Operating Brothel For Sale!

This morning, I received this via email.

I've never sold a brothel even though they are legal in Nevada.

I just had to blog this so you understand that when it comes to real estate, a business can be included in the sale -- which this business sale includes the real estate!

Operating Brothel - Owner will finance

Located in Northern, NV 

Asking Price:       $2,000,000

Cash Flow:           $245,772

Gross Revenue:             $469,444

EBITDA:                       $245,772

Real Estate:                  $440,000

Business Description

Rare opportunity to purchase a Licensed Brothel. Seller Financing.

One of the last truly cash businesses available. Legal, operating, turn-key Brothel. Management in place and Seller will provide training. Limited competition located at the intersection of 2 major highways. Seller financing to a qualified buyer. Real estate included. Rare opportunity – these licenses rarely transfer to new owners!

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Detailed Information

Inventory:                 Included in asking price

Real Estate:             Owned Included in asking price

Building SF:             6,590

Employees:              4

Facilities:                  6590 square feet, new roof. Real estate assessed at $436,229

Competition:            Very difficult to get into this business. Licenses are limited and none      are available in this area at this time.

Financing:                with $450 K Down

Support & Training:          Seller will train new buyer. Management is also in place

Reason for Selling:            Retiring

If interested in owning/operating a brothel...

To Contact David Howes try: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!

My Internet Subscription Conundrum

It's been about six months now when I first realized that the TV ads promoting certain web sites for real estate are actually killing off the real estate broker business.

Take for example: Realtor.com.

Now, I do not sell houses.  I don't want to.

I sell Commercial Real Estate and it's where I find my solace as a hard working person.

But since those ads have appeared, a light bulb went off in my head that said: "You don't need an agent to buy a home!"

I'm sure you have watched this commercial.  You know the one that has the 'NOT YOU!' tag line.

Realtor.com is saying to a broad customer base that you can find your home on this web site without an agent/broker.

I'm sure Realtor.com didn't realize this when they first thought of the ad.  But I bet they do now.

My problem is that a national commercial property web site has been doing the same thing for years.

I listed several motels in the Las Vegas area and wanted to put them on the web site.
But, I couldn't because I wasn't a premium subscriber.

Huh?

It's three listings!

But out of the three, only one would be available for other subscribers to see -- unless I pay a ransom of $69 extra per month to have the other listings made available for others to see.

AND, if I only want investors to see them, that's an additional cost.

I am calling out "Highway Robbery!"

The marketing person I ended up dealing with tried to say that if I advertised in the classifieds I'd be paying.

Such an ass!

Yes.  Newspaper advertising is expensive and limited.  But, because I am a basic subscriber, I only get limited listing exposure.

And the fact that they hide, hold back or prevent these "Investors" from seeing my listing is unconscionable.

It's the realtor.com scenario all over again.

I told the marketing guy you are killing my business.

Of course, he disagreed.

But, the bottom-line of all of this is GREED.  And, because of this need for Greed, they are killing my business, and every other real estate agent/broker's business as well.

But, since I know more about the Las Vegas market than their web site, you will find out that when you contact me that acquiring that specific commercial investment property will be smoother with my help!

Give me a call to see!

To Contact David Howes try: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!

Could Vacant Malls be Renovated into Schools/Classrooms?

As I await for the continuation of the NFL Playoffs, I was cruising the usual Internet sites and came across an article about Department Store CEOs who are being replaced because of poor retail sales.
(Of course it is exciting to me!)

Anyway, with Amazon and e-bay taking rather large bites from this sector, and the fact that stores and malls are closing left and right, it got me thinking: (I know, not a good sign.) Since most communities still need schools, and most communities can NOT afford to build new schools, why aren't those school districts taking these already built and ready for (their) Tenant Improvement buildings and converting them to schools?

I'm sure that the banks would sell cheaply; or, they would lease to the school district cheaply in exchange for them taking care of the property while the bank tries to figure out what to do with the property next.

It has to be much, much cheaper to place a school into one of these buildings because the big box buildings could be divided into classrooms, auditorium, and gym; they already have the essential elements needed to supply children, teachers and administrators what they need.  Especially the smaller retail stores could be classrooms, etc.

Malls have built in Food Courts, Bathrooms, Hall Ways, Indoor Gathering Areas, Outdoor Gathering Areas, Ample Parking, and ease of access to and from the grounds.

The question I have: Why hasn't anyone else thought of this before?

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

Is the Las Vegas CRE Market Going South?!

Had lunch with the retired gaming executive that I have come to know by living and working here in Las Vegas, NV.

At lunch, he said that he had heard that one of the national real estate firms located in Las Vegas, NV could be closing it's doors before the end of the year.

Now, he did say which one; but, for the sake of NOT spreading rumors -- at least until I can verify this information -- I will just let that simmer.

This information was told to him by an agent he knows that works at that very office.  And, she also said that they have only closed three sales or escrows this year since January, 2016.

And, because they are in the prestigious high end office with their monthly rent so high, the agent told him that she was leaving and was going to get out of the real estate business altogether.

Now, a day later, I attended a mixer that a major national bank held.  When I arrived -- fashionably late -- I saw that there were only maybe three or four CRE agents attending.  The rest were all bank employees from various divisions of the sponsoring bank.

As I was greeted by a bank employee I know, I asked her why the CRE agent/broker attendance was so poor?  She embarrassingly said something to the effect that most of the invitees (real estate agents/brokers) were to busy and didn't RSVP.

Oh, really, was my reply.

I then told her about the major CRE company that I had heard only closed three sales this year.  She replied, that she had heard that, too!

So, I wonder.  If a national real estate company -- given that it is a franchise -- can't close sales and maintain their office; I feel so lucky that I have been able to, that I should travel to Prim and stand in 110 degree heat to buy a lottery ticket.

Then, again, I would probably get mauled by a Polar Bear before acquiring the winning ticket. (That seems to be my luck.)

Anyway, I think I will stick to doing what I am doing, because what I do seems to still be able to put sales deals together and close escrows when needed.

And, if it is true that Las Vegas CRE is about to go south -- again -- then, you need to contact me now, so we can put together a game plan for moving forward once this 'new' recession hits us.

I am ready when you are...

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

Las Vegas: Profitable Nevada Ski Resort For Sale!

Within the past month, I have mentioned that I was trying to list a Nevada Ski Resort.
Well, the attorney for the owner wants to handle the sale, so I will let him.

This Ski Resort is NOT in the Las Vegas area!  However, it is within the state boundaries of Nevada and is one of the state's oldest and well run Ski Resorts!

I won't tell you much about it here but if you are interested and qualified, send me an email and I will reply with an Non Disclosure Agreement (NDA) -- so that no one will go around me on this.

The attorney handling this has set up a Data Room where all the property details are located.  To access the Data Room, you need to email the signed NDA back to me.

If you want to see the Ski Resorts' financials, you will have to prove to me and the attorney you are capable of closing a sale in the $65 Million range.  So, please include your financial capacity with your company signatory signed NDA to proceed.

Want further information?  That will take you sending me an email.

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

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!