In real estate, most operational mistakes are not the result of bad intentions. They are the result of assumptions. You believe the tenant will know where to park, how to receive packages, how to operate the thermostat, or how to submit a maintenance request. You assume your team will know how to prepare the unit, confirm utilities, or walk a resident through the lease.

But assumptions are the enemy of predictable execution.

Professional developers use a tool from the software world called use cases, sometimes known as user stories, to design a process that works for the client in the real world, not the world we imagine on paper.

A use case is a simple story that describes how a specific person completes a specific task under specific conditions. It forces you to see the experience through the customer’s eyes, not the company’s.

In residential real estate, this is invaluable. 

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

**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: [[email protected]](mailto:[email protected])  
**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)  

On today’s show we are talking about the impact of artificial intelligence on the design of apartment buildings. The most obvious medium term impact of AI is going to be on the automotive industry. Some people prefer to drive by car because they don’t want the experience of public transit. It’s noisy, it’s crowded. You can’t have a private phone conversation on a bus or on the subway. The bus doesn’t take you where you want to go. It may take you close by, not exactly where you want to go. Even in places where traffic congestion is high and parking is expensive, people prefer to drive over the alternative. 

The cost of a taxi might be expensive. But depending on how often you drive and how far you drive, even using a taxi service might be more cost effective than owning your own car.

These days a ride sharing service like Uber or Lyft is typically costing between $2-3 per mile or between $1.25 - $1.87 per kilometre. Much of this is linked to the wage associated with having a human driver behind the wheel.

If you take a typical leased vehicle that might give you 15,000 miles per year and that lease might cost you $600 a month and maybe a similar amount in insurance. If you spend $2000 a year in fuel to drive those 15,000 miles then your cost per mile for a vehicle that you own is going to cost about $1.09 per mile. If you have to pay for parking, you are probably going to break $1.25 per mile in terms of cost. That’s assuming that the car needs no maintenance. 

On the other hand, if you can save time because you don’t need to look for parking a robotaxi might be a competitive solution. Some recent numbers suggest that robo-taxis will cost between $0.25-$35 per mile in mass deployment.

That’s a significant saving over car ownership. The other important question will be the balance of supply and demand. If you have to wait too long for a robo-taxi to show up, then people won’t use it. But if the supply is sufficient to keep wait times low, then robo-taxi adoption will change the entire auto industry. There will be no reason to own a car. For those really long road trips, it would be cheaper to rent a car. For trips within the city, a robo-taxi would even be preferable to owning a car for many people. 

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

**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: [[email protected]](mailto:[email protected])  
**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)  

Sometimes in life you have amazing foresight and insight. And then other times you’re just lucky. This is one of those cases where we are just lucky. I’ll gratefully accept luck when it happens to benefit us. In fact we have no choice. We have have to accept unlucky bounces as well. 

This week there was an announcement of a major new nuclear power installation for Brigham City Utah. This suburb of Salt Lake City has a population of about 20,000. We know this area well because we have a 21 acre project currently under development just off the I-15 interchange and across the street from the Walmart SuperCenter. Our project consists of a Marriott Townplace Suites Hotel, 104 townhouses and 60,000 SF of flex industrial. The nuclear project will consist of an array of 4-10 small modular nuclear reactors with the first one being delivered in the early 2030’s. 

The country has finally woken up to the notion that the US will need a vast increase in the amount of electricity generation capacity. 

The area around Salt Lake City could be a candidate for data centres and manufacturing, were it not for the fact that the area has insufficient power to sustain the growth. 

-----------

**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: [[email protected]](mailto:[email protected])  
**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)  

On today’s show we are taking a look at the benefits of working in an office environment versus remote work. 

Back in 2019 average commute times in major cities had reached a peak. For example average commute times in San Francisco were 33 minutes. During the pandemic, that fell to 25 minutes. But in truth, since many were not commuting at all, the commute times for people working from home went to zero. Fast forward to this year and commute times are back above 30 minutes again, essentially mirroring times from 2019, despite the fact that many offices remain vacant. In fact the downtown vacancy in San Francisco remains at 34.4%, so there are still a lot of people not traveling to the office and working from home. 

When I was in the tech industry, the benefits of having teams co-located was well documented. In fact, the level of communication between team members dropped significantly when desks were more than 50 feet apart. Close working teams need to be close together to function optimally. 

-----------

**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: [[email protected]](mailto:[email protected])  
**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)  

Today's question comes from Zane in Georgia who asks:

I was hoping to get a professional opinion or suggestion on how I should approach an issue with a small town council who won't update utilities and a seller who wants a premium price for their land but cannot get it because of utilities being maxed out. I am a residential and small multi investor and my knowledge of selling land for development is minimal. I have known the seller and family for several years and they trust me to represent them honestly, which is why they asked me to list their land. But, it has been a year and the few interested buyers we have gotten are bidding too low for the seller and then council ruins the DD. 

