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

Sunday, September 20, 2020

Frozen Foreclosures are happenning!

Even though I do NOT list or sell Single family homes as a Commercial Real Estate Broker, I do follow and occasionally buy homes for my own sake.

And with the economy headed into the toilet, again. (Thank You Donald Trump!)
I have heard that there are thousands of homes in pre-foreclosure. This means the home owner hasn't made any mortgage payments for months. Thus, here is one explanation:

The temporary freeze on foreclosures applies to Fannie- or Freddie-backed, single-family mortgages only. The pause on evictions applies only to tenants who live in properties that have been acquired by Freddie or Fannie through foreclosure. It does not apply to tenants in homes that have not been foreclosed on.Aug. 27, 2020

So, with homes about to be foreclosed upon; and the amount of homes already foreclosed but still being occupied by the owner or tenant, we are going to see, probably at the beginning of the new year, another tsunami of homes for sale via foreclosure or portfolio sales just as we saw in 2009.

So, if you are a home investor, kind of like me, you are going to see another opportunity like in 2009, to acquire rental properties on the cheap.

Since I was looking to buy another rental property this summer, the wife and I decided to hold off to see just where prices were headed.


I think down.

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, September 15, 2020

Nothing like Heading Full Throttle Right into an Economic Depression

I am predicting economic disaster coming our way full throttle in the coming New Year of 2021.

To me, what Donald Trump and the Republicans have done with their Tax Cuts, is going to leave us hanging and will result in a large economic collapse than we had in late 2008 and early 2009.

Am I being pessimistic?
Yes!

Will many people be losing their homes again?
Yes!

Was Donald Trump the wrong person to be President?
Yes!

And, his lack of leadership during this pandemic, has only fueled the fire.

I am guessing it will take more than a year to recover from such a devastating result of his incompetence!

Disagree?
Ok!

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, September 8, 2020

It's Time to Acquire a Downtown Las Vegas Apartment Building

With the way everything is going, and with Downtown Las Vegas in need of housing, here is an opportunity for a small investor to make some money.

OK, you could make a lot of money, but you have to be patient. (If you are NOT patient, you won't make any money.)

a 42 unit apartment building, that had a fire, will begin renovation at the end of September, 2020.  The contractor says it will take him six to nine months to repair, renovate and improve the fire damaged building.

The Alpine Motel Apartments

That's right!  The Alpine Studio Apartment building is ripe with profit!  IF you make an offer now, let it sit in escrow while being repaired, then close upon it's completion.

And, if you wait too long, once fully occupied at +/-$900 per month per unit, the market value of this apartment building becomes +/-$4.2 million or more!  (That would be your loss!)

Now, right now, you could put this property in escrow at $3.3 Million, wait for the construction to be completed, then close before leasing.  And the Close of Escrow could be contingent upon the City of Las Vegas approving residents occupying the building once again.

Questions?

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!

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!

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!

Tuesday, June 16, 2020

The Local Las Vegas Motel Market

With Resorts commanding top dollar, and some even falling back into foreclosure, the local Motel scene is alive!

The reason is, even though the Resorts were shut down, the local governments understood that local motels were essential to helping keep visitors to local residents open and happening.

Years ago, my wife and I decided that it was better for relative/out of town visitors to have some visitation freedom!  
You see: Las Vegas is a destination that some want to partake in as a complete stranger; and, they want to do what could be frowned upon in other (outside of Nevada) neighborhoods.

So, initially, we booked local motel rooms for them, but they soon got the hint.
(FYI: The wife & I for years would visit "them" and be offered accommodations in a relative's house.  But, we felt we needed 'more privacy.' So, we started booking stays at local motels when we visited them!)

Thus, we maintain privacy. and visitors maintain freedom to gamble until they drop without worrying about their hosts!
To us it is a Win-Win!

So, with local motels being necessary or essential, and the resorts shut down, my listings have generated a lot of interest.

Thus, the need for qualified motel persons to contact me asap while I still have two remaining.
(Another FYI: I am currently negotiating a potential sale on one of them.)

If interested in motel income....


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

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 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!

Tuesday, January 14, 2020

Rail Served Land in Las Vegas!

Recently, I've been thinking about the Railroad.
All the live long day.

Okay, enough of that.

About a year ago, I ran into a Land Owner who resides here in Las Vegas who owns several acres of land that he is considering for sale.
One of his parcels is adjacent to a parcel that has rail service.


Now, there's no warehouse, or anything like that on the parcel; but, there is a rail spur on the vacant parcel.  This could add value to this owner's parcel if he does acquire it.


It sits there all by itself, all alone with no other rail served parcel in the area.


However, the parcel with the rail service is NOT big enough, by itself, for any warehouse development.  So, in order to build and be able to utilize the rail spur cost effectively, you would have to acquire the surrounding parcels.

Unfortunately, there's the rub.

