Wednesday, December 31, 2014

Small Casinos for Sale in Las Vegas!

When some of you search for a Las Vegas Casino, you have come upon my web site. What a lot of you don't know about casinos is that you as a principal must be qualified by the Nevada Gaming Control Board to even own a Nevada gaming property.

And, this concerns me when I see that my web site has been popping up on searches for 'Small Casinos For Sale in Las Vegas,' because, most of you potential gaming property owners will NOT qualify to even own a casino property here in Nevada.

Now, there are a variety of small restaurants, bars, taverns, sports bars in and around the Las Vegas Valley -- all with gaming -- that are for sale. However, there is only one actual small "casino" that I know of that is truly For Sale in Las Vegas.

As most of you are aware of, the true "casino" properties are on the "Strip" and in Downtown Las Vegas.  There are several "local" casinos in outlying neighborhoods, but these are owned and controlled by large local casino companies. And the small local casinos -- not on the "Strip" -- will still advertise themselves as a casino because they do have slot machines. And, they will call themselves casinos when in actuality, they are legally known as "taverns."  These only have "restricted gaming licenses."

However, I do know of a local "grandfathered casino" property that has an "unrestricted gaming license" where the owner will sell, but his sell price is $5 Million!  It is a +/-5,000 SF building, on a +/-1.35 acre lot.  It is just off a major freeway and located on a high traffic street. It is surrounded by national credit tenants, multiple roof tops and Class A type Office buildings.

So, there is everything about this property that needs to be disclosed.  Any further information requires a Non-Cir Agreement which is located under the Las Vegas Casino Information Button on the right side of this page.

And, the price is the price. According to the owner the price is: "Not Negotiable!"
And, whether you agree or not, you must disclose your financial capability to even receive the property's financials.  And, the owner says: His business' financials are what they are and he will NOT argue that the property is worth less than his Selling Price. OR, whether or not the appraisal MAY or MAY NOT justify the selling price.  The price is the price.

WHY? (you may ask.) It is because this location has the "Grandfathered Unrestricted Gaming License." Which means to the untrained eye, that you can have table games (blackjack, roulette, craps, poker) and the local government body is no longer giving "unrestricted gaming licenses" out any more; AND, any alteration to the existing property will require upgrading to the "new" codes. Thus, elimination of the "grandfathered licensing status forever.

So,...want more information? As i mentioned above, click on the Las Vegas Casino Information button, print out the Non Circumvent Agreement, sign and email it back to me. Then, I will send you the property information.

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

Wednesday, December 10, 2014

"If you want to make Money in Las Vegas, Stay Out of the Casinos!"

And he is correct.

Years ago, when I first moved to Las Vegas, a met with a broker who owned a local real estate firm. It was NOT affiliated with any national chains or franchises.  It was strictly a local company.

As we talked and I was trying to make up my mind about where to hang my Nevada Real Estate broker's license, we were discussing the topic on visiting the casinos. During the discussion, he brought up the fact that too many real estate agents would cash their commission checks at the casinos and walk away from their adventurous gambling spree broke once again.

And, to emphasize his point, he wrote the word casino on a letter size pad.  He then circled it while asking the question: "How do you make money in Las Vegas?"  He paused for a second to let me absorb the effect.  I was stunned and confused.  I was brand new to Las Vegas and the city still had the allure of gambling riches in my mind.  (This is the mind set of the majority of Tourists who visit here.)

I remember starting to mumble something, but he cut me off with the answer: "If you want to make money of Las Vegas, you stay out of the casinos!"*  He then struck a line right through the circle as in the international Do Not Enter Sign!

Point taken.

This is when I first heard the fact that the casinos are NOT built on winner's money.  The only entity that wins is the casino owner(s).

I have remembered that ever since.  And, because I have that thought deeply in-bedded in my mind, I have learned to ignore the casino allure.

However, there is money to be made in Las Vegas.  It might be a real estate property where you are only earning a 6% Cap Rate, but you are more likely to make money on that, than gambling.

A former casino manager (for 30 years) I have become friends with, attested to the fact that only the casino wins at gambling -- every time.  He told me one time that poker -- as in the World Series of Poker No Limit Texas hold em tournament, is 95% luck.

He said that the most successful poker players are just able to win 51% of the time.  Sure, that one time is a million dollar jackpot.  But, most are behind on their bills most of the time -- he said.

