Showing posts with label Development; Las Vegas Investments. Show all posts
Showing posts with label Development; Las Vegas Investments. Show all posts

Friday, July 24, 2020

Dealing with an Inexperienced 'Know-It-All' Real Estate Agent

First: I will survive a 30 day All Cash Real Estate Escrow.  (That's a fact!)

Second: I am NOT sure I will ever recover from this "New" Agent's idiocy!

He works for a local real estate company that has had a nice success rate.  I'm sure there are agents there that are competent and worthy for anyone to work with.

But, on this particular transaction, this agent has tried his best -- in my opinion -- to get my client/friend to remove me so he can be the only agent in the deal.

Why?

I don't know -- 3rd Base!



Yes!  That's how confusing this has become, and we are still NOT in an Open Escrow, yet!

Here's the background:
On Sunday just past, I receive a call from a Buyer.  He saw my plex properties on a listing service.
And, it turns out, he wants to buy two of them!  Okay.

After discussing the price points, the Buyer wanted to think about it.

A day or so later, my client/friend says he is thinking of listing the two most horrible looking, lack of curb appeal, cost ridden plex properties with someone on the Multiple Listing Service. (I am NOT a Realtor and I have found as a CRE Broker, the Multiple Listing Service is great for homes -- lousy for commercial buildings)
To me that's okay because the Seller's price is retail, and the Buyer's prices have all been wholesale. (He won't accept wholesale and I thought I would just cut my losses.)

Anyway, the buyer then disappears for a few days, then I get a Realtor form offer from this agent for that particular Buyer.  A sleazy move on the Buyer;s part, but okay.

The one offer is for two properties (which the seller owns under two different entities); and, they are low ball prices.

Turns out, the buyer called me, got first hand information on the properties, then went back to the agent to write the offer.

At First I am offended, but Hey, "It's Real Estate," said Mike Sitren.

Anyway, turns out this agent does have a lot of listings, yet I have had other Buyers who worked with him in the past tell me he tried to do things they were uncomfortable with. (That's another story for later.)

Anyway, as I try to help him understand that there needs to be two offers, and I Counter his one offer for 2 properties with 2 offers for one property each, he starts to insult me, my forms, and boldface lies about regulations. (I doubled checked with the state on a few of his pronouncements that he was sure were illegal.  They are not, according to the NVRED.)

Now, I am wondering: Is my client/friend going to sign the 'new' offers (one for each property) that the agent (reluctantly) finally agreed to write? Time will tell.

After we (I am hopeful) close this transaction, I know I will be moving on to other deals already in process!

PS: In my near 29 year experience, sleazy agents will crash and burn sooner than later.
This agent needs to go sooner.

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, July 18, 2020

14 down, 7 to Go!

Sounds like a Football or Basketball score, doesn't it?

Out of the 21 properties I have had listed, I have been able to sell 14 of them!

Yes, I need to replace the Sold listings with other listings, but all in due course.

I listed a portfolio of 12 Single Family Homes (SFRs) including a townhouse and a condo.

I listed three motels.

I listed a portfolio of 6 Multifamily apartments.

I still have those remaining because they are extreme value added and the Seller wants his price.
(Still working an offer that might work, though.)

In the meantime, if interested in acquiring a Las Vegas property...

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, June 29, 2020

Luxor and Excalibur to be Demolished?

Never cared for the Luxor.

Even though you can see the top spot light illuminating the night sky from my house -- even on over case nights.
To be honest, I think I've only been inside in the life of the property maybe 6 times?

Excalibur was a place we stayed at with our kids in the 1990's before moving here.  We wanted to get a feel for the city during a Thanksgiving weekend. (That was a mistake!)

Anyway, it's a rumor these are to be turn down.



Here's the article: 

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, June 28, 2020

I Will Serve You With A Subpoena!

Wow!

Never thought I'd have to be subject to being subpoenaed.

But, when you are trying to market a downtrodden building, and a tenant causes the building to catch fire, I guess other Tenants consider that a violation of their rights?

This all stems from the fire, caused by a tenant using their stove to heat their studio apartment at the Alpine Motel Apartments!

Yes, I was the broker trying to sell the property As Is, Where Is.
But this plaintiff's attorney is fishing for information.

