Tuesday, January 30, 2018

Quick! It won't last! There's an 8% Cap Rate CRE Property For Sale in Las Vegas!

This is to alarm you!

I am NOT seeing property prices going down!

I am seeing them stabilize and in some case go up!

I know all of you are searching for that Mystical Steal!

Well, here it is!

That's right!

There is an 8.5% Cap Rate CRE Multi-Family Property in Las Vegas that needs to be acquired.

Generally, in Las Vegas, NV, most properties that would be listed at or near an 8% Cap Rate are properties I would NOT recommend to you.  These properties will have lots of hair on them and trying to trim the excess follicles will be daunting.

The problems could be that the tenant leases have less than 3 years remaining -- with no more tenant options; or they are a weak non-denominational church (type) tenant; or they are basing the 8% on whether or not the new owner will be able to re-lease the remaining vacancy up in a short time period post escrow (Not Likely).

So, if any agent, whether they are here in Las Vegas or elsewhere, is telling you, you can acquire a property for an 8% Cap Rate, please expect the sales prices to be more or less in the 6.5% Cap Rate range.  At least your chance of a better tenant or longer lease exists with that property.

BUT, with that said, this multi-family/hotel apartment property is netting +/-$20,500 per month!

Yes, it is in Downtown Las Vegas; and you could walk away with the 'that's a down and dirty property' attitude.

Yet, the tenants here are long term and the property sits right smack in the City of Las Vegas Redevelopment district.

Besides, housing is needed in this area; this is housing; and Tony Hsieh is building an apartment complex down the street.

If you don't want to buy it, lend me the money, I'll buy it and flip it in a year or so when the price has increased.

Or, I'll refinance it and pay you off.


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, January 20, 2018

"On the Edge of Sketchiness!"

Having lived and worked in Las Vegas Commercial Real Estate (CRE) going on 21 years, I have learned a thing or two about Las Vegas that most tourist will never ever know -- or even want to know.

Las Vegas Resort Casinos are prime properties.

It's as if the entire Las Vegas economy revolves around whether or not a resort casino is doing well economically or not.

For the most part, casinos generally do well.

Some are doing better than others.  Yet, some seem to just limp along month to month and these individual properties suddenly close or are sold quickly.

Recently, there was a lot of Internet talk abut the Rio being for sale.  I know one of the main executives at Caesars and he tells me that there is no way they will sell that property.

Then, my business partner who is a retired gaming executive who worked for Mike Ensign for years, tells me one of the board members wants him (the gaming executive) to bring an offer.

Do you see the problem?

Anyway, recently an 'Off Strip" resort casino property was in the news.  Now, the owner did give it his best effort to attract people to his property.

But, sometimes even the best laid out plans run a muck.

I recently found a potential buyer for this 'Off Strip' property, but just before we were to write an offer, he says to me that his investors were NOT willing to acquire a resort property that is on the "Edge of Sketchiness!"

This surprised me.  But, it shouldn't have.  The reason is that the property is located right smack on the Edge of Sketchiness.

As we spoke, he affirmed his investors position by reminding me of the other recent failures in this area.

SLS (former Sahara) was his prime example.

The SLS was once a nice property (when it was the Sahara years ago), but, once it was taken over by a corporation they drove the property into the ground.

If you don't understand how this happens, it's because corporations are profit driven.  Every aspect, department must make a profit --such as: Food & Beverage, the Casino, Housekeeping, even Retail.

And in most cases -- such as Caesars properties -- they reduced spending on certain departments so much that even preventive maintenance issues become overwhelmingly expensive while expecting and even more or better return on their (reduced) investment.

In other words, the properties begin and continue to decay from the lack of refurbishment.

My retired resort casino executive business partner once said he could tell when re-investment was absolutely required in a resort property: it was when he'd walk through a casino property and saw duck tape as a mending attempt to repair a tear in the carpet.
He said, he knew then that the management didn't have the capital to replace the worn carpet.

Thus, the Rio example.  Preventive maintenance issues?

Thus, the SLS (Sahara) example.  The location between nice neighborhood and bad.

OR, with the Lucky Dragon, the bank is pulling the plug before too much 'preventive maintenance' becomes an issue because the property is losing money and thus any future deterioration would reduce the resorts equity value?

So, on the edge of sketchiness.

What do you think it means?

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!

Monday, January 15, 2018

David, I need you to sell my Rental Houses!

If you have been a long time reader of my blog, you know that I concentrate my efforts on Commercial Real Estate.


