Trump: Flimflam man?

A few months ago, I did an Internet search for businessmen who became presidents.  Some were senators and congressmen before becoming president.

But, these supposed businessmen who were elected president had one thing in common: They were all in the lower half when ranking them as successful presidents.  (I think the highest was 26.)
Anyway, on the opposite end were the successful Presidents.  These men all had one thing in common: they were failed businessmen.

And, by far the most successful president ever was even considered a failed lawyer.
Go figure. (Or, Google this yourself to verify.)

Now, as for Trump's "Successful" Las Vegas Tower.  People may look at it and wonder how this became so successful.

Well, it was headed into foreclosure in 2010-11.  How do I know this?  Well at that time, a Los Angeles real estate investor client, called me to ask if I could do him a favor and get him quality comps for the Las Vegas Strip condos.

I asked, 'Why?"  (The reason I asked is because I don't sell residential real estate -- at least not individual properties.)

Anyway, he told me that the bank holding the note had contacted him to see if he'd be interested in acquiring the loan.

(Now, this is not unheard of since lenders do this all the time. (It's one of the factors that led Wall Street into their collapse in 2008.))

Anyway, I got the condo comps and sent it to him.

He decided to NOT purchase the loan because, upon receiving the comps, he knew the bank was asking way too much per unit for him.

Later, when talking to this very same investor about another property, I asked what had happen to that loan.

He said that he was told by the bank that Phil Ruffin had paid it off.

(Apparently, Phil still owned the land separate from the tower and wasn't going to chance losing his investment in the land to the bank foreclosing on the tower when the condos didn't sell.)

So, if Phil didn't mention this as a Trump success at the Republican Convention, I guess Phil would know first hand.

Lastly, I doubled checked the ownership on this property recently and most of the units are currently owned by Hilton Vacation Timeshares.  Phil sold the remaining unsold condos to them after he had started to use this building as a timeshare component of his TI Resort Property.

So, if Trump is heard talking about how successful his Las Vegas Tower has been, remember, here is another building with the Trump name on it where he only owns the condos on the 33rd floor.

I guess getting your name on a building you no longer own is something to brag about.

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

Las Vegas CRE with +/-8% Cap Rates are NOT selling! Why?

You know, I believe that anything is possible.  I think it's the optimist in me.  So, when the economy turns and I see deals starting to come along, and they turn to steals, this is when I believe that I can help any investor buy any Las Vegas investment property.

However, the problem I am having today is kind of complicated.

You see, there is an election going on in the US and both candidates are either well liked; or hated.

The sad thing about this is -- since I am subscribed to several property listing services -- I am being barraged with other CRE company's emails claiming that they have SOLD property in surrounding states at such a high price (or low Cap Rate) that right here in Las Vegas, Sellers are struggling to even attract investor's attention at +8% Cap Rates!

I am, after all, more than willing to help a Seller get as much money for their property as long as the Buyer is willing to accept the Seller's price as a great deal (maybe a steal) from acquiring a real estate property.

What confuses me more than anything else is that our +8% Cap Rates are a steal!

Especially when a McDonald's in Southern California sells for a 3.54% Cap Rate!!  OR, a Walgreen's in Arizona Sells for a 5.33% Cap Rate!

I find this not only confusing, BUT unbelievable!  Why would an investor buy such a property at such a high price -- just because it is located in another state?

IF you are NOT one of these investors, or you are and are now just realizing your mistake, please send me an email and I will gladly send you the latest on the better than average CRE properties that are currently available.

I appreciate your support.

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

'You hook them by selling the dream..." former employer selling a get rich quick scheme

Years and years ago, while I was living and working in Los Angeles, CA I worked (very shortly) for a person who was selling success!

Yes, I was young and fell into the trap of getting rich quickly, but I got out just as fast before I invested any money in his scheme. (Good thing for me: I didn't have any.)

Anyway, I saw this today on CNN about democrats living and working in Youngstown, Ohio who have fallen for Trump's scheme.  You know, the one about how he is going to fix the numerous problems that Americans currently have: lack of jobs; desperate about what is in their future.  You know the routine.

While watching this on the Internet, I immediately thought back to the old saying spouted by a person who I shortly worked for.

