On today’s show we are looking at an event in financial markets that could represent a tipping point. These events have occurred with regularity over the years. Think of the Greek Sovereign debt crisis in 2012 that threatened to topple the entire European banking system. Think of Lehman Brothers in 2008. There was the bank failures in the US in 2023. These events often expose the counter party risk that is inherent in our globally interconnected financial system. 

The problem is showing up in the latest spike in US Treasury yields. It happened very rapidly between May 1 and May 2 of last week. 

Now we have become accustomed to very high volatility in US Treasury yields. Most of that is routinely blamed on the unpredictable nature of the White House.

But this one was different. There was no news from the White House that fundamentally would affect Treasury yields. The threat to impose tariffs on foreign movies is not enough to move the needle. So who is dumping US Treasuries? What happened at the same time as the spike in US Treasury yields was a precipitous drop in the Taiwanese dollar against the US dollar. 

So who in Taiwan is dumping Treasuries? It turns out that Taiwanese life insurance companies had loaded up on US Treasuries and failed to purchase a hedge against interest rate volatility.  

Why did they not buy insurance? They thought the insurance was too expensive. The liberation day announcement from Donald Trump had been pending for weeks. It was making front page headlines around the world, and still the risk managers at these Taiwanese insurance companies thought that they would take the risk and not buy the insurance. The high price of the insurance was a reflection of the elevated risk.

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

**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 Thursday evening, my development company will be hosting a webinar with an update on the second year of our storage fund. We have invested in 3 assets so far and have more in the pipeline.

To register for the webinar, visit: https://event.webinarjam.com/register/36/qq2o7h6p

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

Today's question come from Ramon who asks:

"Wondering your perspective on Warren Buffett’s recent assessment of real estate investing vs stock market investing (link below). Seems to me that he completely ignores the ability to add value / force equity in real estate which takes work but can generate massive returns. That is not possible to do in stock market investing unless you take very large positions that are beyond the reach of average investors or really anyone but the largest of investment/hedge funds. "

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

**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 methods that major importers are using to delay or outright eliminate the impact of tariffs. Let me be clear, I’m not a global transportation expert, nor am I here to offer any legal advice on what you can and can’t do when it comes to importing good to the US or any other country for that matter. But I can point you in the direction of areas in which you might want to perform your own research.

Tariffs and duties have been making daily headlines for the past month. We have also seen a lot of volatility when it comes to the regulations that seem to change from one day to the next.

If you are importing goods to the US that might be already on a ship, you might be understandably upset to find that an order you placed months ago would face a steep tariff charge that you had not planned for, and then maybe a few weeks later discover that the tariff you paid might be changed, lowered, or maybe even eliminated. 

As a business owner, what can you do to protect the value of your inventory?

To start with, you don’t need to pay the tariff the second the goods enter the country. Again, I’m not offering advice here. This is something you will want to check out for yourself with the consultation of experts. There is something called a customs bonded warehouse. The items in a customs bonded warehouse are physically in the US, but have not cleared US Customs. The duty only gets paid when the goods leave the warehouse. 

So let’s say that you have several months of inventory in your supply chain. You maintain a steady flow of material entering the country and those deliveries are coming every 4 weeks. You have 3 months until you deplete your domestic inventory. So instead of paying the tariff when the container comes off a ship, how about putting those contents in a bonded warehouse instead?

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

**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 Brick is based in Portland Oregon where he is a nation wide expert on safety and security. On today's show we are talking about the various approaches to security when looking at properties.

He is also the author of several books on safety and security which can be found on Amazon or on his website.

To connect with Jason visit https://www.safestfamilyontheblock.org/

-----------

**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 George and I are talking about how to delegate authority within a negotiation. We're drawing on George's history within the Trump Organization and discussing where and when George had the autonomy to negotiate without checking back with the boss.

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

**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 whether it makes sense to include solar energy as a component of your projects.

Solar power systems used to rely very heavily on subsidies because there was no way you could rationalize them on a financial basis without it. These days the cost of these systems have reduced to the point where they are much easier to justify. 

