History shows businessmen make bad U.S. Presidents

Every once in a while, some one, somewhere comes up with the idea that the President of the United States should be a businessman.  Well, it's not anything new.

There have been several Presidents that have been businessmen; and as this article outlines, they have turned out to be some of the worst Presidents in the history of the US.

http://www.marketwatch.com/story/sorry-trump-past-businessman-did-poorly-as-presidents-2015-09-03

Now, when a businessmen runs for President of the United States, they usually stand on the platform of their business accomplishments.  They pontificate how they -- as a successful businessman -- can get "things" done.

What they forget is that in order to get anything done in Washington, D.C. or even passed by Congress is: you need tact and tenacity.

However, most businessmen have tenacity.  It's essential to their job.  But, the lack of tact is what usually dooms them as President.

A lot of my fellow real estate broker colleagues criticize Obama.  They think he has been the worst president ever.

But what I see is a man who has a tremendous amount of tact and tenacity.  Even if you disagree with Obama's politics, Obama did get things done -- even though he was slowed by a do nothing Congress.

And, that in itself was a helpful element to Obama's success.  The reason is, when Congress does nothing, the business environment is supposed to improve.  Obama did take over the office at one of the worst possible times.

The World economy was in a deep recession -- maybe even a depression. (I will let the economic scholars decide.)

But, even while being criticized heavily from both sides of every issue, Obama maintained his tact and tenacity.  He was able to accomplish more than I thought he would.

While searching the internet for businessmen that were elected US President, I found this article.   Here a retired military officer/physician did some research and points out that every businessman who was elected US President, turned out to be a bad President.

So, to see what I am talking about, please read this article.

http://thehill.com/blogs/congress-blog/presidential-campaign/262749-history-shows-businessmen-make-bad-presidents

(You may have to copy and paste the links in your browser to review.)

Read and enjoy.

Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes

8% Cap Rates have returned to Las Vegas!

This is to alarm you!  I am trying to wake you up!  Las Vegas CRE property prices have gone down, enough, to start telling everyone that there are now 8% Cap Rates available!

Generally, in Las Vegas, NV, most properties that would be listed at or near an 8% Cap Rate are properties I would NOT recommend to you.  These properties will have lots of hair on them and trying to trim the excess follicles will be daunting.

And, most of the problems could be that the tenant leases have less than 3 years remaining -- with no more tenant options; or they are a weak non-denominational church (type) tenant; or they are basing the 8% on whether or not the new owner will be able to re-lease the remaining vacancy up in a short time period post escrow (Not Likely).

However, because of the state of the economy, I have complied a list of CRE proeprties that you could acquire at an 8% Cap Rate or Higher.

So, if you have been considering acquiring a Las Vegas CRE property, I am now telling you, you can acquire that property for an 8% Cap Rate right here in Las Vegas, NV!

Where not even a year ago, these very same properties might be offered at a 6.5% Cap Rate range, you are now seeing them at 8% or Higher.

Now is you chance to acquire a property with better tenants or longer leases in the existing property.

For a complete list, please email me and i will reply with the list. Prices run from $600,000 to $10 Million.

Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes

Another Las Vegas "Strip" Property For Sale!

There have been a lot of 'hits' on my web site about Las Vegas Resort Properties.  Several have been searching for "Strip" Properties.

Fortunately, there are properties located on the Las Vegas Strip that could be acquired.  (And, I am direct to one Owner who will compensate me for bringing them a Buyer.)

For a First Time Las Vegas Blvd Buyer, the price may seem too high!  However, since the property falls under the Clark County Gaming Overlay; and, it is located within the correct part of the "Resort Corridor," the Owner is being smart in their pricing.

Most surrounding properties have or will make +$100 Million in EBITDA annually.  Some, will earn +$300 Million.

And, the property is large.  If thinking of going bigger, it could hold +/-10,000 rooms in hotel Towers that could reach +/-500', it is also large enough to include a Mall, and has enough frontage along the "Strip" for profitable restaurants or retail shops.

Also, the Owner is willing to compensate me for bringing a Buyer.