"You hook them by selling the dream that they can make it rich.  You and I know that most are never, ever going to be rich, but that's what you sell them."

(After realizing the impossibility of his scheme, I exited his employ to his invalidating harassment for a few months that followed.)

And, that's how I felt for these people that were interviewed in this news piece.  They are desperate and are searching for a quick answer to their daily problems.

http://www.cnn.com/2016/07/18/politics/cleveland-youngstown-ohio-democrats-republicans-political-anthropology/index.html

You see, this town lost their steel industry, and they fully believe that Donald Trump is going to bring that back to Youngstown, OH.

Now, every sane person does realize that as long as the corporate CEO's are making more money by having their industry in a country where they don't care about their environment, that is never going to happen.

What these people -- who have been suckered into thinking this impossible dream -- don't realize, is that Americans are NOT going to work for the low, low wages being offered and accepted in China.

Unfortunately, these middle-aged white people long for a former "better day" where jobs were just down the street. You know just before the steel factory that was ordered by the EPA to stop polluting.

Okay, says the CEO, off to China we go!  (Hey! They stopped polluting!  Well, they stopped polluting here in the US anyway.)

Lastly, the jobs are going to stay in China regardless of who wins the election to occupy The White House.

The reason: Americans want and will always demand clean, drinkable water; clean, breathable air, and to be able to eat non-contaminated food.

And, they will demand to earn a livable wage -- which is higher than what the CEO's are willing to pay.

So, Trump's selling a dream that he will never, ever be able to deliver -- but that is what is most important: Hook them by selling the dream.

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

No matter who wins the US Presidency, there are good deals in Las Vegas CRE today!

With the US Presidency up for grabs (I truly didn't think Trump would make it this far), there are still a few very good buys in Las Vegas as we sit here today.

However, several out of country "Buyers" keep telling me they want to wait to see "what happens" come November.

It's as if they could care less whether they get a deal on a property or not.  No matter what I recommend on these properties -- they have a horrendous need to wait and see if the US General election voters will pass their litmus test.

Yes, they fear a Trump Presidency.

If I had the money, I would have already bought all of these properties, because I know regardless of who wins, the deal will be in the re-selling of the properties to these very same procrastinators.

So, right now, these Buyers are like, ugh! Trump may win the presidency, Oh, God, No!

But, since I recommend that you buy now while these properties are still at a good price; the buyers  would rather wait to see who wins the presidency to acquire that very same property!  Which will be at a higher price regardless whether Trump or Hillary win!

SO, all you Buyers, you are just killing any chance at acquiring a good property at a good price/deal.

Now, I will tell you all of the STEALS are gone! That window closed a few years ago!

However, the good deals that I am talking about could make you money over the short term (5 years) AND long term (10+years).  You just have to have faith in the future of Las Vegas -- which is still growing!  So, forget about the US presidential race.

Whoever wins, is going to be hated by 50% of the electorate anyway.  And, I have no control over that scenario at all.

So, if you are a serious Real Estate Investor -- looking for a Good Deal -- take the time to please give me a call; and stop worrying about Trump's ignorant arrogance; or whether Hillary's (alleged) criminal activity will hurt you or her.

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

Real Estate Mortgage Payoff -- Part III (Sigh!)

Ok.

Now for the finale.

I was finally able to speak to an Account Manager at Shellpoint.

She told me that Shellpoint was only loan servicing my loan from PNC.  So, the PNC people I had spoken to lied to me. (Not surprised.)

Anyway, she said the only discount I could receive was 10% -- and I'd have to qualify for that.  I thought that I could do better.

So, with that done, I called my client/friend, who does loan buying and selling, and foreclosing.  A few days later, he called back.

What he told me should NOT have surprised me; but it did.  And, I now have a fuller understanding of this parade of loan/debt buying that I didn't before.

My client/friend told me that the amount of my loan was actually pittance. It is not near enough for him to go near.

He said that if I want to pay the loan off, write them a check for the full amount.  He did say I could take a chance and write a check for 90%, but he asked: Is losing your home over $3,800 +/- worth it?

He knows, I know, it's not.