It is my understanding that you may have represented Mr. Orozco regarding a potential sale of the
Alpine Motel in August of 2019.  At the very least, I understand that you were the broker. 

Please forward to me all images, inspections, notes, contracts, agreements, emails regarding such.

Obviously, this is just an email and you do not have to respond. Unfortunately, because of COVID, I
cannot serve a subpoena at this time.  However, as of July 1, I can.  So, either you respond this
way, or, after July 1, I will serve you with a subpoena.  Your choice. 

At the very least, demand is hereby made that you take steps to preserve all emails, notes,
inspections, letters, agreements, communications, and images related to Mr. Orozco and/or the
Alpine Motel. 

Alpine Motel Apartments

Well, I am going to talk to my golf buddy attorney to see about this.

Most likely I will co-operate because I only have a few things he's asking for. Probably best to take the high road.

"When in doubt, tell the truth!" Mark Twain

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, June 4, 2020

The Economy Motel in Downtown Las Vegas is SOLD!

It took a while.

It was grueling to the end!

But the Seller is happy to get almost what he wanted for this property.

The Economy Motel

It would have Sold sooner for a cheaper price if the Buyer hadn't been so stupid!

YES! The previous Buyer stupidly canceled escrow the day before closing because he feared the US Travel Ban and the COVID19 virus was going to have an adverse effect on his property ownership.

Neither was a reason to cancel.  Thus, his $250,000 Earnest Money Deposit (EMD) was going to be forfeited if he hadn't stepped back up and made another deal.

Because of his actions, he had to pay a penalty.  You do know that if you cancel escrow (default), your EMD becomes nonrefundable and is released to the seller, right?
Especially, if you are scheduled to fund and closed the next day.

Some Buyers are just too dumb to realize they are NOT that smart.

So, The Economy Motel is in a new owners control.  We'll see just what happens to it in the next year or so.

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, June 1, 2020

Fontainebleau (Drew) is in Default AGAIN!

I hope everyone, by now, knows that the section of the "STRIP!" where the Fontainebleau (Drew) is located, is NOT a choice area!



Drew (former Fontainebleau) in Default!


I wonder: Who is idiotic enough to acquire this tear down at full retail value?

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!

Wednesday, May 27, 2020

Be Aware of Who is in your Audience!

Years ago, I learned, via a more experienced broker than I was at the time, ALL DEVELOPERS lie!

Now, a developer can come along and adamantly state: They never lie! Okay!  I believe they believe that's true.

But, in my 28.5 years of real estate experience, developers lie -- all the time.

Once, while at a event, a developer was giving his presentation on how to buy land to develop it.
Unfortunately, for him, he didn't realize several audience members were wealthy land owners.

I was sitting next to one and I did my best to keep my lips sealed and listen to the presenter's lies.  The land owner was doing likewise.

Anyway, this developer talked about how he's able to acquire land cheaply in order to have a greater profit post sale, development and leasing up of the development.

I had the feeling he thought all attendees there were want to be developers.  It never occurred to him that maybe a handful were actually Owners(?).

Anyway, after the developer's spiel was complete, and as we were exiting, the land owner I sat near, quietly said, "I would never, ever sell my land to that guy.  What a moron!  That guy doesn't realize that half the audience knows more than he does."

Now, the developer is/was a well known builder in the Las Vegas Valley at the time; the Land Owner still has more an 100 acres to his name.  And, Yes, he's developed much of his own property.  He buys, builds and leases out what he can get accomplished in the area where his land is located. Needless to say, he makes a great living.

Moral of the Story: Know your audience!

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, May 15, 2020

It's Real Estate!

Yesterday, while showing one of the Motels I have for sale here in Las Vegas, I was talking to the Buyer/Investor about the Pandemic.

Our discussion centered around rental properties and how they make you money over time.

The Investor said he had given up on stocks via the Stock Market because they always lost money.
(I told him about my theory that the Stock Market is nothing more than legalize gambling.  He thought about it for a second and agreed.)

Anyway, he sticks to just real estate now, because he said even though he doesn't make as much money as he thought when sells a real estate property; he said if he holds them for a while, and rents them out, when he does sell, he's never lost money.

He said the trick is to buy with as little of a loan as possible.  Cash is better, of course!