If you think this fits your acquisition criteria, then click on the Las Vegas Casino Information button located in the right hand column; Print the Non-Circumvent Form; Have your President or CEO fill it out completely (authorized signatory's only); and scan and email it back to me.  This is necessary so that I know that everyone stays honest with each other.

And on it, I ask that the Buyer pay me 1%.  That is there only if the property in question doesn't actually fit, I can, without hesitation, find you another property?

Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes

On the Horizon...

Donald Trump, for some strange reason, is winning over (let's call them) normal every day Old White Americans.

I truly don't understand what they are so afraid of.

Donald Trump is fear mongering.  He is playing to the lowest common denominator in this GOP primary season.

With that said, I received an email from my Middle Eastern client which in essence said: Until Donald Trump is out of the presidential race, middle eastern money stays out of the US.

Here is what he sent me:

"... with all the madness and shocking popularity of Trump!!! Which foreign investors specially Middle East take it very seriously not only because of its extreme hatred for all non Americans!! But also because it reflects a lot Americans same feelings and it sheds very bad and instability. On the Horizon."

I don't know if Trump realizes how much his words are hurting American Business.  I don't think he cares about Americans as he implies.

One minority client said to me he thinks Donald Trump is filming a reality TV show and went on this run for president as part of this TV show.  The problem is: he expected to be out of the race by now but he is winning with words and phrases that would have cost other politicians their elected positions.

I do NOT know if this is true.  But, I am NOT voting for Trump in the General election if he wins the GOP nomination.  In my opinion, there is no room at the highest elected office in the world for some one with so much fear and hatred in his heart.

Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes

There is One +/-8% Cap Rate Property Currently in Las Vegas!

That's correct.

And, the first person to make an acceptable offer, could be the new owner of this freestanding NNN Leased Property!

This is NOT a teaser.  There is ONE CRE property currently in Las Vegas that can be acquired for an +/-8% Cap Rate.  And, there are +/- a dozen or so National Credit Tenants in the immediate area around it.  And, the street traffic is +/-71,000 per day!

If you acquire this now, you will earn the +/-$151,200 in current annual rental income!  AND, in August, 2016, the annual rent increases to $166,320!  This is absolutely, the best type of retirement income you could ever ask for!

And the tenant pays all the cost and expenses on this property!  And there is still ten years remaining on their lease; and they have Two Five Year options where the annual rent can reach +/-$220,000!

Want to know more?

Contact David Howes -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88
AND you can Follow David on Twitter: @DavidAHowes

Compliments will NOT pay the bills!

A while back, I was dealing with a "Supposed" client who was going to acquire a variety of CRE properties in Las Vegas.

At one point he asked me to find him +/-500 unsold homes so he could fix and flip.  He was very complimentary and by the sound of his voice, he was confident I could get the job done.

I did ask for his proof of funds -- which he said he had but would send them once an offer was written,

Anyway, I like so many others before me, I fell under his complimentary spell.

He did bring his "guys" with him to Las Vegas to look at various properties; and, we met with one Owner, who was very complimentary right back at him.

Later, after the "supposed" client was on his way back home to re-think his purchases, the Owner asked me to meet with him.  He wanted to buy me a cup of coffee.

The Owner and I met.  The Owner said, "David, that guy ain't no buyer.  He's wasting your time."

Apparently, the Owner has been through these scenarios before and wanted to forewarn me what was going to (and actually did) happen.

A few days later, the "supposed" client called to ask me to write an offer for the "wonderful" Owner who agreed to meet with them.

The "supposed" client wanted to offer the Owner a way out of his property buy putting together a joint venture and let the "supposed" client manage the business located at the property.  The "supposed" client would increase the sales and profitability of the business at the property, thus increasing the sales price of the property once it sold -- which they'd split.

I had to tell the "supposed" client no deal.  The Owner had warned me that, that was what he was going to do.  I didn't tell him this of course, but he said it would be very profitable for me to accept stock in this venture and I would be benefiting greatly from his tenure as managing owner.

I told him, the same thing the Owner said to me: Compliments don't pay the bills!

Anyway, he has since been less complimentary as far as I can tell, because he has moved on to other brokers -- to waste their time.

