Showing posts with label Entertainment. Show all posts
Showing posts with label Entertainment. Show all posts

Tuesday, November 12, 2019

When a Buyer needs a Seller Carry Back, the Property is being Flipped!

You spend a lot of time exerting a lot of effort marketing a property for sale.  Then, you run into a Buyer who claims (says) you don't need to work so hard. 

They're easy.  They have all cash and can close real fast!

You think your efforts are finally paying off!

Phew!  That was .... Wait!

That was too easy....

And, so it goes.  You work so hard to get a fair market value offer for a property listing, and then, all of the sudden, along comes a Buyer with cash. (So, they say.)  You think your effort has finally come to fruition?  Or, has it?

This is a scenario I have run into for a long time since I obtained the Listing on several Las Vegas Properties.  I worked my marketing magic as best I can; and, then out of the blue comes a Buyer (a Flipper), who presents themselves as the key to my success.

(They claim) They are an ALL CASH Buyer who can close easily and quickly -- if the Seller can carry back a 2nd for six months to a year.

Sound familiar?

I've heard this a lot in the last year or so.  It's become so redundant, I can recite their pitch in my sleep.

The Seller, who I have known for a long, long time, is a well educated property owner with a lot of experience in owning, buying and selling real estate.

And, yes.  He buys low and sells high.  (That's the Golden Rule of Real Estate.)

So, when he told me he will NOT carry back a loan, I knew, right from the beginning, he knew the secret of a Flipper.  That is because he's a Flipper, too!

But, since I've known him, he's always been the real ALL CASH Buyer type that does pay ALL CASH and he does closes quickly. (Less than 30 days).

He isn't a Buyer who tries to get a carry back from a seller.  He pays cash, fixes the property's problems, then re-sells.

Moral of the story, if you are a flipper, and you want to steal equity, you need to do it quietly, quickly and move on to the next property in a blink of the eye.  To do that requires ALL CASH. 

Get in.  Close.  Then, Get Out.

Carry backs only keep the Seller's interest in a property.  It allows the Seller to keep an eye on what you are doing.  And, that creates the problem.  Once the Seller knows you are stealing their equity, that's when the Buyer's problems begin. 

And ALL of Your Efforts were for not.

Moral of the Story, I will keep marketing and putting my effort into finding a Buyer who wants to own the property rather than someone just looking for a flip.

It really does matter.

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, October 25, 2019

Attention, Lowball, Bottom Feeders! Don't Bother!

Last week, while back in "Boston" where I grew up, the extended family gathered together to celebrate the passing of our mother.

She was a 90 year old spit fire.  (Okay, you get the picture.)

Anyway, after the wake and before the funeral, we went to her favorite spot and we each had our favorite drink in a toast to honor of her.

While there, my youngest brother, who is a Colonel in the US ARMY, and I were discussing local real estate events. (My Apologies.  I can't help myself.)

He had been a real estate agent for a short time years ago but could never make a go of it.  (Maybe because he was fully into being an Army Officer?)

Anyway, while discussing the multiple low-ball offers I get for my listings in Downtown Las Vegas, I was complaining that too many of these bottom feeders feel entitled to steal the Seller's equity value of a property listing.

During our discussion of this, he said, (paraphrasing) if you treat the low-balling Buyer seriously, maybe you could work a deal.

I knew then that he didn't understand how real estate works. 

I replied: Since I am the listing Broker, my fiduciary duty is to the Seller.  If a Buyer makes an offer too low, I am going to tell the Seller to reject the offer.

Now, several of these rejected low-ball buyers do return and try, and try again and again.
(It's as if they are masochist and want the punishment.)

Yet, the market value (per Comparable Sales) keeps going up, but their offers stay the same.

What did Einstein say: If you keep doing the same thing over and over, and expect a different result, you must be crazy or stupid?

For a fair, Las Vegas market value deal, you can...

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!

Sunday, October 13, 2019

No one else will offer $250,000 non refundable!

This Buyer is Correct!

The only type of Buyer who would ever offer a Non-Refundable Earnest Money Deposit -- non-refundable and released to the Seller upon the Opening of Escrow -- is a sleazy Buyer!

