Foreign Investors Overpay for Las Vegas 'Strip' Drug Store!

Can it be true?  Please, say it isn't.

Did a foreign investment fund overpaid for a freestanding drug store here in Las Vegas.

I do NOT know how to get a hold of these investors and I wish I did.  Why would anyone pay more than a $1,000 PSF for any property.  Where is the upside?  And, what was the Cap Rate that this will turn out to be once the dust has settled?

It never ceases to amaze me that anyone, whether foreign or domestic, would fork over so much cash for a real estate property in which the ROI was so far out into the future that it may not even be calculable.

In the last year, I have been trying to get foreign investors interested in properties that are listed in the low 9% or high 8% Cap Rate range.  And, I am talking an ROI that will pay for itself in 11+/- years.  But, I have been having a hard time with foreign investors thinking that they wanted better deals.

Now, I heard that this has actually happened and I just can NOT believe it.

How stupid are these guys/gals?  And, can I have their contact information?  Talk about throwing away hard earned money.  This is NOT a good gamble and will turn out to be a really bad one -- once they realize that they have been hood-winked.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

Las Vegas Resort Properties For Sale!

About Four months ago, I blogged that there were a couple of Casinos For Sale.  Now, I want to update you on this:  There are Three For Sale and they are all Resort Properties.

So, IF you have the  pre-requisite amount of money or financial capacity, send me an email with proof of capacity, and I will forward a Non-Circumvent, Confidentiality and Commission Agreement for your company's Authorized Officer's signature.

Once executed, I will forward the information on the Resort Property that "fits" your financial capacity and investment criteria.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

Sleazy, sleazeballs are everywhere!

Just when I thought I had seen everything, another event comes along and tries to make my life more...interesting.

Last week, I received a telephone call from another NV licensed agent. (To protect me from litigation, I will be using assigned alias'.)  "Agent" had written an offer and submitted it to my Seller through an unlicensed person who had decided he could act as a real estate broker "Sleaze Non-broker" through his sleazy Non-Agent.  (Still following?)

My Seller hadn't -- yet-- contacted me about the received offer, but "Agent" told me that the offer was for $3.7 Million.  This is much more than I listed the property at.

So, I asked "Agent" to email the offer and I would discuss it with my Seller.  Contacting my Seller, he said he was going to counter at a HIGHER PRICE!  Taken aback, I explained the situation with my Seller, that from what I saw in this offer, this was a one time offer, and was to be accepted "As Is."

He immediately decided to not accept the Offer.  I asked him to meet me at my office because I said there were other language provisions in the offer that were not -- correct?

When he arrived, I pointed out that the Offer was filled with clauses that prevented him as the Seller from: a.) collecting the full $3.7 Million purchase price; b.) prevented him from suing the Buyer IF he as the Seller found anything during the escrow to be wrong; and c.) the Buyer had a Power of Attorney clause inside of the offer that would allow him to make Seller decisions during escrow.  Huh?

My Seller was upset.  Though he is NOT born in America, he has lived here the majority of his life.  He was upset that his "Friend" -- the so called "Sleaze Non-Broker" had called and convinced him it was a good offer.  And, when I pointed out that the total amount of Money he'd actually be entitled to upon the close of Escrow was $50,000.00 Max!,  He was not amused.  That's correct: Fifty Thousand Dollars!!  I asked him to tell anyone making or trying to submit offers to have them talk directly to me -- ONLY!  He agreed.

And, he was most upset that he would NOT be able to sue WHEN he discovered that he would have agreed to NOT SUE if he endorsed the offer.

I would love to tell you these agents, non-Brokers, and supposed Buyers' names so that you can avoid them at all cost.  But, as I said above, I want to avoid litigation.  As for people who know me well, you can ask me at some time in the future quietly.

For "Honest" Information about Las Vegas Commercial Real Estate Investments, contact David Howes at: david@davidhowes.net OR 702-501-9388

Are Celebs Dense? Or, Just Receiving Bad Advice?

Last week I had put out a marketing letter to various Hollywood Celebrities and Executives that IF they were going to attend the CinemaCon gathering in Las Vegas, that they should at least take some time to review some very well priced Las Vegas Commercial Real Estate (CRE) that in the long run should help them make a higher than currently normal (+/-9%) Return On Investment (ROI).

Unfortunately, not a single Celeb! or Hollywood Exec took me up on my offer.

Now, that's NOT unheard of -- I mean a Celeb! or Exec ignoring an unsolicited offer.  C'mon!  That's normal.  

But, what is startling is that these very same Celebs! and Exec's are ignoring the single fact that the future income potential of these select few properties, that I know of, possess great future monthly income power than their next film or TV deal.  AND, once these properties have been acquired, they will be OFF the Market to the wiser investor and be gone.  My gut says that these Celebs! and Exec's are either paying way too much attention OR not enough attention to the national media?

I say this because the following article, published last week by the AP, indicates that foreclosures are down in Las Vegas.  This is a strong indicator that buying in Las Vegas NOW! means deals!  And it indicates we are at; OR, we are very near the bottom as to where CRE property values are headed.