He said that the lender is fully aware of my house' value. They know I have equity, and if I try to play the game, they will take the house through foreclosure and I'd be out of everything.

He suggested that I don't do that.  'Pay them off and move on,' he said.
'At least you'd have a home free and clear' --  which is a rarity these days.

So, I learnt my lesson. Whether I think it fair or not, paying them what I owe and moving on is my only option.

Now, if only I can convince Donald Trump to stand down....maybe my foreign investors will get off the real estate buying fence...

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

Las Vegas Restaurant offered at an +/- 8.4% Cap Rate!

This may or may not be your cup of tea, but it is an investment worth a second look.

Popular China Star Restaurant located on Craig Road and very, very near a Wal-Mart Superstore.

Investment Summary:

Offering Price:                   $1,990,000

NOI:                                    $166,320

Cap Rate:                           8.36%

Lease Term Remaining:   10 Years (This is excellent for a free standing investment.)

Location:                            Very busy retail corridor in North Las Vegas, NV 89032

 Home Depot Anchored Shopping Center Pad

Sale Highlights

•             Safe & Secure Investment:  Tenant's been at this location since the property was built in 2007

•             NNN Lease (No Landlord Responsibilities!)

•             Over 10 years remaining on their initial lease term!

•             Home Depot Outparcel: Located in a very busy retail corridor/district

•             Adjacent to anchors: Home Depot, PetSmart, and Office Depot.

This has excellent exposure on high traffic Craig Road -- which is one of the busiest east/west

thoroughfares in the Las Vegas MSA.

Shopping Center has its own signalized intersection!

I Googled Earth this site, and there are major retailers in this area including Walgreen’s, Walmart, Target, as well as Home Depot and Office Depot.  Albertson’s is across the street.

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

Trump's Ignorance of International Trade Just Cost Me Another Potential Transaction!

It has become a theme that won't go away.

And the reason it won't go away is that most White middle-aged American Republicans are prime for Donald Trump's hateful, bullying rhetoric.

They swallow his message without even giving it a second thought.

For your information, China has NOT raped America!

China didn't twist any arms; China didn't even do anything illegal.  They just had a large pool of people willing to work cheaper than American workers were.

So, if anyone is to blame for China becoming the world leader in manufacturing, it is: wait for it: White, Middle-aged American Republicans!

Too close to home to place the blame?

Oh, well.  If Americans were more willing to work at less money, then the CEO's wouldn't have moved the jobs to China.

And, Congress is also responsible for this debacle.  They reduced the import tax/fees on goods manufactured outside the US.  This was done so White Middle-aged Americans could buy the cheaply made Chinese goods at low, low prices, too!

So, don't like China having all those Jobs?  Well, you know what you have to do to get them back, right?

Unfortunately, that is not going to happen.  Americans won't work for almost free.  And, Americans do care about the air they breathe -- even though they say they don't like the EPA regulations; and, obviously, they care about the water they drink; and the food they eat.

So, Mr Trump, insulting China is idiocy.  Bullying other presidential candidates can be viewed as one thing; but bullying an entire nation or a major religious faction is NOT presidential.

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

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

The Real Estate Mortgage Payoff!

Okay.

I am going to get a little too personal in this blog.  I try to NOT talk about myself here.  (There are so many other "things" that are way more interesting then me.)

It's not going to be TMI.  Since, I am not a celebrity or even a 'want-to-be,' there will be no naked pictures.  (My 60 year old body would break the camera.)

Anyway, I have a bone to pick with a mortgage servicing company.

My wife and I took out an Equity Line of Credit ten years ago just in case there were any exceedingly expensive expenses we may encounter during our home ownership stay.

Now that the initial ten years has passed, and our loan is now a 15/15 loan, we have decided to just pay it off.

But, since I deal with lots and lots of real estate investors -- some that I have talked to offered to buy my loan and then I could pay them off!

Sounds good, right?

Anyway, I know the trick to mortgages and since I did help one client to do just this, they have "owed" me ever since.

You see, I know that the mortgage servicing company that "took over my loan" actually "acquired"  my loan from Goldman Sachs "at a very steep discount."

Now, they are trying to convince me to make monthly payments to them for the full loan amount that we currently owe.