They are the type of Buyer who think they are smarter than the Seller; Think they are smarter than the average real estate agent, (okay, maybe they are correct about that); and, they try as hard as they can to steal the Seller's hard Earned Equity.

I have a vast amount of experience dealing with these types of Buyers.  No, I don't like dealing with them because they drain my battery.

They are a waste of time.  They keep pushing the scenario of just how little the subject property is worth; yet, if they owned it, they'd be pushing just how much the subject property is worth.

So, if a property is listed for sale with me, I do my best to maximize the selling price.  Do I lose a lot of Buyers because of it?  YES!

But rest assured, they are the Buyers you, as an owner of a Commercial Real Estate property, don't want to be dealing with.

However, as the Seller of any Nevada Commercial Real Estate Property, you can hire me to list the property at a fair market value, and I will 'Damn the trenches' to find you a qualified Buyer.

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, October 2, 2019

You ever get used to being lied to about Las Vegas Resorts?

About a year ago, I wrote a $900 Million 'Offer' for the Rio All-suites Hotel and Casino.  That investor needed more time to put together the acquisition money than Caesars was willing to wait.  So, it went no where.

Now, the reason the Offer I wrote was so high in price was because the land value of the 88.53 Acres which the Rio sits on his worth about $11 Million an acre.  Thus, the $900 Million offer.

After that offer fell apart, Eldorado Resorts came along with their attempt to acquire ALL of Caesars in their stock deal.  At this time, I was told by my contact at Caesars that the sale of the Rio was being put on hold until Eldorado completed their acquisition.


Ok, makes sense.  Let's wait.  (I should never have waited.)

Then, a few months later, I was shocked to read that Caesars Sold the Rio at about half of the land value for the whole property!

Even to today, I am flummoxed as to the reason they moved forward on such a low ball offer.

Now, the Rio buildings and such were the victim of the lack of Preventive Maintenance.  Before and during Caesar's Bankruptcy, they did little if anything to cure items that could have easily been fix, replaced and of in general taken care of.

Thus, the dire state of the existing structure. (As one retired casino executive said to me one time, "Duct tape on the carpet is NOT a repair."

So, all I can do now, is hope that the current buyer, who is in escrow, doesn't close and I find an equally qualified buyer to close on the property.

Are there other resorts available?  Yes. 
Are they expensive?  Yes.
Are there hotels/motels available without gaming?  Yes.

To find out more....

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!

Tuesday, September 24, 2019

RIO SOLD! OK, It's just in Escrow.

For about 10 years (maybe more) Caesars was trying to sell the Rio All-Suites Hotel Casino.

For ten years (maybe more), I did my best to find them a buyer.

Well, looks like I failed.

But, given parameters that were NOT held up by the Buyer in the final outcome, I don't feel like a failure.



You see, it was Caesar's decision to undersell the Rio.

When I was trying to sell this property, I was told that $1 Billion or more was the sales price.  well, I took that as the God's Truth since most 'Strip' properties sell in the $10 Million an acre range.

But, I do know that there is one buyer who must feel completely used for way over paying for a dilapidated resort that is NOT even functional.

(He paid $600 million for a property he will need to invest almost a Billion into to complete it.)



Then, again, the Rio will need probably a Billion to fix/repair from the way Caesar's ran it into the ground during their tenure as owner.

Oh, well!

Another day, another dollar.

If interested in a Las Vegas Resort; OR, if you are interested in any type of Las Vegas investment...

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, September 19, 2019

Three Las Vegas Motels For Sale!

If you have been considering entering the Las Vegas Motel Market, here's your chance.

You can acquire all (or individually) three separate non-branded Motels at a +/-12% Cap Rate!

That's a steal as far as I can tell!

Two of the Three are located within the "Opportunity Zone" which enables you to get a tax break for redeveloping these properties.

The Economy Motel

The Starlite Motel

The Casa Blanca Motel

Each Property is in a Value Added state and the right person with enough ambition can turn these into branded motels; OR, just keep operating them as they are.