Thus, I remarked that, that is what I have found.  I own rental property and over time the value, rents and aggravation all grow, but in the end, I have always sold for more than I paid for them.

And, if you buy correctly, that limits your downside when selling.

That made me think of when I first entered real estate under Mike Sitren, way back in 1991.
We sold HUD OWNED Homes, originated the loans to financed the buyers purchase and made money both ways!

Now, almost 30 years on, I am just selling CRE and working the rental properties as needed.
It always reminds me of Mike saying when things go rough during a real estate transaction: "It's Real Estate!"

And with this pandemic running rampantly through our lives, if you don't settle down and ride it out, the only real estate in your future, will be a grave plot.

My apologies for end on such a sour note, but if you have an interest in Las Vegas CRE...

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 12, 2020

"You Need To Pay My Broker!"

Developers!

All of the Developers I have worked with throughout my near 30 year Real Estate Career have always been the same: Greedy!

Recently, I have been going back and forth with a S Cal Developer, who used to be licensed as a real estate agent in California, who is now searching for Las Vegas houses (to buy and flip).

Fortunately, I have a seller client who will sell his rental houses in a portfolio all cash.

After going back and forth with the Developer, and settling on the price and terms, the developer then throws in that I have to split the procuring commission with his "broker!"

What?

Apparently, this Developer wants half the procuring commission and he found a local agent -- who I know - who is wiling to pay this unlicensed person half of the procuring fee just to have some business!


Is this sleazy?

YES!

First, it never occurred to me that the "agent" actually would be willing to do this.  (He must be hard up for money.)
Second, why would an agent/broker even want to be inserted into any ongoing negotiation post the listing agent procuring the Buyer. (This doesn't make any sense.)
Lastly, this Developer never mentioned "his broker" until the terms of the deal were set and I was drafting the contract.

Now, the Seller does NOT need to sell! (It would be a different scenario if that was the case.) And, the original sales terms have been altered from the Seller's original terms and I have a feeling (knowing the Seller for as long as I have) he is most likely NOT going to accept.

We'll see what happens.

(My wife suggested I report this to the NV RED because I know that the Developer wants and probably will get half of the procuring fee IF I go along with his sleazy deed.

If you are searching for an honest CRE Broker...

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

Tuesday, May 5, 2020

Sleazy Real Estate Agents

Late last night, I received a call from a residential agent asking about one of my motel listings.

She and her husband are a Residential Real Estate Team here in Las Vegas.

Not surprised that a residential agent would call.  That happens a lot because residential agents think that selling a Commercial Real Estate (CRE) property will add to their mystic.  (It doesn't.)

Anyway, this morning, The "wife" emails me that they have a cash buyer interested in acquiring a small motel.  I have one listed.

I call the Owner's Property Manager (PM) and set up a tour.

As I was working on other "things," I suddenly get a text from the PM saying that a Buyer and agent are at the property asking questions.  (Now, PM and myself are the only ones authorized by the Owner to answer For Sale questions.)

Fortunately, the PM was at the motel in question and did answer property questions during the tour.
Then, they suddenly left.

In the meantime, I am calling the "wife" and asked what was going on?
She said their tour was ahead of schedule and thought just going to the property to walk around was okay. (It's NOT!)

I told her that, that was unacceptable and unprofessional behavior.  If she had been in real estate any length of time, she would know this.

FYI: If you make a schedule to tour a real estate property, and you are early, you call the listing agent to let them know you are early.  They didn't call.  I had to call them after the PM found them wandering the property and asked what they were doing?

So, if you have agents that are that lacking in management skills, you may NOT want to work with them.

The PM did say the Buyer acted as if he was offended by the condition of the property.  He's a bottom feeder and I am truly sick of them.

The property is Value Add and does need work and is priced for that reason.

More as the Corona virus, COVID-19, rampages through the US.

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!

Wednesday, April 29, 2020

Value Add Non-Gaming Las Vegas Area Motels For Sale

Are you interested in earning a 15.5% Cap Rate/ROI by owning three Las Vegas Area Motels?

If you contact me right away, I will send you the property details for each.

It's a total of 98 units from three separate motel properties in and around Downtown Las Vegas.

They earned +/-$859,000 Net in 2019.

Casa Blanca Motel
The Economy Motel
The Starlite Motel
For further information on each or altogether...