"Las Vegas’ 1st quarter foreclosure rate 8th in nation

Associated Press

Thursday, April 26, 2012 | 2:30 p.m.

Foreclosure activity in greater Las Vegas has dropped 26 percent quarter-over-quarter, putting the area's foreclosure rate at 8th in the nation.
Data released Thursday by RealtyTrac shows one in every 82 Las Vegas-area housing units saw a foreclosure filing during the first three months of 2012. That's down about 61 percent compared with the same period in 2011.
Foreclosures in Nevada have been declining since a state law took effect in October, requiring lenders to file more paperwork to foreclose. In March, the state ended a 62-month streak as the foreclosure capital of the country.
The report shows Las Vegas' foreclosure rate trails seven California metro areas. The central valley cities of Stockton and Modesto top the list."

So, I can only assume that these high publicized Celebs and over paid Exec's are either ignorant to the facts as to what is truly happening in the Las Vegas CRE market; OR, they are getting really bad advice from their financial managers/planners -- who in turn are ignorant to these facts.

Oh, well.  It is their loss of the potential 9% or higher Cap Rate ROI; or, the loss of the potential rebound equity a buy and flip would provide once the market has stabilized.

And, even though Celebs! want to be just like John Wayne; or, even Bob Hope with their Hollywood careers, NONE have a clue as to how they really acted OFF camera.

You see, these two Hollywood ICONS -- when they were away from the camera -- built Real Estate Empires that continuously grew throughout their long careers.

John Wayne was such a driving force in the development of Orange County, CA, why do you think they named their airport: John Wayne Airport?  And, Bob Hope was instrumental in developing Toluca Lake, CA.

It's a bitter pill to swallow.  But, today's Celebs! and Exec's are too wrapped up in trying to become famous.  They just do NOT understand that true wealth and fame is earned through real estate.  Sure.  Celebs! will make money Acting.  And Hollywood Exec's will make money on Film & TV deals.  But, making money monthly through acting and dealing alone will not last as long as a net leased real estate acquisition will.

Through their careers, one day these Celebs! and Execs will realized they missed the greatest opportunity that is happening RIGHT NOW!  The truth always prevails!

And when you consider that 2/3's of ALL Billionaires have made their billions through Real Estate, the Celebs! and Execs dreams of stardom will fade quicker than they realize and that Hollywood income will fade rapidly.

However, IF they acquire one or two Net Leased Investments, this monthly income should continue to meet their income needs sufficiently long into the future.

For Information about Las Vegas Commercial Real Estate Investment Property, contact David Howes at: david@davidhowes.net OR 702-501-9388!

Las Vegas Resort Casinos For Sale? Yes! I know which ones!

Having lived and worked in Las Vegas since 1995, I have learned a thing or two about how 'business' gets done in this particular neighborhood of the country.

One thing is: Las Vegas real estate requires a built up client base.  So, in the 16 plus years working and living here, I have developed -- through hard work -- relationships with 'key' people who can help me help you.

Thus, this gives me an advantage that you need -- especially IF you are interested in acquiring a Las Vegas Resort.  Knowing which 'key' person to approach requires an important decision on your part: Go it alone and see what happens; OR sign me up to help you get to those people.

Now, most Resorts in general do NOT like Real Estate Brokers -- at all.  They feel we are an unnecessary element that gets in their way.  I understand their plight.  I have seen, first hand, some Real Estate Brokers way over-charge their Buyer clients simply because the Broker thinks the information about what is for sale, or even who to present offers the offers to, is worth more than gold.

And, because those Brokers think they are special, that is key to my success.  Yes.  I know which Resort properties are truly being considered for sale!  And, "Yes!"  I know the 'key' people to contact.

And, unfortunately, just as the other Brokers, the key element involved requires you -- as the Buyer -- to  compensate me.  BUT, that is where the difference lies.  I do NOT demand a large commission fee.  It is ridiculous to demand a 1% Fee on say a $1 Billion dollar property.  What's that? $10 Million?

Given that Resort prices are mostly in the hundreds of millions, charging 1% can be too much.  So, I have a flat compensation fee.  Now, IF there is a Broker Chain where two or more Brokers want a piece of the pie, just so they can pass along a client name or telephone number, then, of course, that will require an additional amount.

However, IF you are truly interested in acquiring a Las Vegas Resort property, my suggestion is to forgo the Broker chain, and sign with me directly as your Broker.  And, "Yes!" that requires an officer of your corporation duly authorized to sign a NCCCA that will compensate me directly from Escrow upon the Close of Escrow or the Sale!

But, remember, I do know which Resort property(s) are actually for sale.  Signing me up to represent you doesn't mean a deal will get down.  That could take time and of course attorneys.  But you will actually get closer to submitting an LOI or Offer to the correct person; which gets you closer to Resort Ownership; which with my help -- and you compensate me a fee to represent you -- is a small price to pay for a Resort casino hotel ownership.