So, I said to myself: Self! Since this mortgage servicing company didn't pay full price when they acquired my loan, why don't I just offer them a reduced payoff?.  Then, they would just re-convey the loan to me!  Since they paid less than half of what I owe to buy my loan, I think it is more than fair that I pay them slightly more than what they paid and we can call it even.

Logical, right?!

The mortgage telephone lady said, "I couldn't do that" because "I owe almost $40,000.00."
I told her to have someone from their company who had the authority to say yes, call me.  Once agreed, I would set up a wire transfer between my bank and their bank and we could call it a day.

Hopefully, this works.

I will have to keep you posted.  No calls yet...

In the meantime, for more detailed information about Commercial Real Estate...

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

Is the Las Vegas CRE Market Going South?!

Had lunch with the retired gaming executive that I have come to know by living and working here in Las Vegas, NV.

At lunch, he said that he had heard that one of the national real estate firms located in Las Vegas, NV could be closing it's doors before the end of the year.

Now, he did say which one; but, for the sake of NOT spreading rumors -- at least until I can verify this information -- I will just let that simmer.

This information was told to him by an agent he knows that works at that very office.  And, she also said that they have only closed three sales or escrows this year since January, 2016.

And, because they are in the prestigious high end office with their monthly rent so high, the agent told him that she was leaving and was going to get out of the real estate business altogether.

Now, a day later, I attended a mixer that a major national bank held.  When I arrived -- fashionably late -- I saw that there were only maybe three or four CRE agents attending.  The rest were all bank employees from various divisions of the sponsoring bank.

As I was greeted by a bank employee I know, I asked her why the CRE agent/broker attendance was so poor?  She embarrassingly said something to the effect that most of the invitees (real estate agents/brokers) were to busy and didn't RSVP.

Oh, really, was my reply.

I then told her about the major CRE company that I had heard only closed three sales this year.  She replied, that she had heard that, too!

So, I wonder.  If a national real estate company -- given that it is a franchise -- can't close sales and maintain their office; I feel so lucky that I have been able to, that I should travel to Prim and stand in 110 degree heat to buy a lottery ticket.

Then, again, I would probably get mauled by a Polar Bear before acquiring the winning ticket. (That seems to be my luck.)

Anyway, I think I will stick to doing what I am doing, because what I do seems to still be able to put sales deals together and close escrows when needed.

And, if it is true that Las Vegas CRE is about to go south -- again -- then, you need to contact me now, so we can put together a game plan for moving forward once this 'new' recession hits us.

I am ready when you are...

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

Las Vegas: Profitable Nevada Ski Resort For Sale!

Within the past month, I have mentioned that I was trying to list a Nevada Ski Resort.
Well, the attorney for the owner wants to handle the sale, so I will let him.

This Ski Resort is NOT in the Las Vegas area!  However, it is within the state boundaries of Nevada and is one of the state's oldest and well run Ski Resorts!

I won't tell you much about it here but if you are interested and qualified, send me an email and I will reply with an Non Disclosure Agreement (NDA) -- so that no one will go around me on this.

The attorney handling this has set up a Data Room where all the property details are located.  To access the Data Room, you need to email the signed NDA back to me.

If you want to see the Ski Resorts' financials, you will have to prove to me and the attorney you are capable of closing a sale in the $65 Million range.  So, please include your financial capacity with your company signatory signed NDA to proceed.

Want further information?  That will take you sending me an email.

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

Spam, Spam, Spam, Spam, Spam, Spam, Spam! CRE Spam is making a comeback!

I like to think that I am one of those Real Estate Brokers who will keep you informed -- via email -- about a variety of Las Vegas CRE Properties that are For Sale.
 
And, even though these properties may NOT necessarily be within your acquisition criteria, I feel that notifying you about potential deals was way more important than just saying, "The heck with it. They don't want to know."

Well, my apologies upfront if I over stepped my bounds.

Now, as I blog this theme, there was a time -- like about 7 years ago -- that I blogged that I wasn't receiving anywhere near the amount of email Spam I had been receiving recently.  And, between, September, 2008 to even say July, 2010, I don't recall receiving any spam at all.

