Monday, April 30, 2012

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
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: OR 702-501-9388!

Wednesday, April 11, 2012

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 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: OR 702-501-9388