But, I have approached the adjacent land owners about selling.  Some are willing; others no so much.  (Their prerogative. )  Some want more than top dollar, the others are content to keep their land and keep it as is.

Anyway, if interested in developing a rail served parcel in Las Vegas, and need my insight...

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, January 9, 2020

Tragedy Attracts A Low Balling Crowd!

Ever since the Alpine Motel Apartments suffered it's worst day ever and a resulting six people died, there has been an uptick in real estate interest for this property.

Yes, the Low Ball Flippers have contacted me about buying the property.

Alpine Motel Apartments

All have the ability to close real fast, and they are Cash Buyers -- they claim!

The problem, aside from the legal liability the Owner is going to suffer from (alleged) code violations, is these Low Ball Flippers can buy quickly -- only if the Seller would carry back a loan!

Now, I know from my years of experience, that when you are a Buyer asking for a Seller to Carry Back a Loan, you are NOT a Cash Buyer!

And, to add insult to injury, their quick buying price is way less than what the property is worth.  Vacant, the property should sell for about $3 Million in it's "As Is" state.

But, with the pending litigation, that puts this property on hold.

In the words of the Owner's attorney, "Hold for now."

In the meantime. my heart goes out to the victims caught in this tragic event.

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, November 25, 2019

The Redevelopment of Downtown Las Vegas is the future of Las Vegas Development!

Since Tony Hsieh started buying up lots and lots of real estate parcels east of the Downtown Las Vegas Fremont Street Experience more than 10 years ago, land flippers have also been buying up property with the intent to flip to Tony's Downtown Project.

And, with the City of Las Vegas investing in widening the Fremont Street sidewalks east of Las Vegas Blvd, this area is beginning to become more pedestrian friendly,  Local businesses have high hopes this attempt to draw foot-traffic will help the businesses in this area become profitable.

AND, with businesses drawing more people, the City also hopes this will draw more development in affordable housing -- which is in such dire need in this area.

Now, The Downtown Project has built a 250 unit apartment building called Fremont 9 at the intersection of (you guessed it) Fremont and 9th Streets; and, they are beginning to develop another +/-250 unit apartment building at 11th and Ogden.

Housing is in such demand, that even older apartment buildings are being sought to provide housing developers the opportunity to cash in on this trend.

The Alpine Motel Apartments

One such opportunity is the Alpine Motel Apartments.  Don't let the name fool you.  It's NOT a Motel -- even though that's the name it was given when built in 1972.

It is and has been Studio Apartments all along.  It currently has the ability to rent out weekly.  But, the City of Las Vegas would like to remove that grandfathered ability with any new construction at this site.

Now, it is currently being rented monthly.  But, because of the run down state of the property, it is in dire need of renovation.

That's where the rub begins.

Some developers think it will be too much to renovate.  Others just want to low ball offers so they can do a lipstick on a pig and flip.

Even The Downtown Project made a low ball offer which was quickly rejected by the Owner.

Comparable Sales, though, indicate the AS IS Market Value to be $3 Million.  OR, at about $73,529 per unit.

BUT, the Seller will accept $2.8 Million.  OR, $66,667 per unit.

And, this falls right into what I think the cost of renovation could be: +/-$6,000 per unit or more.

Now, like I mention above, this property has had it's share of offers -- mostly low-ball offers that the Seller has continuously rejected.

Yet, I continue to strive toward a Closed Escrow/Sale for this property.

So, if you are ALL CASH with a QUICK CLOSE, there is a price that this could be acquired at!

You just need...

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, 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!

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!

Sunday, August 11, 2019

SMOG!

Climate Change OR Climate Change is a Hoax.

It doesn't matter which side you are on.  No matter where you go, just about everywhere -- especially in urban areas -- you will encounter SMOG!

So, in the US, Smog isn't considered a health hazard (Or, is it?)

Now, if you go to China, for example, their Smog is so bad, you don't truly want to go to China.


But, yesterday, my wife & daughter took a day trip from Las Vegas to Los Angeles to well, just do a day trip.

Now, they did drive using our daughter's Toyota Prius hybrid.

When they had returned late last night, my wife said, (paraphrasing) You could see how bad the Smog was as we drove down the hill (the section of I-15 through the Cajun Pass).


Yet, because they were on a mission (from God?), they continued on.
But, as they continued, the Smog didn't get any better.


I think the problem with Smog comes from the density of Cars with Combustible Engines.  And, even Jay Leno, who is probably the most well known Auto enthusiast, admits that the electric car is the future.


But, since our daughter had driven for a ride sharing company (and made very little money), she has taken saving gas money to heart.  (She also with her hybrid is doing more to save the planet than most of us (me included).


But, not to put the blame squarely on Los Angeles or Southern California, Las Vegas has a growing Smog problem, too.

Lately, I've been considering buying a hybrid, also.  Maybe even a Tesla.

My problem is the same as all baby boomers: we grew up with muscle cars and we think that's the standard of any automobile we drive -- regardless of it's combustible engine size.

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!

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!

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