BUT, now I have noticed that my junk mail folder does receive quite a few more emails than I would like.  But, since it is Real Estate Spam from vendors, etc, the amount I am receiving is making a come back.

Some of you may be saying: But, David -- "You have been spamming me forever!"  And of course, I probably do still send you real estate alerts about a variety of Las Vegas CRE properties than you'd liked.  But, this is what my business requires me to do.  Which is why I am being up front with you so that the properties that I run across gain a wider audience of potential buyers.

So, instead of viewing the emails as Spam, why not view them as Alerts!  (Hey! Google has Alerts! Why can't I?)

And since these alerts are there just to make you aware of a potential CRE Deal, taking a few seconds to review an email just might be worth that time and effort.  Especially, AFTER you conclude that this property will fit your income needs, your long term investing needs, and it will help you support your family without having to open a wallet every time a family member asks for a hand out. (Was that mean?)

I get the sense that most -- if not all -- of you are genuinely okay with these emails because it gives you the inside tract as to what is available.

And, since there are fewer brokers and agents and fewer marketable properties, I need to stay as one of those Real Estate Brokers you come to count on for those alerts!

Anyway, I know you aren't a Buyer at this time.  However, since I do NOT know when an acquisition inspiration will strike you as being an important aspect of your life, I know that by providing you with a periodic email about a variety of properties can be important to you in the future.

Any questions about this?  Seriously, please just ask.  If you are interested in acquiring a Las Vegas CRE property, I will do my best to find it for you.  I can find that worthwhile CRE investment without breaking your bank.

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

"That's a lie! Realtor X said....!"

Talk about disrespect.

Why is it that some people who are supposed to be the closet to you; will treat you with utter disrespect?  You know who I am talking about: Family.

Is it Jealousy?
Are they really that envious of you because you are viewed as being more successful than they are??

Through the years, I have discovered that when certain family members ask me a real estate related question, the hair on the back of my neck feels funny.  So, I usually inquire to myself: Am I being set up?

And, the answer is sure to be: Yes!  Why, yes?  Because most of the time, that's what happens.

They will ask a question, like it's a simple I need to know some of your real estate knowledge type question; I will give an honest answer (why not, it's real estate and most of the time you can search it on the internet); and then, these ungrateful siblings will look at me with that stupid quizzical look in their eyes that say: you're lying!

And, I mean, they will come right out and say to me that I am 'Lying' to them!

What?  Why would I lie to you? I usually ask.
How do you know I am lying? is usually what I have to ask back.

Then, they reveal that they spoke with Mr/Mrs X (for a better nondescript person) and Mr X said -- and they will repeat the lie and announce that they believe it to be true.

I am left dumbfounded.  I usually ask myself just afterward, why?
And the answer is always: Because, there is no reason for me to lie to them.
Why would I?  I am NOT getting any monetary value from it.

It's so frustrating.  I need to learn and stay away from family completely.

This all falls back to my early days in real estate under the tutorial-age of Mike Sitren.

He was correct: One of his rules is and always will be: Don't help family with any real estate related problem; you will regret it.
He emphasized to me one time that: If the transaction goes well, they will assume the credit; if it goes bad, you will get the blame. It's a no-win situation, he said.

And, God Bless the long deceased man.  He is still correct 23 years beyond his departure from this earth.

So, if you are NOT related to me, please remember...

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

History shows businessmen make bad U.S. Presidents

Every once in a while, some one, somewhere comes up with the idea that the President of the United States should be a businessman.  Well, it's not anything new.

There have been several Presidents that have been businessmen; and as this article outlines, they have turned out to be some of the worst Presidents in the history of the US.

http://www.marketwatch.com/story/sorry-trump-past-businessman-did-poorly-as-presidents-2015-09-03

Now, when a businessmen runs for President of the United States, they usually stand on the platform of their business accomplishments.  They pontificate how they -- as a successful businessman -- can get "things" done.

What they forget is that in order to get anything done in Washington, D.C. or even passed by Congress is: you need tact and tenacity.

However, most businessmen have tenacity.  It's essential to their job.  But, the lack of tact is what usually dooms them as President.

A lot of my fellow real estate broker colleagues criticize Obama.  They think he has been the worst president ever.