This is a 100 acre tract on two parcels in the city limits of Maysville, GA just off I-85N near Atlanta. Seller wants to get around 6.5M from the sale, I have warned that 4M is more likely but it's not a conversation they want to hear.  

The land has 18 acres of C2 zoning on the main road with major utility lines on the road, and is the largest undeveloped piece of land in the city limits. Jackson county is growing rapidly and building a lot of housing, but the city of Maysville has been underdeveloped. They did just approve 2 large data center projects which I think will jump start the city into more growth. The local city lines have water pressure limits due to poorly functioning wells and council is fixing the issue by purchasing water from surrounding counties. The sewer lines and reclamation facility are maxed out for residential use, but supposedly have retail/commercial capacity. The engineer I spoke to said the system needed to be replaced ideally, but they could increase capacity if needed. 

There have been several offers at lower prices, but all have fail in due diligence as a result of lack of utilities.

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

**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: [[email protected]](mailto:[email protected])  
**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)  

Joel Landon is with Heritage IRA, based in Salt Lake City. On today's show we are breaking down the different types of retirement accounts and why you would choose one over another. To connect with Joel, visit heritageira.com or email him directly at [email protected].

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

**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: [[email protected]](mailto:[email protected])  
**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)  

Mike Zlotnik is based in New York City and he invests in multiple asset classes across the mid-western part of the United States. On today's show we are talking about how the investment thesis has changed over the past few years with a renewed emphasis on safety and cash flow.

To connect with Mike, visit https://bigmikefund.com/ where you can find both his podcast and his corporate site.

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

**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: [[email protected]](mailto:[email protected])  
**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)  

Coming to you live from Tulum Mexico where we have just wrapped up our Build to Scale Mastermind. This is our annual event, held roughly at the same time each year. We choose this time because it is a chance to start planning for the next calendar year before the start of the next year. 

Unlike past years, this year focused on more than just goal setting. We still did spend considerable time on goal setting. But we also spent time on the topic of business scaling with an emphasis on mergers and acquisitions.

-----------

**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: [[email protected]](mailto:[email protected])  
**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)  

On today’s show we are looking at what I consider to be one of the most ridiculous market forecasts from what should be a respectable institution.

The IEA which is based in Paris issued an updated demand model in the run up to the UN’s annual climate change talks, this year scheduled to take place in Brazil. 

I believe it is important to understand energy markets, even as a real estate investor. It’s important because energy is the economy. You cannot have a unit of economic output without a corresponding unit of energy being consumed somewhere in the world. These two have been inextricably intertwined throughout history. 

The problem with the IEA line of thinking is that it looks at oil and gas  consumption without considering oil and gas supply. Supply and demand cannot be unbalanced for more than a few months. The oil industry only holds about 40 days of supply in inventory worldwide. So if supply and demand fall out of balance, prices will swing considerably which will ultimately affect demand. In the short term demand is relatively inelastic with price. You’re not about to drive 3/4 of the way to work if the price of gas goes up by 1/3. But over time, capital decisions are made based on the economic model associated with each energy source. 

The US hit peak oil supply this year. That means the cost and effort to extract a barrel of oil from the ground is going to go up from here. The IEA report puts the global daily consumption of oil at around 100M barrels per day. 

Under the “Current Policies Scenario,” which is based on existing policy and regulations, global demand rises to 105 million barrels a day in 2035 and 113 million barrels a day in 2050, from 100 million barrels a day last year, mainly driven by petrochemical feedstocks and aviation.

There are a few problems with this analysis. The first is that global oil consumption is already 104.6M barrels per day now in 2025 and the IEA is saying that it’s going to take another decade to reach that demand.

The biggest problem is that their model puts too much emphasis on government policy as the primary driving force affecting oil demand. There is oil on paper and then there is oil in the tank. These are not the same. Just because someone in Washington or Paris or London issues a policy statement about oil consumption you have to remember that the decision to consume oil consists of billions of micro decisions.

-----------

**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: [[email protected]](mailto:[email protected])  
**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)  

The latest announcement from the White House is a proposed 50 year amortization loan in order to improve home ownership affordability. 

This proposal is naturally met with criticism from all sides. The obvious advantage is that the principal portion of the monthly loan payment can be spread over a longer time period and thereby reduce the size of the loan payment. 

The purists will argue that the amount of interest paid over the life of the loan balloons to unreasonable numbers. 

Perhaps the largest criticism has been that lower monthly payments will only have the effect of pushing housing prices higher. I personally think that two things would need to happen for that to be true. There is no question that home prices have risen faster than household incomes during the period from 2018-2022. 

The other argument is that if the amortization is extended to 50 years, it will have the effect of lowering monthly ownership costs which will then cause prices to be bid up to even higher levels outside the affordability of ordinary citizens. 

Theoretically I understand that argument. But in reality I don’t think it will play out that way in practice for several reasons.