Lastly, ALL interested parties will have to disclose their financial capabilities to me.  That way, I know upfront that you are able to complete a purchase prior to making an offer.  And getting that LOI or Offer with the appropriate financial qualifying paperwork to the 'key' person, protects my reputation as a Real Estate Broker and will allow them to know that they would prefer to work with me in the future.

I appreciate your patience and tolerance in the matter.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net OR 702-501-9388

BEWARE! California RE Agents Posing as Buyers in Nevada!

For the second time in the last twelve months, a "Buyer" calls me and asks for information about several properties that I have been marketing -- either my own listings or a couple of my Real Estate Agent friend's listings that I want to help them sell.

Of course, I ask the usual qualifying questions about money, their real estate property ownership experience, etc.  But, beginning today, I need to re-start asking the most valued question of all again, "Are YOU licensed?"

You see, recently I received an email and then a call from a "Buyer" who works at a California based capital investment company.  He proceeded to present himself to me as the "Buyer."  And, since he and his partner were going to 'Buy" some Las Vegas distressed properties, he wanted me to get him information about various properties that he said he has experience in acquiring and investing in Las Vegas CRE.

Well, after listening to this guy tell me how he is able to raise capital, acquire properties, re-position them economically, and then, re-sell at a later date, I completely left out the the above question that I should be asking right up front with every Buyer who approaches me.

Well, after a couple of weeks of going back and forth, I began sensing something just wasn't right.  So, I surprised him with the most important direct question: Are you a licensee?

To my surprise, he knew what that meant.  And, the reason he knows this term is because only licensees are familiar with that term because in the course of their licensing experience they have heard it used about them by the state licensing division.

He admitted he was licensed, challenged me to check him out, and was going to present the properties to real Buyers.  He said he would get back to me.  I asked for a co-brokering agreement -- to which he turned to some one on his end and stated: "He wants half the commission."  Boy, I never knew California Real Estate was so bad right now that CA licensees would have to go out of their way to screw NV licensees.

I asked for his broker's name and contact information.  He gave it to me and I said I'd need to talk to his Broker to continue working with him.

Chest fallen, I then composed an email to the agent that suggested since we were already working on finding properties, we have an oral agreement to share any commission on the properties 50/50 that I already sent him.  But, I still want to hear from his Broker so I have an agreement in principle which would solidify the oral agreement.

So far, there has been no return email either from the agent or broker.  However, my attorney friend said, since he failed to disclose his status up front, I would have a legal basis to file a law suit against the agent AND his broker for failing to disclose "as soon as possible' IF they do proceed to help a Buyer acquire one of the properties that I sent him -- IF they close.

Moral of the Story: Expect the unexpected.  I guess that is a bit more civilized than gun them all down and let God sort them out.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net OR 702-501-9388

National Recovery Underway! Las Vegas doesn't even get mentioned!

There was a recent CNBC report that the Real Estate Recovery is a Tale of Good, Bad & Ugly.

Just about every market that has high foreclosures in the last few years was given a mention as to how that market is beginning to show signs of recovery.

One of the most glaring was that Las Vegas didn't even warrant a mention at all.

Sure, Miami , Phoenix, Atlanta and even a general mention that all of California has seen sales that are up a 5% month-to-month ratio are talking about as being in recovery.

But, what was an oversight on CNBC's part is that Las Vegas has been showing signs of recovery, too.  Sure, residential real estate is being bought up by investors who are trying the old stand by buy-and-flip procedure that was the most important reason we got into trouble in the first place.

But even nationally the average sales price on a median SFR has been steadily falling, too.  And, if Las Vegas has shown the very same sale price decline, why is the nation recovering and Las Vegas still lagging?Are we really recovering nationally then?

And, as for Commercial Real Estate (CRE) in Las Vegas, there have been spots where buyers have just bitten the bullet and pulled the trigger.  Cash investors in SFR's have been buying up homes only to see the value decline on average 5%.  And since I only work in CRE, I must be working with smart(er) clients, or they are bigger bottom feeders than I thought.  Because, most of these clients are still waiting.  AND, there are steals currently on the market as I sit here at my computer and write this.  But, for some reason, my car sales skills have waned, too.

I have one very important question:  Why does a CRE net leased property in Chicago sell for a 6.5% Cap rate when the very same property -- with the very same tenant NOT get sold in Las Vegas at a 7.5% Cap Rate?

And, why are buyers shying away from even a Regional Credit Tenant -- who could very well be a National Credit Tenant in the near future, not get any offers at all when the Sellers are asking for a 9% Cap Rate?

I am truly befuddled by this topsy-tervy market.

My suggestion to you is get here yesterday!  CRE prices are at all time lows.  The banks are more than willing to look at low-ball offers because the banks -- for the most part -- have reduced their asking prices to low-ball range.

So, even if you have less than $1 Million and are looking for something to assist in supplying monthly income, contact me asap and I will show you details about these CRE properties you need to move on now!

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net