172: Real Estate Market Selection with Victor Menasce

Your market choice is more important than your property choice. One of the most prominent real estate developers in the United States, Victor Menasce, tells us how he selects a real estate market. Investing in larger metro areas is generally safer than investing in smaller metro areas because geographies are better diversified. Being invested in only one investment market is a mistake. You’re undiversified. Should you pay more or less than the construction cost of a property? Victor tells us the difference between price and value, and why that matters to you. Four factors drive price/value: 1) Construction cost. 2) Availability of money. 3) Inflation. 4) Supply and Demand. Victor is an expert at selecting markets, developing, and raising capital for deals. If you’re developing or making a large real estate investment, think about how consulting Victor could be a great investment. Connect with him at VictorJM.com. I join you from north Florida today because I’m out looking at, yes, real estate markets!

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01:45 Investing in only one geographic market is a mistake.
02:30 Recency bias.
08:00 Investors should start with economics and the market, not the property.
11:48 People are moving south.
13:10 Primary drivers. Oil & gas.
14:25 Real estate use type: senior housing, residential, shopping malls, office, medical.
20:25 Solving problems and meeting needs. Get out from behind your desk.
23:40 Buy on the line; move the line.
25:18 Formulas and numeric rules of thumb.
27:20 Jetsons vs. Flintstones.
29:55 Relationship-based deals.
32:24 Price vs. value.
37:43 Your turnkey provider has local knowledge.