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!

Wednesday, April 22, 2020

How to Screw up a Commercial Real Estate Escrow!

The corona-virus hasn't been the only thing effecting me the past 22 days.
(I am NOT infected by the virus! It has been one of many things going on around me that have had an effect on me -- like it has on so many others.)

With that said: the escrow that was canceled by the Buyer the day before Close, is still swarming around with accusations now by the Procuring Broker of being screwed; and accusations of me and the Seller screwing the Buyer, and these are from the Procuring Broker.

This accusation has become more nauseating than the Virus! (Okay, since I don't have the virus, this is an exaggeration.)

Let me explain: Recently, the Procuring Broker accused me of trying to "Sideline" his firm from any commission due to him because his client canceled escrow.

Essentially, he is accusing me of trying to screw him.

Potential Screw Job?
That's NOT true given that one of the partners in the Buying Entity is a local real estate agent who is with another firm.  That agent has made direct contact with me and continued to do so even after I told him to keep the procuring broker involved. (He didn't).

So, when I emailed this Partner, I also cc the broker and agent involved to keep them in the loop.

Yet, apparently, the Broker doesn't keep up with his email correspondence. (That's another story.)

Anyway, when a Buyer cancels an escrow the day before closing, it is a reminder that there are a lot of Buyers out there that lie.  This Buyer claimed to be qualified to buy ALL CASH, yet never had the money to close.  It also puts into focus his Proof of Funds that he presented claiming he had the ability to close. (What happened to it?)

My suspicion is, and has been, he was trying to "flip" the properties. And, his up escrow/sale canceled on him.  Now, he is trying to get his $275,000 EMD back which he is NOT entitled to per the Purchase Agreement he signed.

Since I do my best to be diligent and honest, if you are a Buyer who lies and pretends you are more than you are not, please do NOT contact me.

If you are a Buyer who is serious about acquiring a Nevada CRE Property...(and don't like screwing or being screwed)...but like being treated in an honest and forthright manner...

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

Wednesday, April 8, 2020

Small Las Vegas Casino For Sale!

The Owner of a Small Las Vegas Casino with 45 rooms just told me he's interested in Selling.
He said he will NOT List with any Broker, but if I bring him a ready, willing and capable buyer, he will compensate me.

So, if you can acquire an Unlimited Gaming Casino at $30 Million, contact me right away.

Las Vegas, NV

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, April 6, 2020

Corona Virus is NOT a Reason to Cancel Escrow at the Last Minute!

The Downtown Las Vegas Motels that were in escrow suddenly canceled last Monday -- the day before the escrow was supposed to close.

The Seller is very, very upset because the Buyer had run through all of his contingencies and at the last minute he claimed he couldn't get financing, thus he emailed a Termination Letter to escrow demanding his $275,000 Earnest Money Deposit (EMD) returned.

Per usual, he is claiming the Corona Virus and the US Travel Ban are to blame -- thus he can NOT close.


BULLSHIT!

First: his Due Diligence passed and he had no problem with all that was disclosed to him about the three motels. (Yes, he knew they are Value Add and the Buyer accepted that fact.)

Second: At the last minute, he claimed his bank refused to finance the transaction.  Unfortunately, he claimed from the very beginning he was a Cash Buyer, thus he did NOT have a Financing Contingency in his contract.

My Attorney Friend (who I used to play golf with every week) said that just because there is a Pandemic and a Travel ban, those items are NOT in the contract, thus the EMD rightfully belongs to the Seller.

That is in the contract!

Besides, the Buyer's Up Buyer canceled on him leaving him high and dry.  That's NOT the Seller's fault!

In the meantime, the Attorney is going to respond to the Termination Letter and said we'll see where that takes us.

So, are you looking for a (Non Gaming) Downtown Las Vegas Motel that can be acquired at about a 15% Cap Rate?

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, March 28, 2020

The Assignment has NOT been Received!

In almost 30 years of being a Real Estate Broker, this has happened to me less than a half-dozen times.
However, as of yesterday, this is the first time it happened within three days of closing escrow!

I have had the three Downtown Las Vegas Motels in escrow four times now.

In my attempt to ward off would be flippers, I have been diligent to overly vet prospective buyers.
Most approach as buyers interested in acquiring value add, net income properties that they can fix and operate.