So, are you still thinking of coming to Las Vegas to gamble?  As I have stated above, the best gamble in Las Vegas right now is Commercial Real Estate (CRE).

Sure, the Return on Investment might be marginal as in a low Cap Rate, but IF the tenant is a National Credit Tenant, your winnings will still be greater then at the casino.

*This applies only to those NOT qualified to BUY a casino.  IF you can BUY a casino, then, you would more likely to be dealt the winning hand.

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

Tuesday, December 2, 2014

Happy Holidays! And a Profitable New Year to You!!!!

Happy Holidays! to ALL and let's all have a profitable New Year!

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

Thursday, November 27, 2014

HAPPY THANKSGIVING TO ALL!

I just want to wish ALL my blog followers a Happy Thanksgiving!
It is one of the better American Holidays the entire world can enjoy!

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

Sunday, November 23, 2014

Another Celebrity-Athlete goes bankrupt!

Okay.  This is slightly different than a story of Not investing properly or making bad investments.

This is a direct result of Not realizing that those close to you can make very bad decisions when they have access to or you have given them large sums of money.

Unfortunately for Jack Johnson, his parents were the ones with little or no investment knowledge or sense.  AND, the fact that Jack had a large sum of money and they had access to it and spent foolishly, he now finds himself in bankruptcy.

(Copy and paste in your browser to read.)
http://www.si.com/nhl/2014/11/20/jack-Johnson-bankruptcy-sad-but-common-story-for-athletes

IF Jack had only given them Income instead of access to his money directly, he would be in a better financial position today.

Advice to me years ago, still stands today.  IF you want to do something for your family money wise, then give them income, DO NOT EVER give a Lump Sum and NEVER give them control over your bank accounts.

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

Thursday, November 13, 2014

Commercial Real Estate 101: Net Leased Investment Formula UPDATE!

Every so often, I begin to wonder what else I should post about.  Then, as I run through past postings, I run across a post that in truth could be re-posted without any redundancy.

Anyway, below is a past post that still rings true for today!

Please enjoy!

Have you ever thought that maybe you were all alone in a situation; you definitely needed help; but, you were too timid to ask because you feared you would be embarrassing yourself for NOT knowing simple information?

It's at those moments you need to remind yourself of the old saying: There is never a stupid question! Especially when it comes to Commercial Real Estate (CRE).

So, in order to resolve any anxiety for those new to the CRE world, I present to you (below) information that is absolutely necessary for calculating annual income from a marketed Net Leased Investment Property that you may be considering acquiring for the annual income.

About a year ago, I laid out in this blog about how to calculate net income from a Net Lease.

A lot of you are lay people and this sounds foreign because it is an area of real estate you do NOT usually get into in your daily lives.

Now net income is also known as passive income.  It's the type of income you earn monthly or quarterly as a dividend or investment. The good thing about this is: You only pay a smaller amount in Income Tax on this earned money.  AND, you do NOT pay social security or other IRS types of tax.  ***Please check with you Tax Professional to verify this!!***

So, the main goal of this formula is to allow you as a Buyer (Investor) to predetermine the (estimated) annual net income (the rent you receive) from a Net Leased Property that is being marketed either by a Sales Price or a Cap Rate.

Usually, the marketing entity for the property will only disclose what the Listing or Asking Price is; and they will state that, that List or Asking Price is a certain Percentage of Return on the Investment (ROI); or, as it is better known as: Capitalization Rate (Cap Rate).

Now, from just these two disclosures, you -- as the lay person -- will be able to get an idea of just what the (estimated) annual income should be and whether or not the acquisition of this net leased property will "fit" your investment income needs -- or not.

The formula goes like this:

Sales Price times Cap Rate equals Annual Income.  (SP x CR = AI)

For example: $1,970,000 x 8.79% = $173,163.00+/-.

And once you have the estimated Annual Investment Income from the Asking or Sales Price plus the additional disclosed Cap Rate, you can figure out your Sales Price by dividing the Annual Income by a Cap Rate you desire to acquire the property at; OR by a Sales Price you deem as a fair market value.

You take the Annual Income you figured by the formula, and divide by the Sales Price you feel is a fair price or by the Cap Rate that you want as an ROI. 

Either way, you can figure out from just two disclosed items the third item in such as you can for the Physics Traveling Formula: Rate times Time equals Distance (RxT=D).

