The Real Estate Espresso Podcast

Richard Wilson is the founder and CEO of the Family Office Club. The organization caters to high net worth families and deal makers. On today's show we are talking about the purpose of a family office and the benefits to a high net worth family. To connect with Richard, visit any of the following links:

familyoffices.com

[email protected]

Check out nearly 1,000 videos on their Youtube channel.

https://www.youtube.com/@FamilyOfficeClub

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**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 the residential real estate market in select areas of Florida. Many local brokers are sounding the alarm that rising inventory of homes for sale is causing prices to fall. These markets are experiencing multiple headwinds at the same time.

Some of the shifts are reminiscent of 2008. 

For example in Cape Coral, homes for sale inventory is up nearly 1000%. There are currently over 800 homes for sale in Cape Coral as compared with 80 homes for sale two years ago. Now some would say that this is not a fair comparison. We need to look at other metrics like the long term average inventory and how does the current inventory compare against the long term average. 

Today’s inventory level appears to be on par with what it was in 2018 and 2019. Nobody was sounding the alarm back in 2019. So why is it a problem now if that same inventory level was not a problem then?

The difference comes down to affordability. Prices are 50-60% higher today than they were in 2019. That means that homes are simply more costly to own.

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**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 conducting an experiment in artificial intelligence. Of course AI is supposed to revolutionize our lives for better and for worse. I conduct these experiments from time to time to assess the state of natural language models and how they are maturing. Now you are probably wondering whether I have been using artificial intelligence in the production of the real estate espresso podcast. The answer is no. You are getting 100% me and my team when it comes to the creation of the show. The only instance where we have used AI is to brainstorm ideas for future topics that I would feature on the show. Even then, we have never taken the topics verbatim.

What I’ve discovered is that the quality of output from an AI tool is highly influenced by the way you ask a question. Some ways of prompting the tool result in a very poor quality response and others give a much higher quality response.

I found that asking the AI bot for more ideas is a fairly effective way of getting a broader range of ideas than you might have imagined on your own. So on today’s show I’m going to review the question that I asked the Microsoft copilot and it’s responses and then provide my commentary on the entire process.

I have an 8 acre parcel of land across the street from a high school that is zoned commercial. on the other side is a residential neighborhood . I'm thinking it would be a good location for a restaurant and maybe some neighborhood amenities such as a coffee shop. how would you suggest to subdivide the 8 acres and what types of businesses would you propose for that location?

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**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 Steve who asks:

"What is the purpose of a city having a general plan?   Does the law require it and what benefits and disadvantages does it provide the city and developers."

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**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 wave of protectionism that seems to be sweeping several of the world’s major economies. The question is, “What does it mean and what are the long term implications?”

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**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)  

Transforming the Irvine Ranch is the story of a 93,000 acre ranch into the city of Irvine California. It is one of the most studied master plans in university courses related to urban planning.  

On Saturday’s show my guest was Michael Stockstill, one of the authors of the book. On today’s show we’re going deeper into the book itself. The reason the book is so impactful, at least for me, is that virtually every complexity that could impact a development project is chronicled in the history of Irvine Ranch. 

I personally like the biography genre of book. But in this case, this isn’t the biography of a famous person. It’s the biography of a ranch that became a city. 

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**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)  

Kevin Bupp is based in Tampa Florida, but invests in mobile home parks and parking lots nation wide. On today's show we are talking about the similarities between mobile home park investing, how the market has changed in the past 24 months and the criteria for investing in parking assets.

To connect with Kevin you can find him on most social media just by search for his name, or visit investwithsunrise.com

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**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)  

Michael Stockstill was the public relations manager and then the government relations manager for the Irvine Corporation. He's also the author of the recently published book "Transforming The Irvine Ranch". On today's show we are talking about the challenges associated with building a new city. It's the story of the transformation of 93,000 acres of ranch into what is now modern day Irvine California.

To connect with Michael and to learn more, visit https://thebigplanbook.com/

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**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 dangers of speculating and making purchases that are significantly above market. Some markets like Vancouver and Seattle have long experienced a significant influx of foreign buyers who have created upward pressure in the market over a sustained period. 

Some luxury condo towers in Vancouver were offering pre construction units in luxury buildings at stratospheric prices of $2,600 to $3,000 per square foot at a time when comparable units that were one or two years old across the street were selling for $1,500 per square foot. The condo developers were still able to sell enough units to get their construction financing at these high prices.

Of course nobody can possibly predict the future. The chances of all the planets aligning and delivering the required value increase are so slim that you had better be buying the property all cash. If you’re intending to finance the purchase, chances are high that the property will appraise well below the purchase price when it comes time to close. No lender is going to rate lock and approve a loan that is taking place 3-4 years in the future. 

The developer was irresponsible for proposing those high sales prices and the construction lender was irresponsible for lending against a project that had such a high premium to the market.

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**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 a verdict issued by the US Supreme Court in the case of Moore vs the United States. When the court rules unanimously then you can have reasonable confidence that the court’s interpretation of the law is consistent. But when you have dissenting opinions by judges who are supposed to be the most learned of legal scholars, it leaves major questions about the fairness of the legal system. In this case it was ruled by a vote of 7-2.

The case leaves the door open for further attribution of income that was not received by taxpayers and is deemed to be taxable even though the funds were never received.

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**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)