However, I didn't see this one coming because the "Buyer" has acquired several properties in Downtown Las Vegas that he bought, fixed, and operates.

So, when all of the Buyer's contingencies expired, he suddenly wants to cancel the escrow -- and receive 100% of his Earnest Money Deposit (EMD) back!
WHAT?!

The Seller was just as surprised, too!  And, since the Buyer threatened to sue to get his EMD, the Seller sought his attorney's advice; and his attorney says the EMD belongs to the Seller.

Then, while discussing the situation with the Escrow-holder, she lets out that she had been waiting for the Assignment of the Escrow.
WHAT?!
Assignment of  Escrow
She tells me that the Buyer's assignment of the escrow has NOT been received.  I was stunned. Apparently, this Buyer either didn't have the funds to close (As he assured me); or his flip Buyer pulled out of the deal at the last minute.
(I think the latter.)

Now, the Buyer either has to close, or he loses his $275,000.00 EMD.

At this point, we shall proceed with caution.

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, March 19, 2020

SHUTDOWN!

Real Estate is a business that requires a lot in personal interaction.  Granted, most of it is on the telephone and through other electronic communicating, but it is still a personal relationship business.

Yet, truly it is a non-essential business -- except when you have an escrow that needs to close within the shutdown period.


Sigh!

Buyer wants to extend closing because he is restricted from re-entering the US; and Seller's attorney says close right away.

Somehow, as the Real Estate Broker in the transaction, I am stuck between a rock and a hard place.
(Boy do I feel squeezed.)

What to do? What to do?

Keep moving forward.

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, March 5, 2020

Taverna Costera -- A WHL Designed Restaurant!

Rarely do I ever mention my wife's design firm.

I really should mention her firm more because her team does amazing work.

Here is the latest from Carol, Larry and crew!

Vegas Eater Taverna Costra Story

Magnificent!
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, February 10, 2020

Multi Family Plex Properties For Sale in Downtown Las Vegas!

If you have been searching for a smaller Value Add Las Vegas Investment to get started -- or, you have a limit on your available funds, there are 5 small multifamily real estate properties that are available in Downtown Las Vegas!

They are each in the $300,000 range - if bought individually; OR, you could acquire all 5 for $1.5 Million.

621 & 625 N 11th Street

208 N 13th Street

1302 Stewart Ave

610 N 11th Street
Interested Buyers should...

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 31, 2020

Las Vegas Residential Portfolio For Sale!

Have you been searching for Single Family Homes to purchase as rental income?

Then, I have a portfolio of homes that are rental properties for you.

There are 11 homes and 1 Condo in this portfolio.  You can acquire One or all Twelve.  It's up to you.

1189 Balzar Ave
1392 Hart Ave
2060 La Salle Street
 
4420 Shalimar Ave

4562 Baby Bird Lane

4604 Van Buren Ave
4608 Van Buren Ave


5151 Paradise Valley Ave

7078 Burcot Ave C-14 (Condo)

2160 Clancy Street

























3019 Asante Cove Street


















1913 Wild Jan Drive










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 25, 2020

Sports Loving Investors - A Long Term Leased Sports Bar is available for your review!

Hey!

Sports Loving Investors!  There are two Las Vegas Sports Bars For Sale!

Football is back in full swing!  And, the Super Bowl is just around the corner!

With that said, these are fabulous opportunities for the correct Sports Loving enthusiast to acquire a perfect Net Leased Investment Property where local Las Vegans go to wet their whistles and make friendly wagers on the games right inside of the bar!



That's right!  These Sports Bars have sports wagering kiosks that can accept wagers on the game right at the bar location without having to go to a major resort to place a bet at a sports book!

And, these are located in these particular sports bars because of the credibility of the Tenant which is a National Credit Tenant who has a Corporate Guarantee on their lease!

These two can be acquired together or individually.  Both have a Net Leased Income of more than $20,000 per month!

AND, there is basically zero Landlord responsibility!

The Tenant pays for the building maintenance, the building's Real Estate Taxes, and Insurance on top of their  annual rent!

So, don't wait!  The long term leases and tenant financials are available.  But, I will only let those qualified get to see them.  In order to get qualified, you need to 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!

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!