But what I see is a man who has a tremendous amount of tact and tenacity.  Even if you disagree with Obama's politics, Obama did get things done -- even though he was slowed by a do nothing Congress.

And, that in itself was a helpful element to Obama's success.  The reason is, when Congress does nothing, the business environment is supposed to improve.  Obama did take over the office at one of the worst possible times.

The World economy was in a deep recession -- maybe even a depression. (I will let the economic scholars decide.)

But, even while being criticized heavily from both sides of every issue, Obama maintained his tact and tenacity.  He was able to accomplish more than I thought he would.

While searching the internet for businessmen that were elected US President, I found this article.   Here a retired military officer/physician did some research and points out that every businessman who was elected US President, turned out to be a bad President.

So, to see what I am talking about, please read this article.

http://thehill.com/blogs/congress-blog/presidential-campaign/262749-history-shows-businessmen-make-bad-presidents

(You may have to copy and paste the links in your browser to review.)

Read and enjoy.

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

Chinese Investors Pour Money Into U.S. Property

This is nothing new.  For several years now, I have heard this tune and it doesn't seem to be letting up.

And with Chinese Companies like Anbang and FoSun acquiring US commercial -- and specifically Manhattan properties -- I don't think the trend is going to end.

The latest is: "China Life Insurance team with US developer to purchase Manhattan office tower that houses UBS."

Now, since commercial property sales have slowed in the U.S. so far this year, it appears that Chinese investors are able and brave enough to continue to plow money into this market.

So far in 2016, Chinese companies have purchased or will closed escrow on 47 U.S. properties worth $9.3 billion -- according to deal tracker Real Capital Analytics.

See the article linked here:

http://www.wsj.com/articles/chinese-investors-pour-money-into-u-s-property-1464110682

I just hope that these companies will turn their CRE acquisition attention to Las Vegas, NV as a place to invest.

With Las Vegas recovering from the 2008 economic collapse and affected property values dramatically lower, I believe the time is right for Las Vegas CRE to launch into another value increase.

Which means YOU should be taking advantage of these lower priced Las Vegas CRE properties.

So, IF you have any questions about investing in Las Vegas commercial real estate, contact me with your questions and I will reply as quickly as possible.

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

8% Cap Rates have returned to Las Vegas!

This is to alarm you!  I am trying to wake you up!  Las Vegas CRE property prices have gone down, enough, to start telling everyone that there are now 8% Cap Rates available!

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.

And, most of 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).

However, because of the state of the economy, I have complied a list of CRE proeprties that you could acquire at an 8% Cap Rate or Higher.

So, if you have been considering acquiring a Las Vegas CRE property, I am now telling you, you can acquire that property for an 8% Cap Rate right here in Las Vegas, NV!

Where not even a year ago, these very same properties might be offered at a 6.5% Cap Rate range, you are now seeing them at 8% or Higher.

Now is you chance to acquire a property with better tenants or longer leases in the existing property.

For a complete list, please email me and i will reply with the list. Prices run from $600,000 to $10 Million.

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

Has Resort World Hit a Glitch?

I do know that Boyd Gaming wishes they had never tore down their Cash Cow Stardust property.  It was old and out dated, yet it was paid for.

Resort World, came to town and quickly snapped up the mostly vacant lot for an exceptional price.  $350 Million for +/-88 acres OR just under $4 Million an acre.

But, now I think, Genting Gaming finally realizes they bought on the wrong end of Las Vegas Blvd.

"The Strip" as it is known worldwide, runs from +/-Russell Road at the "Welcome to Las Vegas Sign" up to and including the Venetian and Palazzo Resort.  Anything north of the Spring Mt and Las Vegas Blvd intersection is truly NOT on "The Strip."

Now, Steve Wynn will say he's on "The Strip."  Ok, I'll go along with that simply because he's right at the NEC of this very intersection (Spring Mt turns into Twain from Las Vegas Blvd east).  And the Fashion Mall is on the NWC, so I'll allow them to say they are on "The Strip" too.

But, since the north part of this intersection has never truly ever been financially successful, it truly isn't "The Strip."  You see, the Strip is the section of Las Vegas Blvd where there are +/-100,000 people walking to and fro from one casino to another.  It is essentially the Entertainment Corridor that made Las Vegas famous for being the fun, party city it is.

