Wednesday, April 29, 2015

Real Estate Investors! Banks now trying to use auction process to increase market value of their REO's!

For some reason, Banks are now using the Internet auction process, in an attempt to sell their REO's.

The bad news for the banks is that they will be dealing with the same stubborn buyers who feel that the current asking prices are too high.  And, that bringing the property to auction will NOT increase the value of their REO holdings.

However, whether the property "Sells" at auction or not, the stronger banks are going to hang in there tough and continue to focus more on the maximum value they can get for their properties through this process.

Recently, one REO property I had been watching, did sell through the auction process for slightly more than what it would have sold for through the normal real estate sales process.

What this tells me is that this property's current value -- for example -- is roughly $4 million.  Bringing the property to auction, still only made the property worth the +/- $4 Million.  (Just so you know, there were no comparable sales or any other evidence that would have made this property, overnight, increase in value at all.)

So, what can I do?  The only thing I can: which is to tell the Listing Agent or Owner, “I can get you an offer for "X" amount for your property.”  The Agent or Owner usually replies that they can find a buyer for their price.  Unfortunately, my only reply is: “Good Luck!”
(To give you some background information, several years ago, I sold a client’s last owned shopping center in which I was able to get him the highest price per square foot for a shopping center in Las Vegas at the time.  But, since that was a few years ago, he’s (conveniently) forgotten that fact.)

So, a fellow property owner, who knows little or nothing about the declining market area they are in, “thinks” he can get someone from out of the US to badly overpay for my client’s property!

The unfortunate part of this is that this is starting to happen in reality.  Last year, a Chinese investment group overpaid for a Walgreen's located on the "Strip."  Now, there are better valued properties around the entire Las Vegas valley that are worth looking at.  But, as with most investors outside of Las Vegas, they only think of Las Vegas as a Resort lined “Strip” of land.

But, if you investors would open your minds and wallets, you will find -- to your surprise -- good deals still here but outside of the “Strip.”  And, the investor that decides to believe me will be one happy camper down the road.

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

Tuesday, April 21, 2015

Chewing Out the Local Managing Director of a National Real Estate Firm for Lying!

I have been sitting on this for several months or so. I wasn't sure how I wanted to present this.


A while back, I was trying to get information on a property that was listed with a national real estate firm here in Las Vegas, NV. The agent steadily would NOT return my calls; nor even reply to my email requests.

So, I decided, since it was a bank owner property, to resend an email to the agent, and include a cc of the message to the bank asset manager so they could see I was interested in helping a client buy the building.

Not one day later, the managing director of the national real estate firm calls me to say that I had violated the law in contacting their client.

Now, I know that this was a lie, but he insisted that contacting a listing client was in fact a violation of Nevada law. (It isn't.)

I said, I did that because "your agent" refused to return my call or reply to my email.
He said, his agents were busy and didn't have time to return "non essential" inquiries.

Unfortunately, this is where I lost it. I chewed him out with such vulgarity, I can NOT recite the words here.

Paraphrasing, I called him stupid, unqualified to lead, and a LIAR! I did NOT pull any punches.

Now, IF you as a real estate agent or broker are going to lie to me, be ready for a full force retaliation. OR, just don't lie in the first place.

As far as I am concerned, this local office of this national real estate firm, is full of self righteous, arrogant, agents who think that double ending deals should be the only way to sell real estate. And, IF they happen to have another local broker on the deal, it is beneath them.

Now, I moved to Las Vegas in 1994, I did interview with this company way back then, and, I decided that it was NOT right for me. (I don't like being pigeon holed into doing only one aspect of real estate.)

So, on this transaction, I eventually found another property nearby which my client bought. And, as far as I am concerned, the managing director and most of the agents at this one national real estate firm can kiss my....

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 13, 2015

Attention Athletes & Celebrities! Net Leased Investments Help Soothe Relations with Greedy Parents/Relatives!

Now, I understand what Phillip Buchanon was going through.  His Mom demanded $1 Million for reimbursement for raising him.  This in itself is pretty sad.

However, there was a better way of paying her back for supplying him with food and shelter while he was growing up.  He was smart to NOT give her the $1 Million directly.  Instead, he bought his Mom a house.  However, he should NOT have even done that.

What he should have done was acquired a net leased property, and out of that monthly rental income money that he would receive, just paid his Mom a monthly paycheck.  Of course, she would have had the usual tax deductions from the payroll check.  And, his Mom -- being an unsophisticated investor -- would have complained about that.  But, in the long term, his finances would have been pretty steady -- given the history of NNN investments the last ten years.

Unfortunately, this is NOT the only case of family/relative greed ever.  Many, many young athletes/celebrities want to do right by their families when they are suddenly thrust into the world of high income through professional sports draft processes; or, even if they have sudden financial success in just about anything; such as: suddenly having a higher income because of a song that sells millions of copies, or a movie that explodes at the box office.