So, this is just a basic formula.  The Actual Annual Income should be disclosed in the current owners Financial Statements kept for this particular investment property. AND, during due diligence it is absolutely necessary to review those statements carefully when considering the acquisition of a Net Leased Property.  And, most Sellers will NOT disclose actual financials unless there is an accepted offer and escrow has been opened.

So, hopefully, this will help most of you who are not that experienced in acquiring income producing properties.  And, hopefully, you will be at ease when considering the next step in actually making a purchase move in that direction.

Now, you can take a look at property information in a different light. Get some property information and try the formula out to see if you can calculate an offer price or a price that would enable you to acquire a property at a specific Cap Rate!

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

Saturday, November 1, 2014

Fontainebleau Resort Las Vegas!

About a week ago, I wrote a Purchase and Sales Agreement for the Las Vegas Fontainebleau.

Since last Friday, eight days ago, the company's board has been meeting, to discuss the merits of whether acquiring this property would be beneficial to their company.

Since then, the President/CEO of the company and I have emailed each other with answers to the board members' questions.

Hopefully, I answered their questions which will make them want to proceed with the acquisition.

Now, I am sitting on pins and needles awaiting the board's decision whether they will authorize the president/CEO to submit the offer I wrote for them.

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

Sunday, October 12, 2014

Attention! Athletes & Celebrities! CRE can secure your future, too!

Recently, there was an article about Roger Staubach, Hall of Fame Quarterback who helped the Dallas Cowboys win Super Bowls back in the 1970's!

Now, I do know a little bit about Roger personally. I remember him as a very good Quarterback who made a good living during his Hall of Fame laden career.

And, I knew Roger had invested in Real Estate early in his career and made a name for himself as an outstanding real estate broker. What he is known for today is being a very successful broker who built a company from scratch and sold it for millions a few years back. He did NOT strive for an extravagant, a high flying lifestyle, because he knew that living that way would require him to continue earning a certain level of monthly income that he knew he could NOT maintain.

However, he probably did receive great financial advice early on, which allowed him to maintain his income; or, he refused to believe that his current level of income would ever stay the same. Either way, he set out to secure his future, his future income by acquiring multiple income avenues that were available, and, he planned for the future.

And, with today's athletes and celebrities earning much high incomes then Roger ever did, they will in the short future be completely without any money because of their desire to impress and show off. rather than be impressive with how they are able to handle their current high income.

Now, I must admit that this excessive spending of their income confuses me. And, I am afraid, they don't have the appropriate knowledge or sound advice that would keep their financial portfolio diverse and retain the necessary income that commercial real estate investments will help to keep them solvent into the unknown future.

And, one of those investments -- which I think is one of the best -- is a Net Lease Investment.

With a net leased investment, you will continue to earn income on a monthly basis because as long as you have a National or Regional Credit Tenant, this monthly income will continue and just one net leased property could have paid for a whole lot of things that could extend well into the future.

And, most importantly, these income properties could be used to maintain your monthly expenses -- unless you foolishly buy that overpriced mansion that will suck your money right out of your pockets.

IF you are foolish enough to think that regardless of what might happen to you in the future, you must realize that you will experience time where you could be wiped out immediately from a sports related career ending injury: or even IF you think you would never be involved in a serious life-altering car accident; or that you are immune to a major film or TV flop that you are currently involved with -- think again

Being a celebrity now means you need to securing your future income with a sound Net Leased Commercial Real Estate Investment, is just a simple step away!  Call me to help you earn future income.

Athletic and Hollywood careers have one thing in common: they are DEAD END jobs! Very few are fortune enough to continue to earn the explosive amount of income that is necessary to maintain your lifestyle as you grow older into the future.

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

Thursday, October 2, 2014

Where Tony has failed in Downtown Las Vegas, Developers need to succeed!

I have said several times that a corporate town is doomed for failure.

Unfortunately for Tony Hsieh, it happened sooner than even I expected.  Recent news stories have told the tale of Tony stepping down from the Downtown Redevelopment Project and the subsequent layoffs of about 10% of their staff.

One of the proponents of the project was a former professor who moved to Las Vegas a few years ago to be a part of this development.

Thus, in an open letter to the Las Vegas Weekly, the former professor states that the lack of a plan was the point of undoing to the project's failure.  Apparently, there was no "North Star" to help guide the progress.