And, if you ask most people what Las Vegas Blvd intersection they know the best or think of when they think of Las Vegas, they will say Tropicana and Las Vegas Blvd.

Now, as for the North end of Las Vegas Blvd, the Fontainebleau at maybe 50% completed sits unfinished because it is way, way overpriced.  I wrote an offer for it a few years ago at $450 Million, yet that was turned down as being too little.

The Alon, which sits almost directly across the street from the Wynn, is (apparently) struggling to raise the additional $300 Million needed to begin construction.

And, Wynn is proposing to build a +/-40 acre lake that will draw hotel guest away from the casino and out into the bright hot sun.  A Retired Gaming executive once told me you don't want your guest just sitting around lounging by the pool.  You want them inside the casino -- gambling.

Anyway, I always felt that Steve Wynn knew what he was doing.

Anyway, here is an article from Motley Fool you should read.  I feel it explains a lot about the North end of Las Vegas Blvd and the lack of construction in this area.  And, since there is very little foot traffic in this area, it is NOT the section of "The Strip" or more accurately Las Vegas Blvd that will be successful.

http://www.fool.com/investing/general/2016/05/08/has-the-biggest-risk-to-established-las-vegas-casi.aspx?source=iedfolrf0000001

(You may have to copy and paste into your browser.)

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

Looking For a CRE Steal in Las Vegas? What about a Great Deal @ +/-9% Cap!

In the past I have written about Las Vegas CRE Cap Rates.

But, most investors I deal with on a regular basis truly don't understand how Cap Rates work.

Now, I don't mean to insult anyone, but I do need to explain that as long as long term interest rates are set at a number so low, the cause/effect of those low rates will keep CRE selling prices high -- which means low Cap Rates!

You see, if you get a loan at 3 or 4 percent, Cap Rates will remain at 5 to 6 percent.  It's just fundamentals. (Please contact an economist for further explanation.)

Anyway, back to my theme...

A local property owner contacted me last week to ask me if I could help him find a buyer for a property he acquired out of foreclosure a few months ago.  You see, he re-leased the property to the existing tenant on new five year lease; and now wants to sell where he would make a small profit. (I always consider $100,000 a small profit.)

Anyway, I took the property information, sent it out to six or seven experienced property owners I had grown to know through the years and waited for their response.

One, called me right away and said: "That property is Crap! Find me a Good Deal!"

Not insulted, because I do understand this investor's thinking.  He was actually the one who wanted me to find him a Walgreen's at an 8% Cap Rate. (They currently don't exist anywhere in the US.)

Anyway, I had to explain to him that the tenant's lease was a new ink not dried five year lease, with a five year option.  I told him he would actually be buying this property at a 9.5+/-% Cap Rate.  In essence, this is a steal!

So, the tenant isn't a national credit corporation; the tenant only has this single location; and he had been very, very busy operating his auto repair/tire business here for many, many years.

Is the property old?  Of course.  The building was built in 1970.
Was the lot large enough for his use? Yes, it is!  It is on a .51 acre parcel right on a corner. (And, it is fenced!)
Is the street traffic busy enough? Yes!  It is addressed on a heavily traffic street that runs east west across the Las Vegas Valley.
Plus, there is a Lowe's and a Walgreen's in what I term: "Within Throwing Distance." (Now, I know for a fact that I can't throw that far, but you get the idea.)

Still, the price, the newness of the lease, the fact that the tenant had been there for a long, long time and is paying a good monthly rent of $5,200 NNN per month, you would think that this might be flip-able in the near future(?).

Well, if you buy at a 9.5% Cap Rate -- when long term interest rates are at 3-4%, all of you should be picking up your cellular phones and calling me ASAP!

Asking price? $750,000!  Selling price? $650,000.

What are you waiting for? Call me!

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

You Don't Have to be Rich to Invest in Las Vegas CRE!

A few people through the years have poked fun at me because I am so enthusiastic about people getting involved in Las Vegas Commercial Real Estate (CRE).

