Tuesday, November 26, 2013

Your Buyer is Not Qualified Because We can't find Him in a Google Search!

A few days ago, maybe even late last week, I get a call from a LA Collier's agent who for some reason has a listing on an Las Vegas property telling me his Seller needs a warm and fuzzy feeling about my Buyer.

At first I laughed quietly to myself.  Then, he dropped a bomb shell saying that since he can NOT find my client via a Google search, he thinks he is NOT qualified to buy the property!

What stupidity!  I know at least a dozen people in Las Vegas, that you would be hard pressed to know whether they are qualified or not simply because of their appearance.  Most of these people are older.  They do NOT have an internet footprint.  And, just by looking at them, you would never be able to tell they were wealthy.  AND, they like it that way.

One which doesn't even have an email account owns 40 properties where he earns +/-$100,000 per month!
Every time I have to get a document to him, he tells me to fax it!  I don't have a fax.  It's passe. And, his daughter is studying Computer science at a well-known Southern California University.  She told me that she has tried to get him to use an email account in the past and he refuses to change the way he does business.

Another former client used to have a contract with the Clark County school system to supply food to them. He has an email.  BUT, he never checks it.  I have to call to tell him that I sent him the information he requested from me.  Once he does check the email, he is okay.

Anyway, NOT every property owner is on LinkedIn.  Not every Buyer has an email account.  Does that mean they aren't qualified to buy?

No!  And unfortunately, I sent this LA agent my clients financial information of the money he has on account in his financial statements.  The client asked for a loan contingency because he doesn't want to put all or even most of his money into one property -- which is smart since the property he made the offer on has a higher than normal rent payment by a national credit tenant.

So.  Why the defiance to my buyer?  I truly don't know the reason.  However, my guess is that since the local Colliers office has a reputation of double-ending deals, that this might be what they are trying to do. However, I do NOT know this for a fact.

In the past, I have gotten other clients from a national CRE company simply because the client asked the agents to find out IF a property on a specific corner -- whether listed or not  -- would sell.
He told me that the agents said that they do not do that.

Which is good for me since, that is one of the "things" I do.  If I know of a potential client "looking" for a specific property, I will try my best to get a hold of the owners and just simply ask a question.

(By the way, my buyer client told me to tell those agents, IF the Seller wants a warm and fuzzy feeling, he should accept his offer and he will get that feeling at the close of escrow. OR, go buy him a blanket.)

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

Wednesday, November 20, 2013

RE Expert Suggests Buy and Hold Strategy is the Best Way Real Estate Investors Can Make Money!!

Surprised?  I'm not.

Just in case this was NOT news for everyone in the good ole US of A!

Buying real estate and holding it long term has always been the best way to get the best return on your real estate investment.

Now, this may NOT work as well for single family homes and condos.  BUT, in the CRE world, the best return has always been over the long haul.  Buy now; and Sell years from now when the investment has run its course.

When 2/3's of the billionaires in the US can attribute their wealth to real estate, it should NOT make anyone say: Golly, gee wiz!

If you start small and work your way up, one house at a time, or one small real estate investment at a time, over time, the return on the real estate will eventually pay off.

And, for you who are new to my blog, buying Las Vegas real estate does have a long term value increase preset before the 2008 economic disaster.

Most people who had acquired their Las Vegas properties a long time ago, did NOT lose their property because they had so much invested in keeping the property up to date and they did NOT over-encumbered it by a high LTV loan.  Never pay off credit card bills with your real estate equity.  I think it is dumb.

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

Wednesday, November 6, 2013

Las Vegas Value Added Retail Center Just Listed For Sale!

Attention! Investors!

A long time client of mine asked me IF I would sell his Neighborhood Retail Center that he owns in Henderson. I have introduced him to an attorney friend of mine to help him with a SHORT SALE! He wants to sell to be able to get out from under this debt property.

Now, this retail center is in a neighborhood where the City of Henderson has set aside about $1 Billion to help upstart and/or new businesses who will lease in this area.

The upside for the risk taking real estate investor, will be that once this is fully leased up, the Cap Rate could be as high as 13%.

The property has +/-12,700 SF in two two buildings on one 1.53 acre parcel of land. It is currently +/-60% Occupied! With Total Rent being collected at +/-$8,500 that puts the average PSF monthly rent at +/-$0.70's!

This rent number should be higher -- more like $1.00 PSF per month! And, there is room to improve on that with the way the economy in Las Vegas seems to be slowly improving. The other thing is, with the existing leases in their 2nd or 3rd years, rent renewals are going to improve the bottom line as this property rolls along into the future.

The main tenant is the Coin Operated Laundry and a local Mini Mart that competes with the 7-Eleven on the corner.

The Retail Center was built in 2007 and still looks (almost) brand new! The selling price could be as low as $1.2 Million.

There is money to be made but that is the future leasing capacity from the vacant +/-3,000 SF.

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