They are earning a total Net Income of +/-$903,066 annually!

For further property details...

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!

Wednesday, September 11, 2019

Just received an alert about your listings!

Okay!  That's great!  Who sent you the alert?

Deal Stream!

Who?

www.dealstream.com!

Wait, what?  I don't subscribe to that web site....

And, so, it happens.  Someone is advertising my listings on another web site.

Should I be angry?  Sad?  Or, happy someone sleazy is trying to sell my listing to another buyer without my consent?

Now, I know the values of these properties.
The Seller knows the values of these properties, too!

If they think they can acquire them so low that they are flip-able, they're wasting their money.

You see, the Seller is very knowledgeable about Las Vegas real estate; thus so am I.

If we get an offer at or about the Seller's selling price, then, SOLD!
But, I can tell you this.

The flipper isn't going to make as much money as they envision.

But, sure, Go ahead!

Market my property for me.  It saves me time and money!

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, September 4, 2019

SOLD! Okay, Not SOLD. But, they keep saying SOLD!

Have you ever been told a lie and you know it's a lie, but the person telling the lie insist it's the truth!

Recently, a (not so major) resort Sold in Las Vegas.  But, as far as I can tell, it didn't sell.

Okay, I am NOT going to identify the property.  Let's see if you can guess.

A small resort property announced a sale and when I investigated, I found that, that wasn't quite true.

But, the news media keeps hawking the Sold news as if it was something major.

In my investigation of this sale, the ownership name changed, but it remained the same, even though it is going to be occupied by a "New Tenant."

Everyone involved from owner to tenant were in the news saying the right things about this new (supposed) ownership of the property.

The only thing I knew was new was the tenant taking occupancy.  The old ownership still owns but under a different name.

The old ownership executives are the new owner executives.  Yet, the tenant is new.

See how this becomes confusing.  Sort of like listening to a liar who lies and then re-listening to the people who were lied to and they are repeating the lie, yet no matter how much emphasis the new liars try, the lie is a lie.

And, unfortunately, since you know the truth, it becomes exhausting trying to correct the lie.

So, to NOT be lied to... why not contact me.

I will tell you the truth regardless of whether you believe me or not.

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, August 26, 2019

Peaceful Morning in Las Vegas!

As a Real Estate Broker, I do my best to be a professional.  There are times I know that my words and actions can be taken out of context.

Yet, I strive on toward helping those that want my help.

And, every now and then, I learn "things" that shake me to the core.  Just recently, I found out that a "new" client, who told me he had just drove by several properties in actuality did make contact with another broker about a building he has listed.

(If you don't understand why that is a bad thing, I will explain. If you are a buyer and you contact a listing broker about that property, if you bring me into the situation after making the contact, YOU, as the Buyer, are now responsible to compensate me. Since you directly contacted the Listing agent, you made them the procuring cause of a sale.  Thus, they do NOT have to split any commission with me.)

So, I know a lot of you novice real estate Buyers don't understand this concept. But, if you venture out into the real estate world, make contact with a listing real estate broker or agent about a property with their sign on it, bringing in an agent post that contact, you are responsible for compensating the agent.

Any questions?

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, August 16, 2019

You are going to have to forgive me!

Just read a news story about a Las Vegas real estate agent who recently died.

He worked at a prominent real estate company; and, he was known for doing large real estate deals.

My apology is for what I am about to say because I was NOT a fan.

When it comes to real estate, you need to be courteous and thoughtful toward others.  When you are a bully and you think you are better than all the rest, to me, you are nothing more than a weak, weak person.

My first interaction with this bully was years ago.  Thankfully, in the 20 years since we first met, I did my best to stay away from him. Years ago he did his best to bully me.  I bullied him right back.

Sorry, when you attempt to invalidate me; I fight back.  I hate bullies.

Anyway, the last email he sent me, months ago, was another attempt at bullying.  Apparently, he never learned his lesson.

This time, I had heard through the grapevine that he was dying, so I ignored the email and went on with my business.

Anyway, I am so, so happy he thought going to the doctor was a waste of time.  I am so glad that he's no longer sucking up precious oxygen.  And, he was a year younger than me.