Which now is verifying everything I had been hearing about the project.  I have continually stated that more developers were needed to help this project along.  More residential, more office and retail has to go in, in order to bring the correct demographic to Downtown Las Vegas to make this viable.

Since Tony had no direction and the City kept saying to my sources he didn't have a plan, I am NOT surprised at this failure.

IF Tony had brought in developers from the beginning and encouraged their input, things could be different.

With the development of new projects, the city may have had more to Downtown than hotel casinos.  I am talking the return of high paying jobs that are the major component of most "Hub" cities such as Phoenix, Los Angles, San Diego, San Francisco, etc.

Without these high paying jobs, Downtown Project's lack of vision was going to end up a train-wreck -- which is what has happened.

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

Sunday, September 21, 2014

David Howes Sells NW Las Vegas Office Building!

That's right! I closed escrow on a small +/-3,300 SF office building with a non-denominational Christian church as the tenant.

Many potential buyer/clients had asked me to find them a steal, yet only one buyer actually took the plunge and made an offer which was countered and we were in escrow for roughly 30 days.

We closed escrow or on the sale this past week and the Buyer is now the proud owner of a building that will garner enormous equity in the next two to three years. That's my prediction!  He will double his investment by the time the church lease has expired.

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

Tuesday, September 2, 2014

Las Vegas Adult/Topless Club Available For Sale!

The Owner of a well located Adult Cabaret Licensed property in Las Vegas has asked me to find a Buyer for his Club.

The Real Estate and Business is available for the Reduced Price of $10 Million. And, this price is the Sales Price. It is Not Negotiable! No financials will be available to any Buyer who wants to verify the business cash flow; and/or argue that the property is worth less than the asking price. NOR, will the price be adjusted because as a buyer you want an appraisal that MAY or MAY NOT justify the Selling Price. If you want a Fully Licensed  "Adult Cabaret" Club with "Full Alcohol" AND "Restricted Gaming," this is the location regardless of the Selling Price.  The local authorities are NOT giving out any more combination licenses.

The purchase price includes: the +/-2.04 acres surrounding the +/-17,000 SF Free Standing building, a double sided billboard sign, and a small .6 acre+/- leaseable car sales lot (which this small +/-3,200 SF building could be demolished to create additional parking for the club!)

The Topless Club was remodeled a few years ago and has been well maintained. Per code, the Owner updated the club with fire sprinklers, a new sound system and Slot Gaming!

So, as you all know, this is NOT for everyone.

As a specialty use in the Commercial Real Estate (CRE) world, only a few will be able to own and operate a club where women dance in scantily outfits (G-String bottoms only) and men can drink and gamble. Oh! And you can smoke cigars while the Ladies entertain you!

This is the perfect setting for a young man visiting Sin City!

This Adult Topless Club is located in the right location, near the major Resort Hotel Casino Cooridor. It is the very best located Adult Club in Las Vegas and one of the best for Topless Adult Entertainment.

IF Interested but the Real Estate Acquisition Price is a little high for your budget, the Owner would sell the  Business at $1.5 Million and Lease the Real Estate at $25,000 per month on a Five Year Lease.

For more information, Email me your contact information, your financial capability for full disclosure of the property.

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

Sunday, August 24, 2014

Downtown Las Vegas needs more Developers!

What I don't understand is why commercial and residential developers are avoiding Downtown Las Vegas like it is a plague. There are only flippers coming to my listings and telling me how overpriced they are. Then, I find out that these very same "investors" are flipping other under paid for properties to Tony's Downtown Redevelopment Project. It's as if they are stealing the owner's equity right from under their noses.

So, my question is: Why haven't developers been searching for properties in Downtown?

Tony has bought quite a few. And, I have Sold four Downtown properties to Tony. And, I have several more available For Sale but for some reason, Tony has slowed down his buying spree. And since he has slowed down, now is the opportunity for Developers to move in.

And, Yes! Properties will cost slightly more than the Developer would usually pay. BUT, without competition, Tony's (unpublished) plan will fail.

What is needed is: more residential, more restaurants and retail, and store front office.

I have property in all categories. Industrial is NOT zoned for this area.

What is NOT needed is more festivals. There are already enough being held in this area.

So, Developers! Let's get together and figure out what is best to do for ALL concerned. Let's get some major development going and then we can all make money.

