Yes, you read that correctly. Today’s show is a deep dive into a due diligence item that we often don’t think about.  I’m going to read a few extracts from an engineering letter we received as part of an information package on a property.  The project in question is a residential subdivision with a large rock outcropping in the middle of the property. The top of the hill consists of large boulders and the residential area below is surrounding the rock outcropping. The residential homes...

On today’s show we are breaking down the different types of construction contracts that you can sign. Now let me be clear, I’m not here to offer any type of legal advice. I’m merely sharing our experience when it comes to undertaking different types of construction projects.  The first thing you need to get clear on is whether you are hiring a general contractor or a construction manager. This is a distinct choice. In either case, there will be subcontractors involved for the specific work...

On today’s show we are looking at the demand for construction materials and labor. The number of housing starts is way down nationally. This is true for single family homes and for multi-family apartments. So it stands to reason that there should be plenty of labor available for your projects if you decide you want to undertake a project in this current environment. -------------- **Real Estate Espresso Podcast:**  Spotify: [The Real Estate Espresso...

On today's show I'm asking George about how he used to attract business before the days of digital marketing. Love his answer. ------------------ **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)...

On today’s show we are looking at the national average numbers for residential real estate.  The statistics seem to be conflicting and it seems like the numbers are not adding up. On today’s show we are going to unwind the apparent contradiction to make sense of what is truly going on. The national association of realtors reported that sales volume in September fell to the lowest level since October of 2010 with an annualized rate of 3.84M homes being sold. This is a 3.5% decline from the...

The Bank of Canada took a victory lap yesterday as they cut interest rates by 0.5%. This is the fourth consecutive rate cut since June. The rationale given was that inflation in September hit 1.6% down from 2.2% in August.  The fact is, Canada’s economy is extremely weak right now. The drop in rates is needed to maybe stimulate growth.  For real estate investors, the rise in interest rates over the past few years has created a glut of condo’s for sale in the market. About 25% of new condo’s...

On today’s show we are talking about a service business that used to be on top of its segment in the market.  The company we’re talking about is Starbucks. So it’s no surprise to me that today Starbucks CEO Brian Niccol announced a major drop in both earnings and revenue. They also suspended financial guidance for the upcoming quarters.  Once a brand loses loyalty to the brand, it’s hard to get it back. Same store sales are down 6%. Attempts to win back customers with various promotions...

On today’s show we are wondering if governments and central banks in particular have any effect on the repairing the economy.  It’s a simple question really. If central banks can truly influence the economy, inflation and the unemployment rate, then why are central banks all behaving the same way at approximately the same time? Why is the bank of Canada going to lower interest rates later this week? Why did the ECB lower rates last week? Why did the Federal Reserve lower rates by half a...

On today’s show we are talking about how to evaluate a bid from a subcontractor.  If you follow the procurement method used by most government departments, in the US and in Canada, the process makes sense.  Everyone needs to meet the minimum requirements. For all those who meet the minimum requirements, the purchaser will select the lowest bidder.  Intuitively this makes sense. But it puts the burden on the purchaser to specify every aspect that matters to the buyer.  My mentor Dr. Nido...

Hunter Webb is in Lisbon Portugal, where he is a principal at DeepRent.ai. On today's show we are talking about how artificial intelligence can automate the management of a portfolio of storage facilities. To connect with Hunter and to learn more, visit deeprent.ai ----------- **Real Estate Espresso Podcast:**  Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)    iTunes: [The Real Estate Espresso...

Eddie Lack is originally from Sweden. He moved to North America to play professional hockey with the Vancouver Canucks, the Carolina Hurricanes, the Calgary Flames and the New Jersey Devils. Today Eddie is based in Scottsdale Arizona where he is building luxury homes. Not the typical career path into development. Eddie has built his skills methodically over time. To connect with Eddie visit eddielack.com --------------- **Real Estate Espresso Podcast:**  Spotify: [The Real Estate Espresso...

On today’s show we are taking a look at a couple of global companies. I’m reading front page articles in the WSJ and others suggesting that economists are thinking that the chance of recession in the foreseeable future is vanishing.  The world seems to have embraced a new form of double speak. ----------------- **Real Estate Espresso Podcast:**  Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)    iTunes: [The Real Estate...

On today’s show we are continuing our series on international outlook. There are many jurisdictions that position themselves as great retirement destinations. If you’re visiting, then you can usually stay in some places up to 90 days on a visitor visa before you need to leave. Some places allow up to six months. But if you’re looking for a location for a winter residence and want to stay longer than 90 or 180 days then you will likely need a residency visa.  Some countries offer a lengthy...