Some have even joked that if they win the Power Ball or Mega Bucks lottery, I would be the first person they called. (Not to share it with me, but to help them buy a Las Vegas CRE property.)

I immediately tell them: "But you don't have to be rich to buy a CRE property.  You should start with something small and affordable."

Case in point: I know of a small office (1,900 SF) that is for sale at $299,000!
Yes, it is located on a major traffic road that used to be homes.  But, since the traffic on the street is so high, the City has allowed these home owners to convert their houses into small offices.

Now, the asking rents in this area run about $1.00 PSF ($12 PSF Annually) -- which is not bad considering that this location is a very good spot for first time tenants to get their growing businesses going.

And the investment of $299,000 is about an 8% Cap Rate on the outside looking in.

And of course if you don't have the total sales price amount, you could get an 80/20 Loan-To-Value (LTV) Loan. (Please consult a reputable loan company in your area for guidance on this issue.)

Anyway, if you are willing, this is a very good place to start your CRE portfolio.

So, if you live in one of the higher priced metro residential markets, you know that this is probably less than you spent buying your personal residence.

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

The Chinese are NOT fearful of Trump. (I think they know he lacks presidential leadership qualities!)

Over the past few months -- especially the last few weeks -- many of the overseas investors I have been working with have stated to me how fearful they are of a Trump presidency.

One client from Europe said that the European Union doesn't want to invest in the US because they think Trump has a chance of winning the Presidency. (He actual said Trump thinks he is running for dictator of the US.)

My Middle Eastern client said that one of his investors is a Sheikh and the Sheikh said he will NOT invest in the US because of Trump's supposed ban on Muslims entering the US.

However, Anbang has continued to make offers on US companies and buy up US properties regardless of Trump's Chinese bashing.  This made me think two things:

1.) The Chinese know that what Trump is proposing is as doable as any of Bernie Sanders proposals.  They will never get done; and,

2.) The Chinese understand that old white men are the ones supporting Trump through the primary process.  They know that Trump doesn't have a chance at being elected president at all.

Recent general election polls that I have seen on the Internet show that even Bernie Sanders would be able to beat Trump in the general election.  And even though there is a lot of hate being spewed by the far right about Hillary Clinton, she would beat Trump easily.

So, with this in mind, I hope to quell any foreign investor fears that Trump will ever reside at 1600 Pennsylvania Avenue in Washington, DC -- I just don't foresee this ever happening.

And, as far as I am concerned, Trump invalidates, bullies, and pontificates a hatred that only  (ignorant) old white men are willing to embrace.

When my ancestors were the first to come to America -- along with the other foreign people who followed along after them (not a legal issue at the time), they were the ones who made the country it is.  And, then, other people from around the world came -- all searching for a better life, and a better way of living. (The Statue of Liberty emphasizes this point.)

And the Chinese know that the type of leader Trump is demonstrating he is and would be, will not win enough votes to win the general election of the freest, most democratic country in the world.

So, please overseas investors, relax.  Trump will not be elected President.  If the Chinese know he  truly is not qualified to lead the free world; he isn't.

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

On the Horizon...

Donald Trump, for some strange reason, is winning over (let's call them) normal every day Old White Americans.

I truly don't understand what they are so afraid of.

Donald Trump is fear mongering.  He is playing to the lowest common denominator in this GOP primary season.

With that said, I received an email from my Middle Eastern client which in essence said: Until Donald Trump is out of the presidential race, middle eastern money stays out of the US.

Here is what he sent me:

"... with all the madness and shocking popularity of Trump!!! Which foreign investors specially Middle East take it very seriously not only because of its extreme hatred for all non Americans!! But also because it reflects a lot Americans same feelings and it sheds very bad and instability. On the Horizon."

I don't know if Trump realizes how much his words are hurting American Business.  I don't think he cares about Americans as he implies.

One minority client said to me he thinks Donald Trump is filming a reality TV show and went on this run for president as part of this TV show.  The problem is: he expected to be out of the race by now but he is winning with words and phrases that would have cost other politicians their elected positions.

I do NOT know if this is true.  But, I am NOT voting for Trump in the General election if he wins the GOP nomination.  In my opinion, there is no room at the highest elected office in the world for some one with so much fear and hatred in his heart.

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