(PST! I go to the doctor twice a year whether I need to or not. So, I am still healthy & (hopefully) wise!  Only time will tell.)

Does that make me a bad person?

It's okay if you think I'm bad.  You are just going to have to forgive me, regardless.

Either way, I don't care if you think I'm bad or not.

My clients know I am good, thoughtful and courteous.

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, August 2, 2019

Algebra! It's my curse!

The odd thing about this is, my Dad was an electrical engineer; thus, algebra was easy for him.
My wife, also, understands algebra.  She uses it everyday at her commercial interior design firm.

I even have an uncle who has a phd from HAAV-VAARD who I know and understands algebra, too!

But, most of you, are probably just like me.  Algebra is the foreign language -- much like currency exchange -- where you go: Huh?!.

I bring this up because, unlike (most of) you, I work in Commercial Real Estate (CRE).

I like to think, I am (supposedly) good at it.  My job requires me to dig up sellers and buyers; put them together through a real estate contract; and then hopefully, they exchange a property for a cash value!

Every one's happy, right?

What most people don't see -- nor will you understand -- is the amount of time spent just digging.

Most Sellers don't trust real estate agents; and most Buyers don't trust real estate agents, either.

So, getting one or both sides of this equation to trust you requires me to do a lot of algebra!

One day, I will probably understand the how I was able to get to the there! The combining of the elements to complete a transaction.  But, for now, I am not going to just sit around waiting for a Buyer or Seller to just show up at my door.  It's because the answer to all CRE completed transactions is and always will be algebra to me!

Anyway, in my nearly 30 year career, if you are interested in pursuing a Navada CRE property. Whether it is a Las Vegas Resort Casino Hotel opportunity, or a simple everyday Income producing commercial property, all you need to do is realize there's one broker in Nevada who does have a reputation for being (too) honest with clients.

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, June 28, 2019

When I get ready to Sell, you are my Broker!

On a 33 minute phone call this AM, a Land Owner here in Las Vegas was filling me in on his plans once one of the land parcels he owns sells.

And, during that call, while discussing the situation about the land and the ground leases he has on it, I casually (I thought it was casual) mentioned he should "list" the land with me so I can begin marketing it for him.

I wasn't ready for his reaction.  It wasn't a bad reaction, it's I forgot one of my main rules.

When discussing real estate with a client, pull don't push. (I don't have them numbered like Gibbs of NCIS!)

So, the suggestion didn't land well.  OR, it was taken (slightly) out of context.

He said he wasn't ready. (Which I knew.)
He said he hadn't pre-planned the up swing of selling, yet. (Which I knew.)
And, "He had to get his "shit" off the land so it could be ready to sell." (He thinks that will take a couple of months.)

Vegas Vicky has nothing to do with the post, but I thought it interesting.

Now, he did disclose his up swing (his words) and that shall remain between him and me.

He's a smart man, ran a large company supplying equipment to developers, and made millions through the years.

Anyway, after he (I think it was politely) chewed me out for pushing him, he said you are the best broker I have ever dealt with.

He said, he liked me from the first day we met because I was an honest broker and he has been involved with a lot of brokers who are more concerned about their commission checks than what's best for the client.

I said, Thank You! Adding, I was just thinking out loud about what we could do to market your land.

He then said, "Don't worry.  When I am ready to Sell, you are my Broker!"

Phew!

Since the middle of last summer, when I first approached him, I was weary about him given he is an old, old Las Vegas (local) resident.

When I first moved to Las Vegas, an existing Broker I interviewed, said, "Don't treat the locals as if they are country bumpkins.  It will come back to bite you later on."

He added, "They know what they are doing and treat them as if they are smarter than you."
I've taken that advice seriously.

With that having transpired, I will wait my turn to help him Sell his M-1 Land.

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, June 18, 2019

The Low Ball Express of Downtown Las Vegas Motels!

For more than a year, I have had four Downtown Las Vegas properties listed for sale.
They are three motels; and, one is a studio apartment building.

They range in price from $1.5 Million to $3.2 Million.  And all are priced to sell.

