Monday, February 27, 2017

Urban vs Rural; OR, Blue vs Red

A couple of weeks ago, I wrote a blog about how 57 counties in the US of A are responsible for 2/3's of the nation's GNP; while 3,182 counties or there about only contribute to 1/3rd of that amount.

This got me thinking about an article I read a long time ago from a Princeton University Professor who said we didn't live in Democrat or Republican Societies; we actually live in Urban and Rural Societies.

I now know this to be more true than ever.

For the most part, Urban societies are about growth, working and living close to each other.  This actually requires Urban Society rules of courtesy and accommodation; whereas, Rural Societies are more about individual strength, living on your own, providing for yourself and family what the land gives.  They are more encouraged by self governing, and not worrying about whether your neighbor is making too much noise at 2 AM.  Rural Society feels that any government regulation is an intrusion upon their lifestyle.  So, they are not going to have any part of it.

Once, while talking to an Urban Planner, he remarked that Urban Society rules will work in a Rural Society Setting just as wells as in the city;  but, he continued, that, Rural Rules would never work in an Urban Society Setting at all.

And, I think that is the reason Rural Society doesn't like or fit into Urban Society -- especially when Urban Society moves too close to Rural -- think Oil and Water.

Let's take for example, this current news story from the Las Vegas Review Journal.  A lot of you will have no idea what or where Blue Diamond is -- except you might think that, that is the name of a Street here in Southern Nevada.

Blue Diamond Development

But, a local developer, who acquired +/-2,400 acres on a Mesa in the southwest of the Las Vegas Valley, wants to build single family homes on what was once a Gypsum Mine located on this Mesa; and, the good folks of Blue Diamond, being the proud members of a Rural Society, don't want the influx of traffic, the new homes, and especially -- the number of people who would be using this new development as their place of residence.

That's right.  The current residents of Blue Diamond don't want Urban Society invading (moving into) their Rural Society.

Which is sad, because, with the influx of the new homes, this Rural Society would see the increase the Blue Diamond's revenue, increase in retail spending, newer commercial development, and the ease of expanding their economic output.  Thus, in other words, increasing their profit potential from adding to the County's, State's, and the Countries GNP!

But, because of their 'back off!' attitude; which could easily translate into we don't want your kind, which is mistaken for racial prejudice -- regardless of Who actually moves into the new development, they would forgo the economic improvement to their lives because...well, their Rural Society Lifestyle would have to change -- for the most part.

Now, I am sure that the current residents of Blue Diamond are very, good God fearing, wonderful people.  But, unless they understand that the only way to improve themselves and to improve their lives is to embrace progress, their community will eventually die -- just as other counties in other states where they solely only want their old factory job to be returned to them that in reality is never, ever going to happen.

In an Urban Society, from what I can tell, progress is the way for an Society -- whether Urban or Rural -- to continue to look forward to the  horizon that is directly in front of you.

If you are just looking at what was, and not at what could be, this has and always will lead every Society to ruin.  Just take a look at the numerous ghost towns that failed to see what was coming.

Urban or Rural.  Progress keeps a Society active and economically growing.

Just my two cents.

To Contact David Howes try: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!

Saturday, February 25, 2017

Las Vegas CRE Resort Investment Property Do's and Don'ts!

For some reason, quite a few "investors" ask me about financials for certain 'well located' Resort, Hotel, Motel and Gaming Properties.

Looking at and analyzing the financial statement would be the normal way of processing whether or not a 'well located' property is worth a specific sales price.

However, Las Vegas Resort properties suffer from the fact the Owners are well aware about their property situation, and the prominence of their location.  And, since most of the 'Buyers' are unaware, it is important for these Buyers to know and to understand -- before even asking -- that the most important feature of these properties are: the H-1 zoning, the fact that they lie within the Clark County Gaming Overlay; and that there is a future upside IF a certain Resort Property has elements  surrounding the property that would evolve into a massive development.

So, what is the current owner to do?  Well, that answer is easy: they hold out for their price.

Unfortunately, these well intended Buyers come along, and they 'think' they are smarter than the Sellers; and they try in vain to overtly explain to the Seller the 'why?' the Resort property isn't worth what the Seller wants in order to sell.

For example, the $10 Million an acre is a number that is thrown around here in Las Vegas for property located on the Famous Las Vegas Strip.  (Now, this is an approximate measure of value that the land under the Resort hotel, motel that Sellers use as their gauge of value for their property.)

The problem with this is that there are some Buyers who will -- because of a sense of desire -- overpay for a property -- thus set an unrealistic bar for us Real Estate Brokers.

Yeah!  It is great for our bank accounts.  However, it sends an unrealistic value ripple effect through the neighboring properties.