Because, it's less emotional.
(I had grown tired of the wishy-washy buyer who wanted the mansion for $100!

Also, the home buyer who wanted to squeeze 10 pounds into a 5 pound sack.

As much as I tried to guide them, they never qualified for anything -- nor listened to reason.

Anyway, about 10 days ago, a client who owns +/-50 rental properties, emailed me asking for my help.

I once had one of his motels listed for sale, but when a certain Downtown Las Vegas buyer ran out of money, that went bust.  (I lost his listing.)

Well, here it is 4 to 5 years later and he now wants to sell 8 of his properties.

Since I don't do residential property, I had a residential agent run comps for me.
I was going to co-broker them with her, but when I met him to show him the comparable sales, he then just wanted me to find a buyer.

Okay.  (What's the catch?)

Turns out he just needed some cash (hopefully for another purchase) and thought these 8 would generate the most value. (He was right.)

So, I have a Fourplex, a Threeplex, five SFR's and a condo available for +/-$1.5 Million. I think they are a bargain.

The upside is they generate +/-$134,000 annually in Gross Rent.

So, is there someone out there (who's qualified) interested in becoming a landlord?
Anyone desiring of earning a passive income?

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!

Friday, January 5, 2018

Las Vegas Resort Casino Hotel For Sale Quietly....

This morning, I finally got a hold of the owner of a small Las Vegas Resort Casino Hotel.

He's interested in selling;


He's willing to take on a new partner!

So, if you have the stomach for acquiring a Las Vegas Resort property and the necessary $150 Million it will take to buy it, CONTACT ME ASAP!


If you want to invest in a Las Vegas Resort Property and have a minimal of $20 Million to invest in it, CONTACT ME ASAP!

Either way, you could be on your way to casino ownership!

But, you need to physically...

Contact David Howes at: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8

AND Please #Follow David on Twitter: @DavidAHowes

Have a nice day!

Thursday, January 4, 2018

Is Trump doing Putin's dirty work? And most of you don't realize it?!

During the election, I was steadily anti-Trump.

Having grown up in the Northeast US, I learned that Donald Trump in his business dealings would (allegedly) short contractors so his costs to re-build buildings would be less.

I remember a story of one of the first buildings he bought from the City of New York, that he (allegedly) paid far less than the actual cost of the building.

So, with these and other stories about Donald Trump circling and his running for president, I knew he wasn't the person I wanted running our country.

And, after he filed BK on several properties, I knew he wasn't capable of even running his companies. (My opinion.)

Now, with the GOP controlling the House and Senate, the only legislation he's passed is a Tax Reform that will (eventually) cause another recession. (My opinion that has been proven in the past.)

Now, there are plenty of articles about "Businessmen Presidents" and just how bad they were at being president.

Trump takes the cake.

With Mueller Investigating the Trump Campaign and their alleged violations of the Logan Act, Mueller is slowly turning over stones and so far finding at least two guilty pleas and several co-operating witnesses. (I believe there are more to come before this is finished.)

Knowing several attorneys as I do, they tell me the guilty pleas were to lessor charges so that the pleaders could become states evidence.

This all makes me take the leap that Trump is (in some way) working with Putin.

I believe Putin is trying to divide the US so we would become a weaker country of nation states.  (Kind of what happened to the USSR after it fall in the late last century.

So with this, I'm taking another leap of faith to say that with AG Sessions' abandoning the Obama let the states decide if marijuana is legal strategy, makes me think that the dividing of the states into nation states is fulfilling one of Putin's goals.


I am sure you don't know this but the person leading the California succession movement lives in Moscow.  (You can do your own Internet search for that story.)

So, to all of you who think that the Mueller investigation is phony or fake, I will warn you that being a continent of United States is a whole lot better than being a continent of individual nation states eg: Africa, South America and Asia.

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!

Tuesday, January 2, 2018

CRE Firms who refuse to split Commissions are struggling to survive!

This is nothing new.

Over the years, I have tried to contact certain Commercial Real Estates (CRE) Firms about properties they have listed.

Most never, ever return my inquiry.  When I finally do get a hold of them, they usually claim they are busy!
(That's a lie!)
OR, they claim they never got the message.
(Another lie!)

How do I know this?

Since I have been in Real Estate since 1991, I have learned their tricks of the trade.

Having worked on "Teams" I know that the commission splits are minimal 'IF' they have to split a procuring fee to a procuring broker.  (That would be me.)