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

Monday, August 4, 2014

CRE: Commercial Real Estate 101

One of the "things" about selling Commercial Real Estate (CRE) is that I get to talk to a lot of different people from different walks of life from around the world.

Some of these people come with a lot of baggage; they are wounded internally and sometimes it takes me months before I realize the extent of their troubled life. Others present themselves as if they are an open book. And they talk and talk and usually have very little to say.

But, the client that I like is the one who is more of an explorer. They are on an adventure rather than they just wandered into CRE investing. They know that CRE will payoff in time and they want to start slow and small -- price wise -- which is good most of the time.

They tend to ask for your help as you go along and they fear that they might embarrass themselves for NOT knowing simple information? It's at those moments you need to remind them: There is never a stupid question! Especially when it comes to CRE investing.

So, in order to resolve the anxiety any novice CRE investor may have, I would like to invite you to read the following information that is absolutely necessary for calculating the annual income from a marketed CRE Net Leased Investment Property that you may be considering acquiring for the annual income.

A lot of you are truly lay people. And, whether you are a famous celebrity or you are just exploring this as a novice investor, this might sound foreign to you.  Just rest assured that just because CRE is a new area for you, it still is something you can get involved in -- even if to spruce up your usually normal day.

So, let's begin:

Now net income is also known as passive income. It's the type of income you earn monthly or quarterly as a dividend or investment. The good thing about this is: You pay a smaller amount in Income Tax on this  money. ***Please check with you Tax Professional to verify this!!***

As you will figure out, the main goal of CRE is to allow you as an Investor, to earn a usually stable predetermine (estimated) annual net income (the rent you receive) from a Net Leased Property that is being marketed either by a Sales Price or a Cap Rate.

Usually, the marketing entity for the property will only disclose what the Listing or Asking Price is; and they will state that, that List or Asking Price is at a certain Percentage of Return on the Investment (ROI); or, as it is better known as: Capitalization Rate (Cap Rate).

Now, from just these two disclosures, you will be able to get an idea of just what the (estimated) annual income should be and whether or not the acquisition of this net leased property will "fit" your investment income needs -- or not.

The formula goes like this:

Sales Price times Cap Rate equals Annual Income.  (SP x CR = AI)

For example: $315,000 x 9.5% = $30,000.00+/-. I don't know about you, but I could use an extra $30,000 per year.  This could help pay for a parent's care or supplement a child's college fund.

And once you have the estimated Annual Investment Income from the Asking or Sales Price plus the additional disclosed Cap Rate, you can figure out your Purchase/Sales Price by dividing the Annual Income by a Cap Rate you desire to acquire the property at; OR by a Sales Price you deem as a fair market value.

You take the Annual Income you figured by the formula, and divide by the Sales Price you feel is a fair price or by the Cap Rate that you want as an ROI.

Either way, you can figure out from just two disclosed items the third item in such as you can for the Physics Traveling Formula: Rate times Time equals Distance (RxT=D).

So, this is just a basic formula.  The Actual Annual Income should be disclosed in the current owners Financial Statements kept for this particular investment property.  AND, during due diligence it is absolutely necessary to review those statements carefully when considering the acquisition of a Net Leased Property.  And, most Sellers will NOT disclose actual financials unless there is an accepted offer and escrow has been opened.

So, hopefully, this will help most of you who are not that experienced in acquiring income producing properties.  And, hopefully, you will be at ease when considering the next step in actually making a purchase move in that direction.

Now, take a look at the property information buttons in the right column.  Click on one and try the formula out to see if you can calculate an offer price or acquire the property at a higher Cap Rate!

Contacting David Howes is easy -- either by email: david AT davidhowes DOT net OR call me at: 70 25 01 93 88 AND you can Follow David on Twitter: @DavidAHowes

Saturday, June 28, 2014

Las Vegas Resort Hotel Casinos For Sale II

A couple of years ago, I blogged that there were a few Resort Hotel Casino Properties For Sale. Now, I want to update you on this: There are Three For Sale and they are true Resort Hotel Casino Properties.

So, IF you have the prerequisite amount of money or financial capacity -- which means you are capable of paying $250 Million or more for a Resort Casino Hotel property -- send me an email with the proof of capacity. I will then reply with a Non-Circumvent, Confidentiality and Commission Agreement for your company's Authorized Officer's signature.