So, if you are serious about acquiring a lease investment -- and have proof of cash, there are a few really good deals left in Las Vegas you should be considering.  Call me.

Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes

Icahn lists Fontainebleau for $650 Million

At lunch today with a gaming executive, we started talking about the announcement of Icahn listing the Fontainebleau for sale.  The rumored asking price is $650 Million.

"That's too much," said the gaming executive.
He continued, "the gaming industry has changed in the last 10 years. You used to be able to buy a $300 Million property and that resort would turn a profit in a year or so, but not anymore.  The casino industry is in trouble with so many local casinos going in, in other states.  Nowadays, forget it! Spending a billion eliminates any possibility at making any money."

He also added, "Look at Caesar's.  They let their CEO acquire so much debt, that even in bankruptcy, they are going to get the short end of the deal."

He asked, "...and how much is it going to cost to finish it (the Fontainebleau)? At 50% completed (more accurate than what is being published) the new owner is going to be into a property that is not well located on the "Strip" for about $2 Billion.  And, they are going to need a lot more foot traffic in that area before they turn a profit."

I had told him that I written an offer about two years ago for $450 Million and Icahn turned it down.  He said, "That is more realistic but still too much," in his opinion.

All I can say now, is: Best of luck to whoever buys this for $650 Million.  Whatever sucker pays that much will be going the way of other Las Vegas resorts in the short term.

Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes

"What other people think of me is none of my business." - Dr. Wayne Dyer

Recently, I have had real estate people criticize me in forums and through other people because of my opinion; or, because I am so open and honest in ALL CRE transactions that I am involved in.

It's the reason WHY I have only been to one deposition in 24 years which was for a real estate transaction that was going sideways at that time.

Anyway, the full quote is: "What other people think of me is none of my business. One of the highest places you can get to is being independent of the good opinions of other people." - Dr. Wayne Dyer

And, because some of these people have said things to other people I know -- I am sure most were trying to be positive and helpful -- that I have to emphasize that I truly do NOT care what you think about me.  Of course, I am referring to other real estate brokers, agents and affiliates or such that have formed an opinion about me through the years.

So, I am going to just say: I do what I have to do to get a CRE transaction done in the correct and most honest manner.  If that bothers some of you people, that's fine.  You can just stop being critical of me because I don't care whether you like me of not.

And, I know who you are.

I saw a saying a few days ago that went something like: 'I have been making changes in my life.  If you haven't heard from me in a while, you are one of the changes I made.'

Hopefully, clients fully understood that there are some idiot agents here in Las Vegas that don't want to do any CRE transactions with me.  That's fine.  That speaks volumes about me.  And, it tells me, that these agents are lazy, sleazy or just want to make a quick buck.  It is also because I have always insisted that they do their job.

Like I said in the previous post, I do work well with others.  I do work hard.  And, if you think I need training, or, you don't like opinion of a property value you placed on a property, go suck an egg.  You are in my way and I am going to help my client get the fairest deal they can.

Working with David Howes is easy! Just contact him -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND be sure to Follow David on Twitter: @DavidAHowes

Another national real estate firm "Broker" gets Called on the Carpet!

I love working Commercial Real Estate!  I must because of the nature of the business.

You see, recently, I had to call another 'Agent' on the carpet.  I did so because this agent -- who works for a national real estate firm, doesn't return other "Broker" up calls -- then when you do get a hold of them: They Lie!

This particular salesperson/agent -- who refers to them self as a broker (Not licensed as a broker.) -- doesn't want to work with others because of the severe commission split within their own office.  (I have blogged about this before.)

Anyway, I do try my best to work well with others.  I do try my best to do what is best for my client.   I will, also, kill a deal if I find out that my client's interest is suddenly hampered by a just learned about fact about a property being pursued.  (And, I am proud of the fact that I have only been to one deposition in my 24 year career.  And, that was because the Seller lied to me during the listing presentation.)

Anyway, here's the key to NOT experiencing my wrath: Don't lie to me!  If something is wrong with a property: Tell me!  I can help get a Close IF I know property problems well in advance.

And, if you refuse to take my call; or refuse to reply to my emails; step aside and get out of my way! In this business, delivering bad news is part of the job. So, get used to it.