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

**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 the first day of each month we review the book of the month (BOM). Our book this month is "Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game”

The traditional narrative of entrepreneurship often conjures images of two guys tinkering over a prototype in a garage that has been converted into a lab. Think of sleepless nights, ramen noodle diets, and the daunting task of building a business from the ground up. It’s a path fraught with risk, where the vast majority of startups fail within the first few years. Walker Deibel’s "Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game" offers a compelling and meticulously argued alternative: he argues that you should bypass the perilous early stages by acquiring an existing, profitable business and then focus on growth from there. 

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

**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 another look at hyper local versus macro. Today we’re comparing Boston, Charlotte and Phoenix, three cities at almost polar opposite ends of the country. 

But first, at my company Y Street Capital, we are building. A lot of investors got into trouble over the past few years because of irrational exuberance and a tendency to look only at the upside and ignore the downside. At Y Street Capital, we believe that underwriting is a skill that goes way beyond having a spreadsheet. It consists of a discipline of crafting market assumptions that result in a safe project. I see too many investors manipulating their spreadsheets in order to get numbers that work. This is a very dangerous practice and it requires a strong discipline in underwriting to avoid that temptation. 

Our consulting division provides underwriting services to other investors and developers all over North America. If you find yourself tweaking numbers in your spreadsheets, you may want to consider engaging our consulting group to get an institutional quality underwriting completed for your projects. Reach out to me at [email protected] and our team of experts would be happy to help you with your underwriting. 

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

**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)  

Yesterday Canada held its Federal election. While Canada has a number of political parties, it was really a 2 party race. Mark Carney running for prime minister is head of the liberal party and Pierre Poilievre is head of the conservative party. 

When Justin Trudeau stepped aside a few months ago, the liberal party elected a new leader in Mark Carney. Mark Carney served as governor of the bank of Canada, and in an unusual step as governor of the bank of England. To have the bank of England select an outsider to head their central bank was an unusual step. But it was clear that Mark Carney had earned a considerable amount of trust globally as a solid central banker. He presided over the Bank of Canada through the GFC in 2008 and frankly Canada was largely unaffected by the crisis in the US, which did by the way spill over into Europe.

The one central figure in the election was not even a candidate. Donald Trump’s statements about trade, annexation, military spending, and border security became defining issues in the election. 

The Canadian people have spoken and the country has elected a liberal minority government. 

My assessment is that the conservative leader continued to use campaign slogans from 6-12 months ago. He failed to pivot to the reality on the ground which was the new candidate facing him in Mark Carney, and he failed to pivot in a way that will address the negotiation with Donald Trump. Mark Carney did a much more convincing job of demonstrating leadership throughout the campaign. Pierre Poilievre did not play the part of Prime Minister and I believe that he did not convince the electorate at large that he was up to the job. This election had extremely high voter turnout compared with previous elections.

As a developer who is active in both Canada and the US, I really would have been happy with either party winning the election. Both had pretty decent initiatives aimed at stimulating housing. The strong fundamentals combined with a removal of several barriers makes investment in some markets in Canada extremely attractive. 

On today's show we are going through the real estate incentives in the liberal platform.

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

**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 homes for sale inventory across several markets in Florida. We have been experiencing the so-called lock in effect with many owners holding onto very favourable loans at historically low interest rates. 

Even if someone needs to move, they will often rent out their primary residence and then rent a home instead of buying rather than sell and be forced to pay a much higher interest rate when buying a new home. 

There are signs that the lock-in effect is now starting to wane somewhat and the number of homes for sale is rising rapidly in several markets across the US. 

The reason we want to look at this is because the residential market does contribute to rental stock. In the condo market in particular, we see a large proportion of condos being offered for rent by owners of single units or small portfolios. The conventional wisdom is that somewhere between 20-25% of the condo market will contribute to rental market inventory. 

Markets that used to be hotspots like in Florida have seen a near meltdown in demand. The condo townhouse market in Florida is experiencing 9.7 months of supply. We often hear about the challenges in the coastal markets. But Orlando’s inventory in April 2025 is about 30–40% higher than April 2024, reflecting a substantial increase in available homes. The market has shifted to a buyer’s market, with a 7.73-month supply in January 2025, driven by high new listings and slower sales

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

**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)