The problem is one property has garnered most of the inquiries.  (More than 7,000 inquiries!)
Yet, every investor I've spoken to has claimed they are cash buyers, can close quickly, and they are looking for a deal.

Then, when I offer them a deal, they immediately start demanding a steal.

One investor from Northern California said she'd wouldn't pay $1 Million for the most sought after property.

My reaction?  Okay.  Thank you for wasting my time!

Here are the properties that can be acquired individually or altogether.

Alpine Motel Apartments
213 N 9th Street
Comparable Sales indicate an "As Is" Market Value of $2.9 Million

Casa Blanca Motel
2401 N Las Vegas Blvd
Selling Price: $3.2 Million!
The Economy Motel
1605 Fremont Street
Selling Price: $1.5 Million!
Starlite Motel
1873 N Las Vegas Blvd
Selling Price: $2.5 Million!
AND, all four can be acquired together as a portfolio for $10 Million or at a 10.969% Cap Rate.

For property details, email me!

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 3, 2019

Stealing an Owner's Equity

It's NOT illegal.

Just wanted to say that at the top.

But, I think it should be given that when an agent buys an Owner's property at way under it's value, there should be some form of punishment for the agent when they do that.

Because, basically, even though its NOT illegal to buy a property way under market value, I think its unethical -- especially if you are a real estate professional.

Essentially, all this is, is you are stealing the Owner's equity.

Now, investors who buy and sell real estate  (also known as flippers) want to do this on every transaction.  They think it's their duty to steal the equity for their own profit.

Alpine Motel Apartments

Currently, I am dealing with an apartment building listing I have in Downtown Las Vegas.  I get at least one inquiry a day on it by Investors who can "take this property off my client's hands."

What these investors don't realize, is the owner is also an investor at the same time he is an operator.
So, he isn't in need of having the property taken off his hands.

And that's the rub.  Since housing is in short supply in this area of Downtown Las Vegas, this property -- even though it's in need of renovation -- is mostly full all of the time.
Yet, they keep trying.  They keep making offers to buy low and flip.

But, since I know it's my fiduciary responsibility to protect my client, I tell ALL of these investors that the only way they get this property at a steal is to buy all four of the properties in a portfolio my client owns.

Interested in netting about $1.1 Million a year?
Email me.

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 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!

Friday, April 26, 2019

Invalidation doesn't work

Very recently, a so called prominent Las Vegas Real Estate agent and I were working on a large Resort property sale.

My Buyer has already made accepted offers on three of my listings.

We were discussing the potential sale of a Resort property when my Buyer asked me if I would find out if some conditions of a potential offer for the Resort property would be acceptable to the Seller IF he included them in an offer.

Being the customer's always right type of Real Estate Broker, I said I would ask, but I told him that O didn't think they would accept what he was proposing. BUT, he insisted that I ask.  So, I sent an email to the Seller and Seller's Rep with an outline of what the potential Buyer wanted to offer.

The Seller replied quickly with a firm, "No."

Okay!  I passed that response on to the Potential Buyer.

A short time later, the Seller's Rep sends me a reply -- just to me -- with the simple question: "Do you have a Nevada Real Estate license?"

Now, I know who this agent is.  And as far as I am concerned, he's an ASS!  (I capitalized it because he truly is a big ASS!  And, if I mention his name to any other CRE agent or broker in Las Vegas, they will usually sum him up also as an ASS!)

And, I know all of you know someone who is like this.  They are the big boy/girl on campus and if you don't measure up to the way they think you should be, they treat you badly.

Well, I didn't respond to his invalidation because I know all about this ASS!  Just because you think you are better than others, doesn't mean you are.

And, unfortunately, for him, I am the type that if I am bullied, I bully back.  And, even if he turns around and says he was only joking, we don't know each other well enough to be on friendly terms.

Just so you know: Tough love doesn't work.  It's just a form of bullying.

In the weeks.months ahead, we'll see what transpires about this transaction.

But, I plan to stay the course.

In the meantime, if you are interested in any Las Vegas CRE Property -- even a Resort one...

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!