When this happens, the Owners/Sellers now think that their property is worth that or more simply because their properties are NOT vacant, better maintained, even though NOT as 'well located.'

So, when I know of a property that is available for sale at $10 Million an acre, lets say, that I know that, that price -- set by the 'Seller' -- is in fact worth that amount because a similar property down the street sold for that exact amount.

And because of this established price, asking for financial information, will NOT reflect the Sellers Selling value adequately.

I do know that the financials show a particular Cap Rate; and, I do know that the high asking price will be more than a buyer is used to paying to acquire a well located property.  But, since the Seller has bought and Sold properties through the years, I do know, that they know the value and will sell at that value.

You understand, right?

So, potential Resort Buyers, please listen to me: when you review the marketing information I send you, please remember that the price is the price -- especially for a Resort property along the "Strip."

So, 'Do' ask me questions about Las Vegas Commercial Real Estate!  I will gladly answer all of your questions as honestly and as effectively as I can.

But, please 'Don't' come to Las Vegas thinking you are going to acquire a 'well located' Resort property below market value.

Hopefully, you and I are now on the same page?

To Contact David Howes try: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!

Saturday, February 18, 2017

Well, Caesar's had to have had a way to pay for their Bankruptcy!

When I first heard this, that's what I thought.

Caesar's Entertainment just completed their bankruptcy and since it cost them tens if not hundreds of millions in attorneys fees, I knew that, that cost would be passed on to their visitors somehow.

Well, that's not the official standing, anyway.
The Caesar bosses are proclaiming better WiFi service in the rooms, maintaining passes to their property's fitness center, and a whole lot of other gobble-gook.

But, the fees are here to stay -- and they will charge them for as long as visitors continue to book and stay at their properties and are willing to fork over their hard earned money.

Resort Fees to Increase at Caesars Entertainment Properties

Anyway, the other sad note is that even Free Parking at Resort Properties is a thing of the past, too!
Now, if you are staying at the property there is a discount. But, that varies property to property.

Years ago, when I first moved to Las Vegas, I took a part-time job as a taxi driver -- to get familiar with the city and 'Strip!'  And, once picked up a lady at a casino and drove her to the airport.

Along the way, as we were talking, she said (paraphrasing here) that she remembered when Las Vegas was eloquent.  She said, Las Vegas had turned into a K-Mart.  When she first came to Las Vegas years ago, it was a different time; a time when people dressed up to go down to the casino just to gamble.

I asked: why did she think it changed so much?  What she said next, I will remember this for the rest of my life.

She said, Las Vegas changed when the casinos were bought up by corporations.  She said when the 'mob' ran Vegas, they made sure you got a meal and freebies to remember your visit.  Now, she continued, everything is a profit center.

And she laughed, even housekeeping.

As I sit here today, I ponder her statement. and ask myself, How are they going to make money through housekeeping?

Oh, that's right!  In the future -- near or far -- prepare yourself for a Resort to charge a "Housekeeping Fee."

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

Saturday, February 11, 2017

Are Congressmen & Senators Non-College Educated, Too?

Don ran an excellent Presidential campaign that focused on core issues as "bad" (when they weren't) and stirring up so much anti Hillary sediment.  While doing this, he confused rural Americans into thinking because he was a businessman, he was the "only one who can fix it" person.

(The problem with this is that throughout US history, businessmen who became president are some of the worst presidents ever! (Don't believe me? Look it up.)

And, this: "I'm the only one who can fix it" attitude, enabled him to confuse and con the rural Americans into voting for him.  They (apparently) goose-stepped to the polls thinking he was going to be able to do what no other President would or could do.

(Boy, did these rural Americans get conned.  The majority of rural counties (+/-3,100) voted for Don; whereas, the majority of Urban counties (+/-57) voted for Hillary.)

And all during the 2016 Presidential campaign, Don kept saying how bad the Affordable Care Act (Obama care) was.  And, by doing this, he convinced rural Americans that the insurance that was actually helping them, was horrible for them.

However, the problem with Obama care, according to the Speaker of the House, Paul Ryan, was that insurers systematically pulled out of states -- thus enabling one insurer to have a monopoly within that state, that enabled them to charge more money in that state, thus the monthly increase in their premiums.  (And, they were able to do this because of the limited, or very, very weak Federal Regulation.)  And because there was no mandate stating: "You must provide insurance to all," They decided that they weren't making enough money.

Through the years, I've asked why there is no Federal Regulation for Insurers -- just as there is for Federal Mortgages, etc.  You've heard of the 'Equal Opportunity' line when applying for a mortgage, right?

So, why is there no Equal Opportunity for Insurance?

