Friday, May 31, 2013

Celebrities-Athletes Lose Earned Income from Schemes!

Earlier today, I was perusing a Gossip Web Site when I came across an item about a Hollywood Starlet who is (rumored) to be on the verge of having no money left because of bad investments and financial advice. Apparently, she and her husband were more anxious about get rich quick schemes than long term income investment property.

Here is the quote that made me think: "I should Blog this item:"

"But let's be honest here - sometimes the true winners are those who get OUT of Hollywood and earn their livings in other ways. One of the worst investments that athletes and stars fall for are restaurants and clubs. The money sharks run through your credit line with fake purchases for the business, then the restaurant closes, they have the celebrity's money and the celebrity has nothing to show for it."

Okay.  I live and work in Las Vegas. Many, many Athletes and Stars over the years have put money into these clubs and restaurants and they have been like a "flash in the pan." They lost it all.

And, the one common denominator is WHERE these clubs and restaurants WERE to be located: On the "Strip!"  And, what type of properties are located on this stretch of roadway: HIGH DOLLAR RENT Resort Casinos! Even us common people know that the "Strip" is packed with over priced properties when it comes to leasing.

Now, even though they think the club or restaurant business sounds like a well organized business plan, IF your monthly rent is too high, and the club and restaurant income is too low, you will lose everything in the process.  And, you will realize that: Too Late!

For years -- it seems like -- I have been marketing to Athletes and Stars that a National Credit Drug Store, or a National Credit Fast Food Restaurant, or even a smaller well located office or retail center in a well located commercial real estate corridor, are much better investments than the clubs or restaurants! Sure they are more conservative; and, they do NOT carry that initial flash that a Resort Casino would attract when announcing the Grand Opening!

But, IF the Athlete or Star had called me during their review process of that business plan; and they were to compare products and their history on whether or NOT to invest in a leasehold business at a High Dollar property; or a long term CRE investment where a National Credit Tenant pays YOU a monthly rent for ten to twenty years, it would have been obvious to them, that my advise would have made them money.  In those club and restaurant schemes, only one person makes money: The Landlord!

So why be a Tenant? When you can be the Landlord.

However, since Athletes and Celebrities do not have $500 Million plus, acquiring a Resort Casino to become that club or restaurant Landlord is out of their reach.

So, IF you Athletes and Celebrities really and truly want to earn long term income. AND, you understand that making money is a long term investment and NOT a flashy scheme, you need to acquire a CRE property that has a high income potential! And to start in that direction, all you have to do is: CALL ME!

There are several well placed CRE Properties in and around Las Vegas (some will require some property management) but if bought correctly, you will earn a respectable income. Unfortunately, acquiring these will NOT have the splash that accommodates most celebrity endorsed investments at Resorts.

Lastly, I seem to have grown to recognize just about when an Athlete or Celebrity is about to lose their hard earned money investing in Las Vegas!
It's when I see them on the red carpet getting their picture taken for an event at a Resort that they have invested in! (sic)

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

Sunday, May 26, 2013

Are All Las Vegas Commercial Real Estate Deals Gone?!

For those of you who have been subjected to my blog rants, here is the latest one!

For the last 3 to 4 years, I have been proclaiming that real estate investors should be calling me to get some of the best commercial real estate (CRE) deals in Las Vegas while they were deals!.

Unfortunately, the mainstream media has had your ear, and you have by-passed my proclamation in favor of the slanted media story line that Las Vegas was NOT the place to be investing.

Well, IF you listened to the media, you have missed the bottom. Las Vegas is on the road to recovery. And that -- my gullible friends -- means Las Vegas may still have deals in CRE, but you would now be obtaining property at the flipped prices.

For example: ALL of the PT Pub's I once proclaimed as 'steals' at a +/-8.5% Cap Rate are now priced at a higher +/-7% Cap Rate or lower.

Another example is the +/-7.5% Walgreen's prices that are now available For Sale at a +/-6% Cap Rate.

Do you see the picture? You are now looking at acquiring these good long term investments at a higher buying price. Thus, because you waited or were NOT privy to my proclamations, you are now losing a percentage of that return over the long-term than you would have IF you bought when I first said to -- say sometime in the last year or more.

So, are there still deals to be acquired in Las Vegas CRE? Of course. But, these deals will be more expensive and will need more TLC than you may have probably wanted to give them in the first place.

Is Las Vegas still the place to invest? Certainly. Aside from Downtown where the Re-development Project is supposed to happen, there are many parts that make up the Las Vegas CRE picture. There are properties that could be bought relatively cheaply and you will still make money long term.

So, will these same CRE properties be the steal they once were? I can NOT honestly say, "No!' Because, there will still be good solid CRE investments IF you call me now and buy them correctly.

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

Wednesday, May 8, 2013

5 Downtown Las Vegas Properties in Path of Zappos Leader's Re-Development

This is unusual for me.  I mostly fight OFF Flippers because they are just trying to take advantage of an unaware Seller. Buy their property as low as they can; then, Flip to an unaware Buyer for as much as you can.

