The Real Estate Espresso Podcast

On today’s show we are talking about the importance of conservative underwriting. 

Lenders are not business people. They are not real estate developers. They don’t know how to manage risk in a complete sense. 

Then the lender changed the rules. The impact to our projects was negligible. What did we do that insulated us from the impact? We were more conservative. But just saying more conservative doesn't provide much insight. What did we do specifically?

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I’ve heard that a particular community needs more housing because there’s a new factory coming to town. There’s a new EV plant, a new battery plant, production is shifting for a new model car or truck at an existing plant. 

On today’s show we are looking at the early days and the modern day history of the auto industry.

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On today’s show we are looking at the latest economic data. The labor department issued new data last week which showed that the private sector payroll job creation was overstated from the period of June 2023 to June 2024 by more than 1.25M jobs. It basically cuts the private sector job creation in half compared to what was originally reported. 

It sure makes you wonder that the headline job creation seems to be stellar and resilient each and every month. With few exceptions, the number is quietly revised downward the next month. An then we had a major downward revision in August of 818,000 jobs for the 12 month period ending in March 2024. This latest revision shows what main street has been experiencing for some time. Job growth in the private sector is weak. 

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Matthew Bragg is based in the Finger Lakes region of upstate New York. He is running a third generation commercial "Design/Build" construction company with projects across upstate New York. On today's show we are talking about the challenges of building in smaller markets.