Everyone hates losing listings, losing sales, and even losing clients.  It comes with the territory.

Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes

Update on Las Vegas Resorts! Wrote an Offer for a Strip Resort Corridor Property!

For those interested in pursuing a Las Vegas Resort, Hospitality, Gaming or Restaurant Property, you will want to continue reading.

This past Friday, (October 14, 2016) I submitted a Purchase and Sale Agreement to a Buyer for a Las Vegas Resort Property.

Now, I want to be careful because I don't want to give anything away.

But, if a 'major' Las Vegas Resort is within your acquisition criteria, click on the Las Vegas Casino Information button in the right hand column.

There you will find the Non-Circumvent, Confidentiality and Commission Agreement.  Please print this form, fill out completely, have your company's signatory sign, then scan and email the signed form back to me for further details on properties that are available.

You will also have to send me your complete contact information so I can better get a hold of who you are, your company's acquisition ability and to be able to discuss the property details with you.   Just so you know, there are several layers of gaming type licenses in and around Las Vegas -- and the entire state of Nevada.

So, contact me directly, and I will be able to start a dialog with you about the various properties that i will send to you so you can read the details firsthand to better judge for yourself the extent of your interest in acquiring Las Vegas Gaming properties. If what I send you is of no interest, just simply delete and wait for the next.

Hopefully, the above mentioned PSA will be quickly signed by the Buyer; then executed by the Seller.  Once this phase is complete, we open escrow.

I appreciate your patience in this and hope to be able to bring you other Las Vegas Properties to you for your review in the next few months.

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR 702-501-9388!

Las Vegas Commercial Real Estate Resort Investment Property Do's and Don'ts!

For some reason, quite a few "investors" ask me about financials for certain 'well located' Resort, Hotel, Motel and Gaming Properties.

Looking at and analyzing the financial statement would be the normal way of processing whether or not a 'well located' property is worth a specific sales price.

However, these well located properties suffer from the fact the Owners do know all about the situation of the prominent location of these properties.  Since most of the 'Buyers' are unaware, it is important to know -- before even asking -- that the most important features of these properties are: the H-1 zoning, the fact that they lie within the Clark County Gaming Overlay; and that there is a future upside IF certain elements of the surrounding properties do ever evolve into a massive development.   So, what is the current owner to do?  Well, that answer is easy: they hold out for their price.

Unfortunately, these well intended Buyers come along and 'think' they are smarter than the Sellers; and they try in vain to overtly explain why the property isn't worth, for example, $10 Million an acre.  (This is an approximate measure of value that the land under the resort hotel, motel that Sellers use as a gage to establishing the sales value of a property.)

The problem with this is that there are some Buyers who will -- because of a sense of desire -- overpay for a property -- thus set an unrealistic bar for us Real Estate Brokers.

Yeah!  It is great for our bank accounts.  However, it sends an unrealistic value ripple effect through the neighboring properties.

When this happens, the Owners/Sellers now think that their property is worth that or more simply because their properties are NOT vacant, better maintained, even though NOT as 'well located.'

I don't want anyone to figure out "who" I am talking about.  Let's just say his intention is good; his execution is bad.

So, when I know of a property for sale at $1 Million an acre, lets say, that is the price set by the well intended 'Seller" because of the fact that a similar property down the street sold for close to that amount.

And because of this established price, any financial information I have will NOT reflect the Sellers Selling value adequately.  And, I do know that the financials only show a Cap Rate; and, I feel like an idiot for taking a listing at that high of a price.  But, since the Seller has bought and Sold properties through me over the years, I want to service them as best I can.

You understand, right?

So, out of state Buyers, please pay attention, when you review marketing information I send you, just remember that the financials have played little in establishing the selling price of a Resort Hotel, Motel, and/or Gaming asset -- especially along the "Strip."

So, 'Do' ask me questions about Las Vegas Commercial Real Estate!  I will answer them as honestly and as effectively as I can; but, please 'Don't' come to Las Vegas thinking you are going to acquire a 'well located' property below market value.

There are certain 'things' about Resort properties that I know that make that property worth more than the financials reveal.

Are we on the  same page?

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