On today’s show we are taking another look overseas. We are accustomed to places where there is growth. We don’t really know how to invest in places where population is shrinking.  Today’s show is the story of Nadia. My wife and I met Nadia when we were on vacation in Mexico a few years ago. Nadia was born in Germany and she has lived in Ireland and the US. She married an Irishman who was in investment banking and moved to the US. The marriage didn’t last and Nadia found herself on her own....

On today’s show we are talking about why Germany’s economy seems to be stuck in reverse. We keep hearing about how Germany, which has traditionally considered the economic engine of Europe is struggling. The German government recently downgraded their economic outlook and are forecasting contraction well into next year. The ECB is forecast to drop rates this week in order to further stimulate the economy. But I believe Germany’s issues are structural.  Here are the factors that in my opinion...

On today’s show we are talking about demographics and migration. This is a topic you’re going to hear a lot more about in the coming weeks and months. Demographics is like a law of physics when it comes to real estate investing. It’s like gravity.  It’s no surprise that fertility rates are well below the rate required to maintain population constant.  If you want to examine at what declining population looks like, you only need to look at Japan.  Japan’s fertility rate has been below the...

Robby Butler is Director of Capital Markets at Y Street Capital. On today's show we are discussing some of the nuances of conversations with potential investors. How does a conversation become a consultative process versus a sales process? To connect with Robby you can find him on LinkedIn or at Y Street Capital www.ystreetcapital.com or email him directly at [email protected]. ----------------- **Real Estate Espresso Podcast:**  Spotify: [The Real Estate Espresso...

Clayton Young was one of two long distance runners who enabled the US to qualify for the Olympic Marathon in Paris. On today's show we're discussing Clayton's 9th place finish in the Paris Marathon and the entire experience from the preparation, the aftermath and now the preparation for the New York City Marathon in early November. -------------------- **Real Estate Espresso Podcast:**  Spotify: [The Real Estate Espresso...

On today’s show I’m going deep into a planning rationale that was presented to an information session at Colorado Springs City Council earlier this week.  Whenever you are presenting a concept to the city, you are asking for them to vote in favor of your project. In order to make an effective presentation you have to put yourself into the shoes of the person sitting in the council chamber who is tasked with listening to your proposal and then at some point in the process voting in favor or...

On today’s show we are talking about quarterly goal setting. Our company uses a system that has become very popular among companies both large and small.  We use the EOS based on  the book Traction by Gino Wickman. EOS stands for the Entrepreneurial Operating System. We review our results against the goals we set for the past quarter and we set the business imperatives for the quarter. A business imperative is called a ROCK. This is something that we treat as a top priority. It is something...

I had dinner last night with a commercial lender from Cleveland, Ohio. The lender had their Lead underwriter with them. We had an extensive discussion about all of the ways that borrowers are lying to themselves.  We see this type of problem whenever we are conducting due diligence on opportunities that are presented to us. We see all kinds of underwriting errors. So on today’s show we are going to cover the top ways in which investors lie to themselves. ------------- **Real Estate...

A few weeks ago I did an episode on hurricane preparation. Great ideas for storm preparation are fantastic until reality sets in.  Hurricane Milton is scheduled to make landfall in Florida on Thursday. The storm will weaken as it makes landfall. However the size of the storm is such that traversing the land of the state of Florida will not take that much energy out of the storm by the time it reaches the Atlantic coast. Properties along the Gulf coast definitely need to expect a severe...

Today’s show is another in our beginner series. Our listeners are sophisticated. Many of you own large portfolios of apartments. But you also have people in your life who are interested in learning more, but maybe don’t have access to high quality information. The idea of sending your spouse to a $199 weekend bootcamp for beginners where they are going to be abused by sleazy sales people sounds unthinkable. So where do they go. Look no further. We are going to dedicate a couple of shows a...

Today's show is a talk that I gave recently to a live audience on how we transformed a project from merely OK to much stronger by repositioning the product design. ---------------- **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:...

George Ross is famous for his previous role as Executive Vice President in the Trump Organization. Today George is an advisor to our firm. On today's show George is discussing the merits of a potentially hazardous dual relationship. The party could be a supplier to a development project and an investor. George is advising on the safeguards to protect the project. --------------- **Real Estate Espresso Podcast:**  Spotify: [The Real Estate Espresso...