Richard Epstein is our returning guest. Richard is an American legal scholar known for his writings on torts, contracts, property rights, law and economics, classical liberalism, and libertarianism. He is the Laurence A. Tisch Professor of Law and director of the Classical Liberal Institute at New York University, the Peter and Kirsten Bedford Senior Fellow at the Hoover Institution

In this episode, we talked about:

- Richard’s View on Rent Control

- Rent Stabilisation VS Rent Destabilisation

Transcriptions:

Jesse(0s): Welcome to the Working Capital Real Estate Podcast. My name's Jessica Galley, and on this show we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time.

Jesse (22s): And what was characteristic of Justice Holmes and most of the scholars at that time is they were not always focused on the essential difference between competitive markets on the one hand, and monopolistic situations on the other. And so he said, rent control is dealing with this instability of one form or another. And you could never conceive about the fact that the instability is something that would induce new entry by other people, which bring the market back into equilibrium, and that the regulation that you wanted to put into place would in effect, stop that from ever happening.

Okay, well first of all, strict rent control, as it was originally defined, was you put a price in at a given point in time and you do not change that price at all. And so the control is very fixed. What then happens is the variation on that could be one of two. One is when the unit turns over to an independent person, you can then raise the rate.

Jesse (1m 22s): Hey, my name's Jess Golin. You're listening to Working Capital, the Real Estate Podcast. Today we're diving into one of the most enduring and controversial policies in American and Canadian housing Rent control. New York City first adopted rent control regulations over 70 years ago in the aftermath of World War II when policymakers sought to stabilize housing costs amid shortages. Since then, rent control and rent stabilization have become fixtures of the city's housing market. Defendant has protections for tenants, but also criticized for discouraging new development, distorting prices and reducing housing quality.

Few places embody this tension more than New York, where some tenants pay well below market rents well just across the hall. New renters pay multiples more for landlords, investors, and policymakers. This creates one of the most complex operating environments in US real estate. And now with New York elections on the horizon, the future of these policies is once again in question, will the political wins bring more restrictions or will there be a push to liberalize the markets and incentivize new housing supply? The outcome will have profound implications, not just for renters, but also for property owners, developers, and the broader investment landscape.

To help us unpack the history of the economics and legal framework of rent control, I'm joined by Professor Richard Epstein of NYU School of Law, one of the most respected voices in his field, known for his work on law and economics, property rights and regulation. This is a conversation that goes beyond the surface level talking points. It gets into the real consequences for housing markets, investment and urban development. So without further ado, my conversation with Richard. Richard, it's, it's been quite a while since we last spoke. As usual, a lot's transpired over the past year.

How are you doing today?

Richard (3m 4s): Well, I'm doing fine. Very busy. I have to go and teach property law in a couple of hours. And one of the topics which will co

A returning guest Tyler Cauble, is an Investor and Broker in Commercial Real Estate

In this episode, we talked about:

•⁠ ⁠Current Commercial Real Estate Market Landscape
•⁠ ⁠Impact of Rising Interest Rates
•⁠ ⁠Shift in Investment Strategies
•⁠ ⁠Tyler Cauble's Recent Investment Portfolio
•⁠ ⁠Brokerage Strategies in a Slower Market
•⁠ ⁠Business Development Tools and Techniques
•⁠ ⁠AI tools for Lead Generation
•⁠ ⁠Advice for New Commercial Real Estate Brokers
•⁠ ⁠Investment Trends and Market Observations

Returning guest Bob Knakal is the Chairman & CEO of BKREA, a commercial real estate capital markets brokerage company in New York City. Bob was the former Chairman of NY Investment Sales & Head of the NY Private Capital Group within JLL Capital Markets in New York City as well as Chairman of NY Investment Sales at Cushman & Wakefield and Chairman and Founding Partner of Massey Knakal Realty Services, New York’s #1 building sales firm.

In this episode, we talked about:

•⁠ ⁠Real Estate Market Overview
•⁠ ⁠Geopolitics
•⁠ ⁠NY Market
•⁠ ⁠Team Goals
•⁠ ⁠AI Impact on Real Estate
•⁠ ⁠Prospecting Tools
•⁠ ⁠2025-2026 Areas of Opportunities

Useful links:
Previous Podcast with Bob
https://podcasts.apple.com/gb/podcast/bob-knakal-nycs-billion-dollar-broker-ep181/id1505750263?i=1000663926821

Michael Munger is an American economist and a former chair of the political science department at Duke University,

In this episode, we talked about:

•⁠ ⁠Michael’s Bio & Background
•⁠ ⁠Housing Rights
•⁠ ⁠Rent Control
•⁠ ⁠Corporate Income Tax
•⁠ ⁠Line Legislation

Useful links:
Podcast: The Answer Is Transaction Costs
https://podcasts.apple.com/us/podcast/the-answer-is-transaction-costs/id1687215430

Colin Craig is a President of SecondStreet. In 2018, he was hired as President of SecondStreet.org and played an instrumental role in launching the organization. Colin oversees the organization’s groundbreaking research and storytelling activities,

In this episode, we talked about:

•⁠ ⁠Colin’s interest in Canada Healthcare
•⁠ ⁠“How bad is Canadian Healthcare”
•⁠ ⁠Activity based funding
•⁠ ⁠2025 Outlook

Useful links:
Health Reform Now https://secondstreet.org/new-documentary-health-reform-now/

Aliyah Mohamed is Chief Capital Officer at KingSett Capital. She joined in 2022 and has oversight of equity and debt capital strategy and formation, as well as marketing and communications.
Prior to joining KingSett, Aliyah spent over 16 years in Investment Banking at TD Securities, most recently as Managing Director, Real Estate, where she advised clients on a wide variety of mergers and acquisitions, divestitures, initial public offerings and equity and debt, public and private offerings.

