Saturday, August 3, 2013

"Clients who continually question the minor Purchase Agreement items are NOT Buyers!" Mike Sitren.

I miss Mike Sitren.

He was the best RE Broker I ever worked for.

Way back in 1991, when I left Retail Management for Real Estate, Mike Sitren took me under his wing and taught me a lot about real estate.

He was a short, stocky man who had been in California real estate for more than 40 years when he died in 1993.

In those two short years, he gave me more information about real estate client particulars than I have learned in the last 18 years all together.

He would say things like: A Buyer who demands an unattainable interest rate, is NOT a buyer.  Don't waste your time with them.

He admonished me for trying to help my wife's sister and her husband with a re-finance loan years ago.  He said never do anything in real estate for family; they will not appreciate it; and, IF something goes wrong, YOU are to blame.

I, unfortunately, made this mistake one other time.  It was THEN that I learned that Mike was correct.  (I don't speak to my brother anymore.)

Even as of today, when "things" happen during a real estate transaction, I remember his words of wisdom of what he taught me.

Recently, a client from New York wanted to "buy" a lease. That's what he said.
I asked: "Do you mean buying a property with a NNN leasehold encumbering it? Or, do you want to buy a leased that is a ground lease and you pay the fee simple owner a rent.

"No!" he said.  He wants to buy a property where the tenants pay ALL the expenses.  So, you want to buy a real estate property that is encumbered by a NNN Lease where the tenants pay ALL the RE taxes, insurance and CAM.  He said that's right.  I said, Okay!

So, I found him one. Then, as we are writing a Purchase Agreement, he starts demanding that in the offer, we outline the provisions of the lease that he is buying.  (What?)  In Nevada, they will give you basics about the lease, but NOT the whole lease prior to the Buyer supplying the Seller they are qualified to buy.

Well, he didn't want to put up an agreement or even provide the Seller with a financial statement he said has the appropriate amount of money to close the deal until he got to look at the lease.

I finally realized late today, that this New York Buyer didn't have a clue as to how or what he was trying to do.  He kept asking for things that would NOT be available until we were in escrow.  Mike said that buyers like this guy, are never a real buyers.  So, don't waste your time.

And, unfortunately, the more I tried to help him understand this process, the more he began to question other minor and basic purchase agreement items.

That's when I remembered Mike's warning.  Any buyer who continues to question minor items in a contract, is NOT a real buyer.

So, IF you are a real buyer, I have several properties that are worth the price because they are in the 8% Cap Rate range.  However, after this one, sending me your qualifying information is required -- up front.

And, IF you have been following my blog, you would know that an 8% Cap Rate for a property these days, IS a Steal.

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR call 70 2-50 1- 93 88

Thursday, August 1, 2013

+/-8% Cap Rate in Las Vegas Commercial Real Estate

A fellow RE Broker/Developer here in Las Vegas wants to sell a property he developed a few years back. He wants to cash out so he can use the money to complete another property he is working on.

So, this is for Principals Only!

A small retail center on a Section Line street corner is available for sale at $3.9 Million. He is asking an 8% Cap Rate -- which every investor knows is a great steal currently.

So, Principals, send me an email and I will forward the details to you.

The tease about the property is that it is +/-13,000 SF with a national credit tenant on a corporate lease as the anchor. There is also a regional gaming operator on a leasehold here, too. There is also a 4,500 SF portion that is currently being brought to a vanilla shell which is the value added part of this property.

So, IF interested for more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR call 70 25 01 93 88.

This is NOT going to last long at all!

Wednesday, July 17, 2013

Client wants my help to Sell his Cabin Retreat Home above Las Vegas!

I must be doing something correct.

I do NOT Sell SFR's or Condos because in reality I do NOT have the patience.

And, even though I tried to sell a home a few years ago to another client, I do NOT have the correct subscriptions NOR the desired elements such as being a member of the local Realtor club!  (It's too expensive for my tastes!)

So, when a client of mine called me yesterday, I was expecting to be able to help him with one of his CRE buildings.

But, he cut me to the quick right from my Hello..! and straight out asked me for my help to sell his cabin home.

I reminded him that residential is NOT in my area of expertise. I reminded him that I was NOT a member of the MLS; nor, was I a Realtor.

His response startled me -- just for a second though.

He said he wanted me to try because I was the only broker he knew who has consistently shown to him that I don't quit!

Huh? I thought to myself. Sure, I advertise and market property to the masses. I work with a variety of people on different financial qualification levels. And, I always give my best effort even though there seems to be dire circumstances.

Oh! I guess that is what he is talking about.

He explained that his property was listed with a residential agent (who is very good at selling high priced homes). He was frustrated that the agent had taken the listing and during that listing time period, he felt, they had done very little in effort to sell the property.

(Now, I do NOT know anything about the agent's marketing or what they actually did to expose the cabin  home to the masses.)

Anyway, it will take me about a week or so to get everything in order since -- like I said above -- he cut me to the quick. But, check back in two weeks. By then, I should have everything together.

In the meantime, IF you are interested in the property: the cabin home is +/-5,600 SF, has 3 bedrooms and 2.5 baths, a four car garage, a +/-2,500 SF patio area and sits on +/-9 Acres of land. (It has enough land that you could even put in a heliport IF you want.

Lastly, the Client said he believes that this residential property is the highest freestanding house in all of Nevada elevation wise at +/-9,125 feet. AND, it has views of the City of Las Vegas AND Lake Mead!

The downside: it is about an hours drive up the Mountain from Las Vegas. And, the average temperature up there is about 30 degrees lower than in the Las Vegas Valley. So, IF the Las Vegas heat gets to you, a nice helicopter ride or an hour drive gets you to a place full of serenity, quiet and peace of mind.

The Client emailed me pictures of the property. So, IF this interests you, send me an email an I can reply with the pictures.

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR call 70 25 01 93 88