podcast:**
    Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
    iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
    Website: [www.victorjm.com](http://www.victorjm.com)
    LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
    YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
    Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
    Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
    **Y Street Capital:**
    Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
    Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
    Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

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    6 mins
  • The Fed Pivot Is Here

    The Fed Pivot Is Here
    Aug 26 2024

    For the past several months I’ve been predicting that the Fed will need to pivot on their interest rate policy.

    As recently as Thursday of last week I predicted that the Fed would have no choice but to drop interest rates based on labor market weakness. I also predicted that we would hear some meaningful update at the Jackson Hole conference in Chair Powell’s remarks on Friday morning.

    I don’t have a crystal ball, although I expect to some that it might seem like I do. On Friday morning Chair Powell did indeed announce a major change in monetary policy. There were a few things that Chair Powell said in his remarks that were significant.

    He declared a bit of a victory lap on the inflation fight, even though the disinflationary progress has been gradual over the past year.

    The real story behind the Fed pivot is unemployment is rising sharply.

    ---------------

    **Real Estate Espresso Podcast:**
    Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
    iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
    Website: [www.victorjm.com](http://www.victorjm.com)
    LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
    YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
    Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
    Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
    **Y Street Capital:**
    Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
    Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
    Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

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    6 mins
  • IRS Tax Liens with Hubert Johnson

    IRS Tax Liens with Hubert Johnson
    Aug 25 2024

    Hubert Johnson is a tax lawyer with Guardian Tax Law based in Tucson Arizona. On today's show we are talking about resolving problems with properties that have tax liens filed against them. You can reach out to Hubert at 520-526-9850 or visit their website at guardiantaxlaw.com

    --------------

    **Real Estate Espresso Podcast:**
    Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
    iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
    Website: [www.victorjm.com](http://www.victorjm.com)
    LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
    YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
    Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
    Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
    **Y Street Capital:**
    Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
    Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
    Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

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    11 mins
  • Perspective on the US Election with George Ross

    Perspective on the US Election with George Ross
    Aug 24 2024

    George Ross was executive vice president in the Trump Organization for many years. On today's show George shares his perspective on the current election.

    ----------------

    **Real Estate Espresso Podcast:**
    Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
    iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
    Website: [www.victorjm.com](http://www.victorjm.com)
    LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
    YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
    Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
    Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
    **Y Street Capital:**
    Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
    Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
    Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

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    19 mins
  • Drilling For Oil In The Back Woods of Kentucky

    Drilling For Oil In The Back Woods of Kentucky
    Aug 23 2024

    On today’s show we are talking oil and gas investing. I recently had an investor ask about investing in oil and gas. So on today’s show I’m going to tell you the story of my foray into the world of drilling oil wells in the back woods of Kentucky.

    ----------------

    **Real Estate Espresso Podcast:**
    Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
    iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
    Website: [www.victorjm.com](http://www.victorjm.com)
    LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
    YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
    Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
    Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
    **Y Street Capital:**
    Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
    Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
    Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)

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    8 mins