Once this Agreement is executed, I will then supply you the detailed information on the Resort Hotel Casino Property that "fits" your financial capacity and investment criteria.

The form can be down loaded from the column in the right under Las Vegas Casino Information.

Contacting David Howes is easy -- You can reach me at: davidATdavidhowesDOTnet OR call me at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes

Tuesday, June 10, 2014

8% or Higher Cap Rates In Las Vegas? Sorry, Cap Rates are actually Going Down!

Last June 2014, I wrote this blog because I was being called by "out of state" investors wanting to acquire Las Vegas CRE at an 8% Cap Rate or better -- as one investor told me.

Well, it's been a year now and the Cap rates have actually 'Gone Down!'

This means, that the prices of CRE in Las Vegas are getting higher -- and other investors are buying these properties.

So, once again, I feel I have to re-address the issue:

For several years months now, I have been working with a couple of Buyers who are still searching the Las Vegas Valley for an 8% Cap Rate.

Unfortunately, for them, they are ALL gone.

The 8% Cap Rates went away about two a years ago when Owners began to realize they were getting multiple offers for their property and/or they no longer "needed" to sell.

But, Not all properties are in such a rosie position.  Several Owners that I know are still struggling to make their loan payments and are still upside down at the end of the month.

But, when you come to Las Vegas expecting a steal, and you find out that a 7.5% Cap Rate is the best you are going to do, then, you shouldn't be wasting my RE Broker's time.

Walgreen's across the US are going for +/-5.5% Cap Rate.  Here in Las Vegas you might be the high bidder at a 6.75% Cap Rate.  But, IF you think an 8% Cap Rate should do, you will be out of luck.  There are no Walgreen's in Las Vegas selling for an 8% Cap Rate.  AND, you are foolish to be thinking that for any property in Las Vegas right now.

IF you are truly interested in acquiring a Las Vegas NNN investment, then contact me and we'll start the search.  But, 7 or 7.5% is going to be the the best sales price.

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

Thursday, June 5, 2014

"There's nothing around it! The tenant is going to fail!"

Sigh!
Two weeks ago, I had a California Buyer who made an offer for a property with a fast food restaurant that was located just off I-215 on Jones Blvd.
It sits in an area between where there are a lot of office warehouse buildings and well built up neighborhood of SFRs.
And, there is a lot of vacant land in this area and most of it is owned by McCarran International Airport.
Now, Jones to and from the I-215 is a very, very busy street as it is the easiest way for workers who live in the neighborhood to the south to travel to work either on the 'Strip,' or to a business that is located near the 'Strip.'
The Buyer and Seller agree on a sales price. We open escrow. Then, -- not more than one hour AFTER opening escrow -- the Buyer calls me to demand I cancel escrow!  What?! Huh?! Ok.
It took me a week, but I finally found out that "a friend" of the Buyer had told him he had "looked" at an aerial map of the area and he determined that there was "nothing around the property but vacant land" so that meant to the friend "that the fast food restaurant was going to fail."
Apparently, this "friend" knows nothing to very little about Las Vegas.  BUT, his influence was great over the Buyer.
Since canceling Escrow, the property -- which had a lot of interest in it has SOLD to a Real Estate Broker, who flipped the property to another California investor.  The Broker acquired the property for $5.3 Million.  And, an hour after he closed escrow buying the property, he closes his second escrow to the investors for $5.8 Million.  Today, as I write this, is a Thursday two weeks before Christmas and I am still baffled that someone with little or no knowledge of a city or town in another state could have so much influence over a Buyer.
Even after I went over all of the "friends" objections with the Buyer, he wasn't going to go against his "friend."
Yes! This is absolutely absurd!
You see, the reason the fast food restaurant was placed there in the first place was because there is a severe lack of fast food in this area.  There are numerous businesses in this area that their employees had to -- and still do -- go OUT of the area to eat lunch, etc.  In other words, there is plenty of "Rooftops" and "Traffic" to support this fast food restaurant.
And, with McCarran International Airport owning most of the land, and with the recent economic meltdown developers have been hesitant to lease the land and build more buildings.  (This will iron out eventually.)
But a national fast food chain will be able to survive here because it is the only fast food in the area.
So, "friends" please keep your big, uneducated opinions to yourself.  Otherwise, you will cost your Buyer friend an opportunity to make money from a well placed National Credit Tenant NNN investment.