But, in this case, all the Sellers know full well what they're property is worth. And, I have the amounts they are willing to accept in exchange for selling their properties to you. Then, you can re-sell these very same properties. And, there is truly only one buyer.

Just so you know, all of the properties are currently in the path of the Tony Hsieh led re-development project.

Three of these properties are currently surrounded by property owned by Tony's holding company; one is adjacent to a large apartment property they just recently acquired; and the fifth is in their re-development path -- according to Tony's brother.

If you are unaware, Tony Hsieh, CEO of Zappos, has acquired the former Las Vegas City Hall.  He intends to place his HQ here. His crew is actively acquiring property just to the east of this building and he is assembling parcels so that he can re-develop them into a downtown neighborhood style 'village' area for his employees to live and work.

He has also acquired a couple of office buildings so he can lease to technology based start-ups. These very same people will, also, need a close place to lay their heads down at night.

So, IF you want to see what I am talking about, email me and I will send you the property information.

How much could you make? That depends on you. Could you make $1 Million for holding property for a few months to a year? Nobody knows. But he will need these properties sometime in the future.

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

Wednesday, May 1, 2013

Tech Stock Investing verse CRE Investing

In the 1970's, I spent a few summers with my grandfather when he needed help working his cranberry bog on Cape Cod. One hot summer day, I noticed he kept looking at the homes being built on a side of Scargo Hill just above Scargo Lake. I wondered what he was looking at and asked.

He replied with a dissatisfied, "I Sold too soon."
Being 16 at the time, I did NOT understand.
He continued, saying, "I used to own that land.  But, I sold too soon.  I should have waited for the developers."

Then, in the 1980's, I moved to Los Angeles and worked in TV and Film production. I remember that the must have investment during this time were the upstart computer companies. They were all the rage. I watched as several of those companies did mange to survive and thrive and grow into the biggest companies in the world. But I also noticed that dozens -- maybe as many as hundreds of these start ups fell into bankruptcy, losing their investors millions of dollars.

During this time, I had bought several residential properties that I would "fix up" and then would in turn 'flip' the property at a profit making an okay amount of money. Then, I'd do it again.

Then, when I moved to Las Vegas in the 1990's, internet companies were all the rage. Again, I watched as several of those companies did manage to grow and become computer internet search industry leaders.  Then, again, there were dozens -- maybe as many as hundreds of these start ups that fell into bankruptcy losing their investors millions of dollars.

But, during the early 2000's, tech stocks still came and went with little fanfare. There was a war against terrorism and the housing market was growing rapidly. And, Las Vegas real estate caught on fire.

However, I stayed away from the Las Vegas real estate growing market because I felt that something was wrong.  Call it a gut feeling.  But, when several of my fellow RE Brokers were excited about the 100% financing on "stated income" loans that Wall Street couldn't get enough of as can't lose propositions, I felt I had made the wrong decision to stay out.

But soon the market changed.  Buyers were no longer qualified to acquire the over priced properties.  And, as time ticked into the future, these very same brokers that were buying real estate; trying to lease up, fix, and flip them at a higher than normal return were going broke.

You see, I felt that it was impossible for a normal 3% ROI in real estate -- that we had for 40 to 50 years -- to suddenly blossomed to 20% ROI in the course of a few years. Of course, some of these investors did make money. But most -- dozens that I can think of out of the maybe tens of thousands that tried to ride this false economic wave -- went flat broke in 2008 when the stock market collapsed. Some of these RE Brokers are no longer in the business.

The rest of us survivors, who were more cautious with our investing, are still here working diligently.

Sure, tech stocks can make you a lot of money.  But, as I learned from my grandfather, real estate is where the smart money is.  And, the real wealthy real estate investors are buying up net leased properties right here in Las Vegas because they know that investing in real estate has a certain element to it known as equity that will out last any stock -- especially since stocks are more vulnerable to losing your hard earned money.

IF a real estate property is acquired correctly, that property should make a lot of money over the years with the consistent rental income.

True, a market crash affects everything. But, even during a crash, the correctly bought rental property income still gets paid. And, you as the property owner, still has income being deposited into your bank account.  It is income that should stay steady even during trying times.

Unfortunately, Tech Stocks don't pay a regular monthly income. You buy it for the proposed dividends and promised stock value increase. AND, you ONLY get this IF the company becomes profitable and the stock increases in value. And, if the value of the company goes down, so does the stock value. And then, where is your dividend? It certainly is NOT paying you a regular monthly income. So, recouping your initial investment is like a tech stock, virtually gone.

And what would you rather have? A valueless busted stock? Or real estate that you "own" and control.  AND, it should over time accumulate equity -- in a normal fashion.

CRE is like a destiny. Its overall value might lower during bad economic times, but YOU STILL OWN IT. It will still be worth something as we move into the future.

And, just like my grandfather had surmised forty years ago, while you wait for the developers, you continue to earn equity.

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