Usually, regular life goes on after these events.  And, for most, their life usually doesn't change with a song, or movie, or a sports drafting process.

But just in case, you need to have a back up plan.  Because this is where you will find your true friends, loving family, etc.

Once the sudden financial success has happened, you should then contact some one like me, a real estate broker, and we move forward with the acquisition of a NNN Investment.  This purchase should secure that financial gain you just received -- as best it can -- and then you start earning the passive monthly income.  From this acquisition, it should help you secure your standard of living and help Mom with hers.

The downside is Mom will have such a mental focus on receiving that one time $1 Million payment, she will be upset that you have decided to give her the money one month at a time.  But, you have to understand that to give her a lump sum $1 Million, she will most likely spend through it in little to no time at all.  And, have nothing to show for it in the end.

And Draft Prospects, with the NFL draft just around the corner....

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

Thursday, April 9, 2015

Even with 200 Store Closings, Walgreen's should remain as a good NNN Investment!

I had to re-read this article twice; and then double check with another news source.  But, after all that reading, I decided that Walgreen's should stay as a good NNN Investment given that the "new" Owner of Walgreen's "Boots" from the UK, is doing what all company buyers do: cut out the fat to make the profitable Walgreen's more profitable.

Does this mean that the store you just acquired or were thinking of buying will remain open?  I don't know.  All of us will have to wait to see the "list."

Anyway, here is the article I read and then re-read.  (Just copy and paste in your browser to read.)

More later -- as it unfolds in front of us.

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 6, 2015

Dumb Owners who think they know more about Real Estate than an Experienced Broker!

I have debated with myself for more than a week on this topic because I didn't want to insult a good client.

However, after many days and nights of thinking about this, I have come to the realization that the bad client involved in this has never had any respect for me as a person or my profession in general.

Since the bad client has bought and sold several properties through the years, he "thinks" he knows more about real estate than anyone else.  Even though, I have +/-23 years of experience in real estate and loans.  He may have +/-10?).  And, just because he has bought and sold several properties through the years, he has only asked me to help him maybe once -- and then, he was such a bad client, I vowed to never help him ever again.

Well, the good client who has trusted me through the years came to me a couple of years back and asked me to help him and his partners with a small shopping center they own in Las Vegas that they were upside-down on.

I said I'd give it the 'good ole college try!'

Leap forward up to a few weeks ago, my listing on the property has expired.  Now, I had suggested to the partners that they should try to have their loan bought by an investor I know.  You see their loan, which was originated by a bank, was acquired by another lender -- who bought the loan from the bank a few years ago at a large discount.  The partners do have some money to their names and the bank just wanted to remove the loan from their books to strengthen their FDIC position during the economic downturn.

However, the 'new' lender assigned an asset manager at that time to this loan.  This asset manager turned out to be a real 'jerk.'  He was going to make these men pay their loan off in in full to get out of their loan which they had all personally guaranteed.  Now, when a bank sells a loan, they usually do NOT sell the loan at face value.  They usually sell it at a discount so they can get the debt off their books. (This is another topic I can approach in the future.)

Anyway, after a year of me trying to convince the 'jerk' the property wasn't worth what the loan value/payoff was, the lender assigned another asset manager to the property.  Now, the 'new' asset manager was amendable to selling the loan to an outside source.  You see, I found an investor who I have worked with in the past -- and who has experience buying and selling real estate loans -- to contact the new asset manager to negotiate a loan buy.

Now, I tell my good client, I found someone to acquire their loan.  I tell him the plan and, then they could; 1) deed the property to the investor; or, 2) pay the investor off (plus a handling fee) and they would own their property free and clear and their guarantees would then be void.

Anyway, this investor made an offer to buy the loan, He was waiting for a response from the lender. When he hadn't heard in an appropriate amount of time, he called the 'new' asset manager.  The investor was told by the 'new' asset manager, he was negotiating a loan pay off with the current owners. I was surprised to hear this.

I immediately called my good client and asked him what was going on?  He said that the bad client who was also a partner had suggested that they handle this themselves and that they don't need an outside intermediary to buy the loan for them.

My good client told me that the bad client had suggested that they offer more than what the investor was offering.  I asked my good client: "Why would you do that?"

The good client replied, 'that the (bad client) felt that, that was more of a fair settlement on the loan and he didn't want the investor (whoever it was) coming back at them on the guarantee. (Does this make sense?) The investor was doing me a favor and he was going to void the guarantees once the deal was done.

After all of this, I am still waiting to hear IF this is going through.  The investor is upset because he now thinks I was using him as leverage for the partners (not true, since I did NOT know they were going to do this) and he is refusing to help them ever again.

And the bad client, who is a short sighted business man, is now on my never, ever help ever again for anything list where I should have kept him right from the beginning.

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