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

Saturday, May 31, 2014

Questions surround the future of the Fontainebleau

Questions surround the future of the Fontainebleau

A week or so ago, Paul Joncich, an anchor on Channel 8's NewsNow called to ask if I'd be willing to be interviewed about the (mostly) built Fontainebleau Resort here in Las Vegas, NV.

At first I was hesitant because I truly don't like the way I look or sound on camera.  But, after the wife told me to take my own advice of: "What other people think, is none of my business," I decided to go for it.
Anyway, click the link above for the news story.

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

Saturday, May 10, 2014

Downtown Las Vegas Church to acquire Neighboring Property!

After almost a year of going to and fro, a Downtown Church has agreed to acquire it's neighboring property for $1.9 Million.

This church which sits on the NEC of Ogden and 9th will be increasing it's land footprint from .09 acres to .32 acres.  The neighboring property to the south has a +/-3,600 SF store front office building; and, the adjacent parcel to the west has two store front office buildings of about 1,100 SF.

Since most of the sales activity in this area has been completed by the Downtown Redevelopment Project, the church's impact would be minimal.  However, with the acquisition of these properties, the church will be able to service more of the homeless and indigent populous that are an earmark of this east Las Vegas area.  And, this increase in lot and building size will help the church provided better and more food services for the growing food recipients.

Hopefully, we will be able to close the sale by mid summer.

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

Monday, April 14, 2014

The Seller's Downfall from Selling without a Real Estate Broker!

Just recently, a property owner emailed me to say he had SOLD! his commercial Property and he was proving to me he didn't need a Real Estate Broker.

I had in the past tried to get him to list his property with me. But, he knew better than me about what his property entailed. So, I said okay. But I really wanted to see what would happen.

This is always a bad move on an Owner's part. If you are NOT experienced in Real Estate, you will get taken advantaged of.

Even my own younger brother bragged to me a few years ago about: "How easy it was for him to get his real estate license." I then asked my brother, "So, how much money have you made selling real estate since getting your license?"

His answer: "None." And, it is None because he works as a Pharmacist. Unfortunately, he is just like the rest of Sellers: He truly thinks it would be easy to be his own real estate broker.

So, the owner from the above property who said he didn't need me, was bragging in his email about selling on his own property, said: he Sold for: "$800,000."

I asked: "Why did you sell it for so much less than what this very same buyer had already paid for similar properties in his area?"

He replied: "The Buyer had told him they were never going to pay what I had wanted them to pay" which was $200,000 more than what they paid for his property.

I said: "Of course, they are telling you that now. You accepted less! Of course, they are going to say, they wouldn't pay more than what I had gotten these very same Buyers to pay for other properties that were all around him. But, "You decided you didn't need me!"

He reiterated: "I wasn't needed." and "I was making it a bigger deal than it was." Well, it was a $200,000 bigger deal than he realized.

Anyway, I didn't want to pour lemon juice on his wound. IF he truly thinks he did a better job than me, fine. I will move forward knowing he screwed up big time. AND, he eventually will realize this, too.

So, want to sell your CRE property yourself? Go ahead. It's just that I make an honest living with a Real Estate Brokers license and I would never try to do your job just to cut you out of a financial gain for helping me. And, I do it with your best intentions in mind.

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

Tuesday, March 18, 2014

In Order to Purchase Las Vegas Property, You Need to Know This One Secret!

Not everyone is privileged to be able to acquire an income property in Las Vegas. And, most investors will never know the true secret to acquiring a Las Vegas Investment property because they get caught up in the Large Real Estate Firm scenario.

And, unfortunately, they continue to fall victim to this every time because they don't realize that the Large Real Estate Firm is only interested in their own bottom-line.

I know this because I have worked for large real estate firms.

IF you truly want to acquire a Las Vegas Income Property, you need to contact me.  My goal is and will always be for the benefit of my client. (You!)

I have had "others" come to town, then get a hold of me and ask: "Can you show me properties that you don't have listed?"

My answer is an affirmative Yes!

If you come to Las Vegas and hire me to help you with a property purchase, and you see a property you want to acquire.  AND, it is NOT LISTED, I will do everything I can to contact the owner and see IF they will sell.  It's truly NOT that difficult.  It might take some time since most owners who get unsolicited calls, don't return those calls.  But, I will keep trying until I get an answer for you.

