If there is one thing that has dominated conversations over the past few weeks in the world of new construction and development, it has been the impact of tariffs and global trade on new construction projects. 

Yesterday the President outlined his administration’s plan for tariffs by country, along with some special provisions for the automotive industry. 

We also don’t know what the international response will be from China, Germany, Japan, Korea Vietnam and many others. 

There were a few countries that have been making headlines over the past two months, specifically Canada and Mexico. Yet these two countries were noticeably absent from the countries subject to the newly announced tariffs from the Rose Garden address on April 2.

That isn’t to say that Canada and Mexico are fully off the hook when it comes to tariffs. The automotive, steel and aluminum tariffs are still in place. The White House fact sheet says that tariffs affecting Canada and Mexico will not be stacked on top of existing tariffs. As you can imagine, this is a fluid situation and we might see further clarifications in the coming days and weeks. But that is what we know right now.

As I’ve been saying for some time, the biggest impact on real estate investors will be the flow of capital in the bond market which directly affects the cost of borrowing for real estate investors. Retaliation from trading partners that impacts treasury yields will have a larger impact than any tariffs. So far since the start of the week, we have seen treasury yields on the 10 year bond fall from 4.36% to 4.07%. In addition to monitor pricing due to tariffs, I'll be paying attention to the bond 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)  
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 Email: [[email protected]](mailto:[email protected])  
**Y Street Capital:**
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On today’s show we are talking about a very real risk that is affecting real estate developers and property owners alike. 

It’s always been a risk that a contractor might go out of business. Sometimes contractors allow themselves to get upside down financially. This can happen for a variety of reasons. Sometimes it’s the result of a client not paying them in a timely manner which causes a cash flow problem. Sometimes it’s the result of poor financial management. The contractor keeps trying to get new business to keep the lights on. By the time they realize that they’re out of cash, they start robbing from one project to pay another and the downward spiral begins. 

The problems are not confined to contractors. In fact, we are currently seeing problems at subcontractors more frequently. In the past day, I’ve heard of several subcontractors who are in financial difficulty. Fortunately, none of our projects have been impacted or affected. But the risk is always there.

When a subcontractor is in the throes of going bust, they will often ask for advance payments to procure materials. You will also see unexpected delays in supply of labor and materials arriving onsite. 

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

**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)  

Our book this month is "The Great Game of Business," written by Jack Stack and Bo Burlingham. It presents a novel approach to business management centered on open-book management, employee empowerment, shared financial responsibility, and what I would describe as the gamification of business. It argues that by treating employees as partners and educating them about the company's financials, businesses can foster a culture of ownership, improve performance, and achieve remarkable results. 

The book chronicles Stack's journey transforming Springfield ReManufacturing Corporation (SRC), a struggling division of International Harvester, into a thriving employee-owned company. Faced with a factory closure, Stack and his team embarked on a radical experiment: To buy the plant from International Harvester with a tiny downpayment and massive amount of debt. They needed to turn these assets into a revenue generating business or go broke. 

Rather than use the management methods from their prior career at IH, they opened up the company's books, shared financial information with all employees, and taught them how to understand and influence the numbers. This became the foundation of "The Great Game of Business."

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

**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 in the middle of due diligence on a property that recently experienced a fire. Performing due diligence is more complex because there are more risks that are difficult to quantify. We have not made a decision on this particular property. But we are sharing the thought process that is present during this phase of project.

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

**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 show is a recording from a talk I gave earlier this year in New York City. In this talk I am making the assertion that all real estate is the result of designing a product with a specific customer in mind. It's viewing the finished property through the lens of product design with a specific customer in mind.

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

**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)  

Jason Hartman is well known as a speaker and podcast host in the world of real estate investing. On today's show Jason and I are speaking about market selection and asset price inflation as a hedge against devaluation of the currency.

To connect with Jason, visit jasonhartman.com or find him by name on most social media platforms.

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

**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 some of the innovations in tenant screening that hold the promise of saving time and increasing the quality of tenant screening. 

The processes are evolving driven by advancements in technology, changing legal landscapes, and growing market demands. Whether you’re a landlord, property manager, or a tenant screening service provider, staying ahead of these trends is crucial for optimizing tenant selection processes and ensuring compliance with fair housing laws. On today’s show, we’ll explore five emerging trends shaping the tenant screening industry.

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

**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)  

I often get questions from investors about how and when to form a family office. This is particularly urgent when there is a generational cascade of wealth from parents to kids, and eventually grandchildren.

In fact the most frequent question I get is how much net worth is required to form a family office. When I think about this, the size of the assets determines the scope of solution. But the problems that persist are independent of the amount of wealth we are talking about. 

I learned about all of this when I was 18 years old. My mother unfortunately died when I turned 18 and my father didn’t have the understanding or the inclination to manage the family portfolio. That task fell to me from the time I was 18 years old. My mother set things up as a testamentary trust with my father as the income beneficiary of her estate and with my sister and I as the capital beneficiaries of her estate. We had a lawyer and an accountant  who fulfilled an important role in helping to guide a set of decisions that were right for our family.  Fortunately my sister and I got along well and we didn’t have issues. But I’ve seen it in many families. 

form irrespective of the parental guidance. Those differences get amplified when it comes to money and individual beliefs about money. 

You see money is just fuel and whatever beliefs you have about money are simply accelerated based on the amount of money in play. If your belief is that money is something to be used to buy income producing assets, then you will buy more income producing assets. If your belief is that money is for buying luxuries, then you will buy more luxuries. If you believe that money is for philanthropy and solving social problems, then you will vector your investments in that direction.

It all starts with bringing clarity to the goals, not just for one individual, but for the family as a whole. I call this part of the family governance and that's the number one thing that a family office will do for you is bring your family together around how the family's money is to be managed.

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

**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 is another AMA episode (Ask Me Anything). Today's question comes from Emanuel who asks:

"Are short-term rentals still a profitable niche, or should investors pivot to long-term leases given regulatory changes?"

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

**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 predictions about the current initiatives from the White House range wildly from a Ronald Reagan type outcome where the short term disruption results in a leaner more efficient government with better fiscal balance and a period of renewed economic prosperity. The other predictions point to a Jimmy Carter style disruption that results in stagflation. The arguments for each can be convincing. On today’s show we are looking at the negative implications of retaliations in the trade war that the White House has initiated. 

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

**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)