Tuesday, September 29, 2015

Just in case you didn't know: When Acquiring a Las Vegas Resort Hotel Casino, The Buyer Pays the Real Estate Fee!

Recently, and by that I mean just yesterday, a Buyer gave me a hard time about the real estate fee that I want to charge to help him acquire a Las Vegas Resort Hotel Casino Property.

At the last minute, he doesn't want to pay and said that it is customary for the Seller to pay.

Okay, true!

In normal real estate, the Seller would, as part of the listing agreement, pay the Listing Broker a fee to market the property; and, the Listing Broker in turn would normally split that fee with a Procuring Broker.

I am good with that, because, that is what normally happens in Las Vegas, too!

However, it has been a long standing understanding, that when it comes to a Resort Hotel Casino Property sale, the Seller will NOT pay any real estate commission fees.  This, the Buyer must be willing to pay, (and I will get that agreement up front before disclosing any available properties that are for sale).

End of discussion.

And, I know there are companies (people) who think that they are better off going around a Broker. (There are several Sellers right here in Las Vegas who feel they know real estate better than a Broker.)  And I will live with that, too!

So, if you want to acquire a NON-GAMING property, I can find a property where the Seller pays my fee.

If you want to acquire a Las Vegas Resort Property, the BUYER has to pay my fee.

And, I only ask for 1%!  When Clark County bought the Riviera, they paid Morgan Stanley 3.5%

So, who rips Buyers off more?  You decide.

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

Wednesday, September 23, 2015

"It ain't over, til it's over," Yogi Berra RIP

As a youth growing up in the 60's and 70's, I was a huge baseball fan.

Then, the owners and players got greedy and each didn't want to give.  It made me sad that MLB finally decided that a strike was the only recourse.  (I don't like strikes.  It slows down progress.)

Anyway, as a Red Sox fan, I hated the Yankees because they seemed to always have the Red Sox's number.  And, they were never going to be denied.

However, one Yankee was always my favorite Yankee: Yogi Berra.  I don't know why.  Maybe it was because as a kid who only got to look from the outside looking in, that Yogi loved baseball.  He was going to play, rain or shine.

I decided to look up some of Yogi's quips.  I knew he had a lot, but I didn't know they all made a lot of sense...


"Baseball is 90 percent mental. The other half is physical."
"All pitchers are liars or crybabies."
"He hits from both sides of the plate. He's amphibious."
"You can't think and hit at the same time."
"So, I'm ugly. I never saw anyone hit with his face."
"It's déjà vu all over again."
"Even Napoleon had his Watergate."
"You can observe a lot just by watching."
"I'm not going to buy my kids an encyclopedia. Let them walk to school like I did."
"Why buy good luggage? You only use it when you travel."
"The towels were so thick there I could hardly close my suitcase."
"Cut my pie into four pieces. I don't think I could eat eight."
"Never answer an anonymous letter."
"When you come to a fork in the road, take it."
"If you don't know where you are going, you'll end up someplace else."
"Nobody goes there anymore. It's too crowded."
"If you can't imitate him, don't copy him."
"The future ain't what it used to be."
"A nickel ain't worth a dime anymore."
"I never said most of the things I said."
"It ain't over 'til it's over."
"Always go to other people's funerals. Otherwise, they won't come to yours."

RIP, Yogi.

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

Friday, September 11, 2015

Las Vegas Multi-Tenant Retail For Sale at +/-7% Cap Rate!

Now, here is a steal!

Just when I think that the Las Vegas (steals) deals are gone, the agent for this owner sends me a property that the owner wants to sell their well located Multi-Tenant Retail Center!!

There is a great opportunity for you to acquire this well located property on a very, very busy street in Las Vegas!

However, you must act rapidly!  This will be in the SOLD! very quickly!  (Send me an email and I will forward the property details!!)

This means that you can acquired a multi-tenant property with NNN leases on a busy west Las Vegas street!  A Property like this doesn't last very long on the market; and, your neighbors will be Starbucks, Jersey Mike's and WeinerSchnitzel!

I have been blogging about NET LEASED INVESTMENTS!  That is where the Tenant pays the building Real Estate Taxes, Insurance and (most) of the maintenance on top of their annual rent!

AND, the Anchor Tenant is a Regional Credit Tenant owned by a Regional Gaming Corporation!
And, an offer at or about a 7.5% Cap Rate, might get you into escrow, this means you re-coup your initial investment in +/-14 Years!

This property is listed at just less than $5 Million.

The leases and tenant financials are available only to those who call or email me.  I suggest you do so as soon as you finish reading this so you do NOT swing and miss on this too good of an opportunity!

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

Friday, September 4, 2015

Looking for an 8% Cap Rate In Las Vegas? Don't! What's left are crappy properties!

This is NOT to alarm you!  But, if you are seeking an 8% Cap Rate or higher for commercial real estate in Las Vegas, "I laugh in your general direction!"

I was approached by a New York Buyer who had contacted many, many Las Vegas Real Estate Brokers because he thought that contacting more than one was going to get him an inside tract to a property where a Seller was dumb enough to sell a property at his purchase price.

I could not stop laughing. (Okay, I was smiling.  But he couldn't see because we were speaking on the telephone.)

Anyway, he told me that he had found a property where the owner was willing to sell at a price that was more than an 8% Cap Rate.

I told him that, that property was hard to lease because finding a tenant to lease the property up was very, very difficult.  I know this because the owner had owned the property for several years and struggled to lease the property because the area is NOT conductive to retail.  Sure there are a few retail tenants in the area, but for the most part, a convenience store and a tattoo parlor are usually hard to find locations.  So, they usually take any location they can find.

Anyway, since the property had vacancy, the New York Buyer said that the seller was willing to pay 1 year's worth of rent for the vacancy -- or until the New York Buyer was able to lease the space.

Okay, I had to be careful since the agent the New York Buyer was working with had told him that this was a good deal -- because the Seller would cover the rent for up to one year.

I told him that just because he was getting the property at an 8% Cap Rate, other bottom feeder clients I have passed on this property because they know that the space is impossible to lease.

But, he is from New York and he knows better than me.  I only live and work in Las Vegas and I had, had the lease listing on this property more than ten years ago.  (And, back then, I was not able to lease the property up 100% because the area the property is in is not conductive to retail.)

Lesson learned.  Any questions?

Generally, right now in Las Vegas, most 8% Cap Rates are properties I would NOT recommend.
The problem is that the leases (usually) have less then 5 years remaining; or they are a church tenant; or they are basing the 8% on whether or not the new owner can lease the remaining vacancy up in a short time period (Not Likely).

But, since this one particular property had a price reduction to slightly higher than 7.5% Cap Rate, it amazed me the vulnerability that puts know it all New York Buyers in.

So, if you are a serious buyer with intent to acquire a long term solid investment; and are willing to pay slightly more for the solid investment, give me a call.

There are solid CRE investments in Las Vegas.  Unfortunately, they are just not going to be sold at an 8% Cap Rate.

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