Paul Ryan explains why ACA Premiums increased

The reason is: the insurers don't want any Federal Regulation on their industry, so they continually lobby and contribute (pay off) to Congress person elections to avoid being regulated.

The problem is: Insurers are in the business of making money.  They truly don't care whether or not you are healthy; or, have adequate health care coverage, as long as you pay them your premium. That's all they want.

Oh, and if you want to have better coverage, or have a lower monthly premium, you must have a higher than normal deductible.  (Does this sound about right?)

Affordable Care Act Explained

And, the protests we are seeing at Congressional Town Hall Meetings of these Congress persons from these rural American Counties, is having an affect on them.  Even these supposed Non-College Educated rural Americans are finally realizing that they were conned, too.

These elected Congress persons or Senators are starting to feel the heat that repealing Obama care as Don has demanded -- or even changing it to what the insurers want -- will result in them NOT being re-elected.

This makes me think: Are these politicians Non-College Educated, too?  It's obvious, they didn't understand the Affordable Health Care Act in the first place.

I know that Don still doesn't understand it.  (He claims he doesn't like to read, so, I am guessing that he hasn't read it, nor has anyone around him.)

Don't Change My Health Insurance

So, all you politicians: Maybe it's time that you stop taking insurer's money and start focusing on your constituents, because if you don't; if you continue to support a bad president and his lame policies, you will be out of office the next election cycle.

Ignore Constituents and you are out!

Now, I knew that there was a huge campaign to 'Hate Hillary' this past Presidential Election.  I just didn't think rural Americans would be so easily persuaded as they were.

PS: If running for president, please remember: "Democracy was never meant to be efficient."

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

Saturday, February 4, 2017

If I ever run for President, I will run as a Republican because they believe everything that Fox News tells them.

To me, it is astonishing to realize just how uninformed the majority of US Voters truly are.

In 1998, Donald Trump said, "If I ever run for President, I will run as a Republican because they believe everything that Fox News tells them."

Unfortunately, Don was correct.

In the 2016 Presidential election, out of all the US Counties, Don won 3,100 plus! (I still don't know why these county residents were swayed by the Trump/Bannon hateful rhetoric.)

But, what most people don't realize is that counties Trump won in the US election are the lowest producing economic counties in the US.  The one lone exception that stands out to me is: Maricopa County, AZ.

The sad thing is, Clinton carried the counties, that combined, make up 64% of the US GNP.  Which means that the 57 Counties who voted for Hillary Clinton are more prosperous than all the of counties that Trump won.

Counties with highest GNP

This leads me to know that if a county is that prosperous, and they supply so much economic value to the country, why don't the other counties that are poorer, follow their lead?

I realize that most can't do what most of the more prosperous counties do.

And I believe that the reason is, they don't look beyond their horizon.  They don't see the forest for the trees.  They keep doing the same thing over and over, expecting a different result.

They (foolishly) believed that an arrogant, narcissistic man who said he will bring their jobs back, when in fact 60%+/- of those "lost" jobs (since 1979) never, ever left the country in the first place. (Automation was cheaper for the factory than the human.)

But, instead of re-tooling; instead of looking ahead; these (now old) factory workers longed for their widget making job back.  (Massive mistake.)

So, if 50 counties have more economic power than all of the counties that Trump won, why don't those 3,100+ county leaders do something about it.

Could it be even the leaders of those counties can't get out of their own way?

The bottom-line is:

Trump is NOT going to bring back any of those lost jobs.
Trump will waste money building a "wall" along the southern border when in reality, it is not necessary.  (90% of Illegal Immigrants overstay their visas.  They don't stupidly attempt to cross 100's of miles of open desert.  It is a deadly thing to attempt. I don't care what the Reality TV shows indicate.)

Trump WILL increase the US National Debt by doing things that cost money, without a means or way to pay for them.

Sure.  Trump can cancel overpaying for a new plane; Trump can sign lots of 'Executive Orders' banning Muslims from entering the country (Out of ALL the Muslim nations, he selected the 7 nations where he doesn't currently have a business or operating hotel interest.)

Yet, Trump doesn't know how to play well with others.  Leaks from the White House indicate there is a pending massive exodus waiting to happen.  (And, he has only been President two weeks!)

You can only invalidate some so much before they lose respect for you as a person and/or leader.

(Trump, I believe, thought being President amounted to him just issuing orders; and Congress goose stepping along with those orders without questioning him.)

Sooner or later, (I hope sooner) the non college educated voter will realize just how stupidly they were selecting the man with the big mouth spewing hateful rhetoric.

And I hope and pray somewhere within the walls of Congress, an impeachment process is lingering.

If Obama had tried to do any of this stuff that Trump is trying to do, the GOP would already have begun the impeachment process.

Democracy was never intended to be efficient!

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