So,...

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

Thursday, March 6, 2014

Warren Buffett's Long Term Advice about Investing in Real Estate

This is written by a person who follows his own advice about real estate investing. He ignores Political winds and focuses on the long term return on investment. Advice that has made him one of the riches men in the world.

http://finance.fortune.cnn.com/2014/02/24/warren-buffett-berkshire-letter/

(Copy and paste in your browser to read.)

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

Tuesday, February 18, 2014

Solid NNN Investments in Las Vegas at 7% Cap Rate!

Since late last year, I have been dealing with several out of state investors searching for popular CRE Investments that they only want to buy at an 8% Cap Rate or higher.

What these investors are neglecting is that the owners here know they have CRE investments worth at least a 7% Cap Rate.

AND, they will NOT sell for higher than that.

So, investors, please take it as the TRUTH that a 7% Cap Rate is a very good investment in Las Vegas whether you believe it or not. Sure. There have been some property acquisitions here at a price that translates to a higher Cap Rate. BUT, most of those have been for properties that went into foreclosure: AND, the banks were tired of maintaining them through the years.

AND, when you have a property with one of the largest gaming companies as a tenant that is guaranteeing the lease through the initial term, you should be jumping on this band wagon and start collecting the annual rents.

One particular property that has had investors turn their nose up at does exactly this. AND, not many Credit Tenants would be willing to do that, either.

Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88

Tuesday, February 4, 2014

Chinese Millionaires Fleeing China

On CNBC's web site, there is a report of Chinese Millionaires fleeing China because the economy is so bad there.

I have placed a link below so that you can read the report first hand.

http://www.cnbc.com/id/101388620

My suggestion to these fleeing millionaires is to please consider Las Vegas, NV as a place to invest in.  With Las Vegas recovering from the 2008 economic collapse and values beginning to increase, now is the time to take advantage of Las Vegas properties.

So, IF you have any questions about investing in Las Vegas real estate, send me an email and I will reply as quickly as possible.

Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88

Tuesday, January 14, 2014

Local News now Aware of Downtown Las Vegas Profit Prospects!

The article link below finally is giving attention to what I have been saying.  Developers and builders need to pay more attention to downtown Las Vegas because that is where the area growth potential is.

I have six properties listed that could be acquired and then torn down to make room for further development or building expansion.

The problem I have been running into is 'flippers.'  They want to buy at pennies on the dollar and then flip to Tony and make an obscene profit.  I have attracted many of my listings vowing to NOT let that happen to my clients.  Thus, the higher than usual listed prices.

However, I can vouch for the prices because Tony's Crew has acquired property through me at those very same high prices.

Ferguson's Motel SOLD for $5 million
Pete Pan Motel SOLD for $2.8 Million
A Duplex on 11th Street just closed escrow for $500,000!

Of course several properties have SOLD for less.  BUT, the Buyer was Tony's Crew.

Now, the Las Vegas Sun is starting to see the next step that I have been saying for at least two years.  (Copy and pasted the link in your browser)

http://www.vegasinc.com/business/2014/jan/13/clean-slate-reinvent-downtown-las-vegas/

IF more developers and builders would step up, the profit potential of downtown redevelopment would expand and explode.  It just is going to take a little more time than usual.

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR call 70 25 01 93 88 and you can follow David on Twitter: @DavidAHowes

Thursday, January 2, 2014

$750,000 and $1.75 Million will get you these Downtown Las Vegas Properties!

Two properties that are in the direct path of Tony Hsieh's Downtown Redevelopment Project are still available for Sale.

These prices reflect the SOLD Sales Comparable for this area.

Tony's Crew have been reluctant to move forward on these.  WHY?  I don't know.

But, IF you acquire these as is, where is, you can be the fortunate one to take advantage of the Flip Mark Up when Tony's Crew does come to their senses.

Both are in the tear down mode.  However, 123 N 9th can be redeveloped into a store front office or a local diner/restaurant/nightclub.

The 109 N 9th Street could be torn down, or rebuilt into a local grocery market, or even a restaurant/bar/meeting hall.

Both Properties were built in the 1940's+/- and do need work.

However, since these are two of the last three privately owned parcels on this block, Tony's Crew will need these eventually.

AND, there is plenty of room for a mark up.

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