The Everyday Millionaire

The Everyday Millionaire


Episode #63 – Victor Menasce – A Craftsman of Opportunity

June 04, 2019

“I’m starting with a blank sheet of paper. I’m not looking to find a deal, I’m looking to create a deal.” – Victor Menasce

Victor Menasce is an Ottawa based developer who is active in multiple markets across North America, specializing in new construction of multi-family apartments. He walks his talk in the book he authored "Magnetic Capital: How to Raise All the Funds for ANY Worthy Project” and he is also the committed host of his daily podcast “Real Estate Espresso”.

With a 25-year career in the technology industry as an electrical engineer and executive, Victor had a hectic life with business and travel until the day he decided he needed a change. Victor saw that opportunity within real estate and hasn’t looked back. He is the Vice President of the Ottawa Real Estate Investors Organization and finds his centre in building businesses and spending time with his wife and family.

 



Show Notes

[02:05] Patrick introduces his next guest, Victor Menasce.
[04:14] Victor and Patrick get rolling on their second take of this conversation!
[04:54] Victor offers his elevator pitch and how the two primary worlds he’s lived in professionally blend into each other so well.
[06:48] With his real estate developer hat on, Victor describes how he found himself on that winding path starting in Philadelphia, and the business approach they took to incrementally build on their experience and investments.
[09:16] Victor explains where their developments are primarily located, why they chose the area and what his strategy is: buy on the line, move the line.
[12:20] Patrick relates this strategy to a similar REIN fundamental, buying in areas of transition and watching the values increase over time. Victor takes it a step further to BE the catalyst for transition.
[13:42] Describing a project success, Victor relates how they built in a geographic area they thought may be too far from “the line” but with income projections now exceeded it brings huge value improvements to the building, their cap rates and their clients’ investment returns.
[15:20] Supply, demand and affordability dictate a broader population moving from city centres like Vancouver and Manhattan out to more affordable hubs with greater lifestyle advantages.
[16:52] Along with considering the economic fundamentals of an area, Victor provides an example of how they address the needs and the gaps of the end user to tailor their product, which ensures their longevity and success in the market.
[20:15] A well-rounded project team helps to have a comprehensive understanding of the heartbeat of a marketplace and sets everyone up for success.
[22:21] A craftsman, Victor’s unique and successful approach lies not in finding a deal, but in creating a deal. Seeing a broad landscape of opportunity vs. a tight, single shot also diminishes the need for competition.
[26:32] Victor describes five critical elements of attracting capital: develop relationships with investors, establish a track record, establish trust and transparency, offer a compelling opportunity and ensure there is ease and alignment between goals for the project and goals for the money – if it feels forced, don’t do it.
[29:05] With a successful career in the technology business already, what attracted Victor to the business of real estate?
[31:46] Expanding on that, and aside from the money, what lights Victor up about real estate? This man likes a good challenge!
[33:33] Victor starts his day first with how he wants to show up as a leader, so he can do what he needs to do and have what he wants to have in the realm of his life.
[34:53] As part of a team in different operational centres, Victor talks about how they create a foundational culture to serve as a touchstone when things get off track and within that, stay connected.