There are several real estate brokerages here in Las Vegas Nevada that specialize in one siding all their real estate transactions.

Most claim that their Seller won't allow them to split the fee because they "Represent the Seller."

Okay.  But, since that is a legal definition; I usually one up them in that the fee being paid by the Seller isn't a representation!  In fact what the Seller is paying is just a marketing fee. 
And, the listing brokerages are using the legal definition on a marketing fee to consume the entire fee for themselves.


But, since they control the listing, there's not much I can do.

So, I'm left with asking any and all potential buyers that I am helping if they'd be willing to compensate me for helping them buy property.

Most usually will agree -- verbally; but getting it in writing is a little more difficult.

Sadly, these brokerages know this.

And, in the past, I often wondered why they were being so greedy.

But, since I am more than knowledgeable now about these things 26 years into this career, I know that these firms are struggling to survive -- even with double dipping the marketing fee.

(Their overhead is too high!)

Sure, some are large national real estate firms. Some are franchisees and as with all successful businesses, you have to be producing results to maintain their brand.

I, on the other hand, am just a local broker who has worked for a couple of these large franchises and know the score.

Could I be affiliated with a national brand?
Of course!
(I've been asked.)

But, since their shingle wouldn't help me produce a single buyer/closed transaction, I've decided that my own hard work, cold calling, and emailing qualified individual investors and property owners, will eventually lead me to financial success!

Besides, I don't go on listing appointments and lie to sellers about my large team that will be involved in selling their property.

Having worked in the past on such a "large team" at a brand name, I know that it was usually me doing (all of) the marketing, and then being subject to a small, small portion of the marketing fee. 

This is what is currently happening at these firms which refuse to split the marketing fee!

Most of their agents won't earn enough to survive unless they can split a larger fee between them.

Oh, well!

I have my own shingle, and several 'agents' licenses hung under it.  I'll just keep working toward making fair real estate transactions happen and ignore these brands properties.

If you refuse to split a marketing fee with me, I'll move on to properties where the listing brokers will.

By The Way!
I have a Northern Nevada Casino-Motel for sale.  The marketing fee isn't going to make anyone rich, but I will split it with a broker procuring a qualified buyer.

Contact me if a $2.5 Million casino motel is of interest to you.

We'll see what happens.

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!

Monday, January 1, 2018

Legal Weed - Boom or Bust?

A couple of years ago, I was (trying) helping an international investor who was dead set on acquiring a facility here in Las Vegas where he could grow and sell marijuana. So, he thought.

Since, at the time, I knew very little about the Nevada Laws on this topic, I did research to make myself a little bit knowledgeable.

Anyway, turns out he found out rather quickly that what he wanted to do, he couldn't do because in the federal sense, marijuana -- regardless of it's recreational or medical status -- is still illegal.

Thus, the Nevada Law was at the discretion of the Nevada Gaming Control Board. (Who voted that gaming sites/persons could NOT be involved in that industry.)

So, this investor couldn't open a dispensary inside a resort casino.

This meant he had to abide by their decision to NOT have dispensaries anywhere near their properties.  Oh, well.

Now that California has legalized Marijuana, a fellow Real Estate Broker I've known for years, sold a California Town last year that is near the Nevada - California border to a marijuana company.

He tells me their plan is to make a marijuana resort in the middle of a desert just off I-15 south of Primm, NV.

I thought that, that was great for him and an ideal spot to grow, sell and have marijuana enthusiast come so they could partake in their chosen lifestyle.  With this law now enacted, this should proceed. (We'll see.)

Anyway, after reading this Five Thirty Eight analysis, maybe being in the marijuana industry isn't going to be as financial beneficial as we all thought.

Pot Growers Dilemma

And since the Nevada Law was enacted in 2016, a lot of stores are popping up but will they last.

My wife's company has interior design proposals out to several marijuana businesses, but she is weary. She has been designing commercial sites for years and years and as usual, businesses come and go.

But, is this industry going to last?

Survival of the fittest?

What do I know?  I know that I am just a Commercial Real Estate Broker.  I can help you find a lawful site, but Marijuana is something I smoked as a youth and stay away from now as an older, wiser (I hope) man.

(I refuse to judge anyone.)

BUT -- if you are interested in finding a Nevada Site to open a Marijuana dispensary or grow facility, give me a call.

In the meantime, here is a summary of the Nevada Marijuana law actively in place.

Nevada Pot Law Guide

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!