In this episode, we talked about:

•⁠ ⁠How Aliyah Got into Real Estate
•⁠ ⁠Chief Investment Officer vs Chief Capital Officer Jobs Aspects
•⁠ ⁠Kingsett’s Main Focus
•⁠ ⁠Institutional Clients Industries
•⁠ ⁠Canadian Investment
•⁠ ⁠Fund Structures
•⁠ ⁠Acquiring Process
•⁠ ⁠Acquisition in the Canadian Market
•⁠ ⁠Diversity in Real Estate

Bryan Caplan is a Professor of Economics at George Mason University and New York Times Bestselling author.

In this episode, we talked about:

• Genesis of “Build, Baby, Build: The Science and Ethics of Housing Regulation” Book with Edy Branzei
• Why Housing Regulations?
• Gino’s View on Financial Intelligence
• Housing Shortages Despite Ample Land for Development
• Urbanisation
• Affordibility
• Rent Control

Useful links:

First episode - https://podcasts.apple.com/dk/podcast/education-economics-and-real-estate-with-bryan/id1505750263?i=1000624154266

Books - https://www.amazon.co.uk/Books-Bryan-Caplan/s?rh=n%3A266239%2Cp_27%3ABryan+Caplan

Gino Barbara is a real estate entrepreneur, he has grown his portfolio to over 350 million in assets under management and is teaching others how to do the same. Gino Barbaro is the co-founder of Jake & Gino, a multifamily real estate education company that offers coaching and training in real estate founded upon their proprietary framework of Buy Right, Manage Right & Finance Right

In this episode, we talked about:

• Government and Economic Policies
• Gino’s View on Financial Intelligence
• Real Estate Investment Challenges
• Happy Money Concept
• Real Estate Market Reactions
• Wealth Building through Real Estate
• Purpose-Driven Financial Goals
  
  

Useful links:

https://www.linkedin.com/in/gino-barbaro-03973b4b

https://jakeandgino.com/

Transcription:
Jesse Fragale (00:01.767)

Ladies and gentlemen, my name is Jesse Vergali and you're listening to Working Capital, the real estate podcast. Our returning guest today, Gino Barbaro, as a real estate entrepreneur, he has grown his portfolio to over 350 million in assets under management and is teaching others how to do the same. We could do a long -winded introduction here, but we've done it before and let's get it from the horse's mouth. Gino, how's it going?

Gino (00:23.35)

I'm doing good, Jesse. How you doing, brother?

Jesse Fragale (00:25.509)

I'm doing great. It's been a while. I think over a year since we last spoke. So I'm really excited to talk about what's going on in your corner of the world. In terms of where you're recording today, are you still in Florida? Do I have that

Gino (00:40.182)

Yes, I'm still living in St. Augustine, Florida. I would not leave it for the world. Best place on the planet to live, in my opinion.

Jesse Fragale (00:47.281)

So from, what was it, pizzas, pizzas on the East coast and now in Florida in the sun.

Gino (00:51.342)

Yeah. It's been a big transition. used to live in New York. I left back in 2017. I have six kids. So the kids were the older kids and the younger kids loved it. The two in the middle were like, Dad, what are you doing? You're killing me. Took them a couple of years. But then when COVID hit, everything changed. We're living in the land of freedom down in Florida. And they're like, OK, Dad, now I see why you moved down here. Then I started talking to them about property taxes and about no state income tax. And they're like, how much are you saving?

Why didn't you move sooner, dad? I said, I didn't know. What you don't know, you don't do it. So we love living down here, Jesse.

Jesse Fragale (01:25.339)

Yeah, we're just joking before the show about kind of the Canadian environment versus, you know, Florida obviously being a red state, very different, different experience being a landlord in that, in that state. So we haven't talked like I said, from the outset in a little while. So why don't you give us an update? You know, what, what's going on in your world right now in terms of, you know, what you're seeing in the market and the deals you're working on. I know

Gino (01:33.059)

Yes.

Gino (01:37.035)

I

Jesse Fragale (01:53.179)

from up north here, we see a lot in the news right now. You guys have kind of a crazy presidential run going on. There's the economies on the top of the list for a lot of business people and landlords. So what are you seeing out there and what's been going

Gino (02:08.398)

Well, the first comment that I'd like to make is I never thought I'd have to go on X to get my news. I never thought I'd have to do that. And I'll tell you, Jesse, I was never