A few people through the years have poked fun at me because I am so enthusiastic about people getting involved in Las Vegas Commercial Real Estate (CRE).
Some have even joked that if they win the Power Ball or Mega Bucks lottery, I would be the first person they called. (Not to share it with me, but to help them buy a Las Vegas CRE property.)
I immediately tell them: "But you don't have to be rich to buy a CRE property. You should start with something small and affordable."
Case in point: I know of a small office (1,900 SF) that is for sale at $299,000!
Yes, it is located on a major traffic road that used to be homes. But, since the traffic on the street is so high, the City has allowed these home owners to convert their houses into small offices.
Now, the asking rents in this area run about $1.00 PSF ($12 PSF Annually) -- which is not bad considering that this location is a very good spot for first time tenants to get their growing businesses going.
And the investment of $299,000 is about an 8% Cap Rate on the outside looking in.
And of course if you don't have the total sales price amount, you could get an 80/20 Loan-To-Value (LTV) Loan. (Please consult a reputable loan company in your area for guidance on this issue.)
Anyway, if you are willing, this is a very good place to start your CRE portfolio.
So, if you live in one of the higher priced metro residential markets, you know that this is probably less than you spent buying your personal residence.
Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes
Some have even joked that if they win the Power Ball or Mega Bucks lottery, I would be the first person they called. (Not to share it with me, but to help them buy a Las Vegas CRE property.)
I immediately tell them: "But you don't have to be rich to buy a CRE property. You should start with something small and affordable."
Case in point: I know of a small office (1,900 SF) that is for sale at $299,000!
Yes, it is located on a major traffic road that used to be homes. But, since the traffic on the street is so high, the City has allowed these home owners to convert their houses into small offices.
Now, the asking rents in this area run about $1.00 PSF ($12 PSF Annually) -- which is not bad considering that this location is a very good spot for first time tenants to get their growing businesses going.
And the investment of $299,000 is about an 8% Cap Rate on the outside looking in.
And of course if you don't have the total sales price amount, you could get an 80/20 Loan-To-Value (LTV) Loan. (Please consult a reputable loan company in your area for guidance on this issue.)
Anyway, if you are willing, this is a very good place to start your CRE portfolio.
So, if you live in one of the higher priced metro residential markets, you know that this is probably less than you spent buying your personal residence.
Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes
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