Tuesday, May 28, 2019

'I made him an offer he didn't refuse.'

Speaking of successful business persons, I ran into an old Client a while back who met me for coffee at a national chain sit down restaurant on the west side of Las Vegas.

After meeting, as we were leaving, he walked up to a (fairly new) White Rolls Royce Ghost parked just outside the restaurant.

I made a comment about him having completely moved to Las Vegas, otherwise, why else would he bring his Rolls with him.

He replied, 'No, that one was still in LA!'

He added, that another business man we both know had asked him for a short term loan.  My client asked the other business man what he had for collateral?
The other guy said he would put his title to a new Rolls Royce Ghost up.


So, they struck a deal. "I made him an offer he didn't refuse," the Client said.

My client took title to the $300K valued Rolls in exchange for a $200K loan.

I asked, So, the other guy never paid you back?

My client replied, 'Of, course not.  That's why I have a Rolls here in Las Vegas and my other one in LA."

Smart man.

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!

Thursday, May 23, 2019

He's a 'Talker!'

Years ago, when I left Residential Real Estate to work solely in Commercial Real Estate (CRE), I met an Owner of an adult club who in his life time once owned about 40 adult nude/strip clubs across the country.

Now, by the time I met him, he only owned two adult clubs: one in Hollywood and the other here in Las Vegas.

Now, he wanted to keep his Hollywood one because that was an income producing property for him.
But, he was thinking of selling his Las Vegas club and was being very iffy about the sale.

Anyway, he had agreed to pay me if I procured him a buyer.

Well, being the ambitious CRE Broker I am, I set out to find the perfect buyer.

Along comes this one Buyer who had a great story.  This Buyer could rattle off his accomplishments. And he could tell you what he had owned, and where he was headed without hesitation.  He knew business inside and out.

This Buyer was interested in owning an adult club in Las Vegas; and, I knew the property he should acquire.

Well, this Buyer comes to town and the Club Owner agreed to meet us at his club (that was now closed) to go over any potential offer that might be discussed.

As we were listening to the Buyer rattle off his accomplishments and business acumen stories; he suddenly shifted gears.  Instead of Buying the Club, he wanted a management contract to operate the club for the Owner.

The Owner said, 'No.'  That's not what he wanted.

Needless to say, there was no deal struck that day.

After the Buyer and his cronies left, the Owner turned to me and asked me about the Buyer.
Since I didn't know much, I didn't realize that he was going to ask about managing the club.

The Owner said not to worry.  He has run into that type of Buyer many times over the years.
The Owner said the Buyer was a 'Talker."

At first I didn't understand what he was saying, then, it hit me.

The Owner explained that Talkers are all talk.  And, he said he pegged this guy early and knew the routine.  He told me to learn from this and be aware of them in the future.
He also advised me to not waste too much time with them because Talkers never buy.

To this day, this Buyer hasn't bought anything -- well, at least through me.

Through the ensuing years, I've run into several 'Talkers' and true to the Adult Club Owner's word, they have never bought.  Ever.

So, since then, when I run into "Talkers," I politely will listen to them (just as the Owner did); I will help them (a little bit); but, I don't put any faith in them at all.  Talkers have never, ever helped me earn any money.

Lesson learned.

Now, I could call them on the carpet and blast them for wasting my time, but, you see, I don't do that because there is that slim, less than 1% of 1/10th% that they just might buy in the future.

As you all should know, "It's Real Estate."

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, May 14, 2019

A Re-Look at Tony Hsieh's Downtown Las Vegas Five Years Forward

Almost five years ago, I wrote a blog about how Tony Hsieh had bought up a lot of the east section of Downtown Las Vegas.

Then, I was critical of his lack of development vision of this section.

True, I helped Tony buy (over pay for) some properties of Owner Clients of mine.  AND, I failed to get Tony to buy other properties.

Tony Hsieh

Yet, at that time, Tony was buying and sitting on properties.  This made me wonder: why'd he buy them in the first place?

Did he run out of money?
Did he NOT have a plan?
Was he being represented by unscrupulous agents/attorneys, etc?

The answers to those, I will never know.

Here is the blog that I had written then.

Where Tony has Failed Blog

Now, Five years forward, it's time for me to admit I was wrong -- five years ago.

Tony has, on his schedule -- not mine, begun the re-development of this area.

Tony has brought in people who seem to now have his back when it comes to acquiring Downtown Las Vegas properties. (In other words, they now low ball like the others were doing years ago and flipping them to Tony!)

And, my clients have moved on to other properties where they are making returns that suit them.

Why do I have a change of attitude toward Tony Hsieh?

Well,

Tony developed the Fremont 9 Apartment property.
Tony financed the building of an event hall (with underground parking!).
Tony constructed a dog day care.
Tony holds an annual event called Life is Beautiful which was designed to get foot traffic into the downtown area.
Tony's original development was the Container Park.  (I still think this isn't successful. But what do I know?)
Tony has bought or developed a lot of businesses; from motel properties, tavern properties and even a business that rent out fifth wheel vehicles/trailers to tourists so that they can come to Las Vegas , then get out of Las Vegas to visit/camp-out at one of the nearby National Parks, etc.

So, did my criticism of Tony have anything to do with this?
No.

I now think Tony Hsieh knew exactly what he was doing.  I am convinced Tony had a plan all along and he was smart enough to ignore his critics (like me).
(It's what you need to do to focus on your vision.)

Lesson Learned.
I wish Tony all the best in his future endeavors!

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!

Sunday, May 12, 2019

Friday, May 3, 2019

Lesson Learned! Never accept a Bond as an Earnest Money Deposit!

The motel escrow that I have been in for about a month has gone sideways!

I had a bad feeling about accepting a Bond as an Earnest Money Deposit (EMD). So, I contacted Escrow asking if it was okay.

Once they gave it an approval, I gave it a thumbs up for my Seller client, and we submitted the Executed Offer (PSA) to escrow and then waited.

A week later the Buyer's agent showed up with the Bond that was described in the PSA. He made the deposit.

Then, about a week after that, I get a call from the Escrow Holder.  She explained that the Title Company's attorney slapped her on the wrist for allowing a Bond to be accepted as EMD.

She said we needed to change that to a Cash Deposit, or by the end of the Buyer's Due Diligence, the Title Company would be resigning from the Escrow.

SIGH!

What type of mess did I get myself into?

The Escrow Holder said it would be best to cancel the current escrow, open a new escrow, and make a cash deposit.

So, I encouraged the Buyer's Agent to convince the Buyer to cancel; the Seller agreed and for once quickly signed the Cancellation Addendum.

But, the Buyer is now taking her time.

Oh, well.

She might be upset, but it's her own fault for trying to force a square peg into a round hole.

I did write a NEW PSA and included an additional property that was NOT available that she wanted when the first PSA was written.  BUT, now I am thinking she probably didn't have the cash to move forward in the first place.

That is just my gut feeling.

So, we are in limbo until the Buyer signs the Cancellation Addendum; AND, signs the new PSA.

If the Due Diligence date comes before that, the title's escrow will resign.  The Buyer will be in a legal limbo, but the out for the Seller is they never truly made their EMD according the the Title Company's attorney.

Since this hit the fan, I have learned that back in the 1980's Buyers would put up bonds as EMD's.  Then, the Bonds turned out to be worthless; and, it would tie up properties until there was a (legal)  resolution.

So, lesson learned.

All I want to do is help my Seller client sell his property for the most money to a willing, able, and capable buyer.

Nothing new there.

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!