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

Tuesday, July 24, 2018

Everyone wants to own a Las Vegas Resort Hotel Casino!

All of you.

Yes, every single person has dreamt of making millions in a single roll of the dice; or the pull of a slot machine, and on a single try.

Okay, I used to think that would happen to me. (Never has.)

So, I decided years ago, to keep my hard earned money in my pocket (OK, bank account) and never, ever gamble more than $20 dollars if and when I do go gambling at all.

(It's usually on a Mega Bucks machine and I would always bet the max of course, because otherwise, you don't win the Mega Bucks jackpot.)

But, I learned recently there is a resort property quietly for sale which will probably be sold in the next yer or so.

The problem with the property is that it is NOT earning any money.  It desperately, needs to be re-positioned -- that's the polite way of saying that in it's current state of operation, the property is going to fail before the year is out.

Anyway, No.

I will not ID the property.

If you want information on any Las Vegas Resort, you need to click on the Las Vegas Casino Information Button, print the form, fill it out, have it signed by a company signatory, scan and email back to me.

Then, once I am satisfied with your qualifications, I will begin to send you property details of what you qualify for.

If it is a Mega Resort? Great!
If it's a small, restricted gaming property?  Great!

Let's get started.

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, July 19, 2018

Proof Of Funds! Or, Proof Property is For Sale!

The past few weeks to more than a month have been a very stressful time.

I've know about a property that is "Off Market," yet "For Sale" according to the Owner.

BUT, when I approach the Owner about selling, he continually reminds me that he needs "Proof of Funds" (POF) so he knows whether or not the Buyer is capable of closing on the purchase of his property.

Now, this isn't just an everyday house sale.  This isn't an everyday commercial building, or apartment property in the several hundreds of thousand dollar sale.
This is a property worth +/-$25 Million.

A couple of weeks ago, I present the property to a national credit buyer and they said they'd get back to me.

OK, they need time to mull it over.  I get it.

I gave the usual spiel, blah, blah blah, Proof of Funds, etc.


Well, I just fond out that this one particular buyer has decided to pass on the property.
Everything about it fit the Buyers Acquisition Criteria -- except the Proof of Funds!

Now, this company owns about 100 properties nationwide.
They buy, develop and hold long term all of their acquisitions.  No flipping for them.

Well, I just had to know the real reason why they decided to pass.  So, I gave my contact a call.

Boy, did I get an ear full.

Apparently, the experienced buyer for this company has heard this phrase: Proof of Funds more than he wants to count.

He has come to learn that when he hears this phrase, the owner truly doesn't want to sell.

In his 30 years as a Property Buyer for this and other National Multi-Family Companies, when he is told to provide Proof of Funds, it tells him one of two things:
1.) The Seller is inexperienced
2.) The Seller doesn't truly want to sell

When I spoke to the Buyer today, he was leaning more to number 2 on this property.

In his experience, once that phrase is uttered, he turns his focus on other potential acquisitions.

I don't blame him.

If an owner is being so tight about POF, the Buyer knows it will be extremely difficult to get a property into escrow; and even more difficult to close escrow.

So, I learned something new today.  I never knew that, that phrase was the Seller's way of stating, "I don't want to sell!"  Why don't Sellers just say, I'm NOT selling?

All I can say is: "Lesson learned."

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

Thursday, June 28, 2018

Sports Bar Ownership? OR, Real Estate Ownership!

Football is about to be back in full swing!
Training Camps are just around the corner.

With that said, there are fabulous opportunities for the right Sports Loving enthusiast to acquire a Net Leased Investment Property where local Las Vegans go to unwind and cheer for their favorite NFL Team.

Yes.  The Raiders will be moving to Las Vegas in a brand new football stadium.  But, since Las Vegas was always a destination city, rather than an anchor city, most fans root for the team where the fan grew up to love and behold that area's team.


But, as the Las Vegas Golden Knights have proven, Las Vegas can hold their own.

So, hopefully, the Las Vegas Raiders will attract a local following.  Well, if they win, right?

Recently, I watched an interview of Dwayne Wade talking about his up coming post professional sports playing career.

In it, he said he did the Sport Bars concept and lost a ton of money.  He blamed it on being young and not business savvy as he thought he was.  He did admit he was only 23 years old.  Then, he joked that it took him three years in the courts to unwind that decision.

My immediate thought was: But, did he own the real estate?

You see, owning a sports bar is all well and good IF you are familiar with the bar business.
If not, you would be better off being the landlord of the sports bar and collecting rent.

Sure, one is you are providing enlightening beverages to patrons; the other is you are collecting rent.

One seems glamorous! The other mundane.

In truth, I'd take the mundane simply because of the monthly rent check that comes due even through the hazy fog of a hangover.

And, with that said, if you hold a Triple Net Lease (NNN) on the building, the Tenant pays for the building maintenance, the building's Real Estate Taxes, and Insurance on top of their  annual rent!

So, contact me!  Let's start a dialog on where you stand financially.

If sports bars aren't for you, then there are alternatives.

And, you don't need a million dollars to start.

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, June 6, 2018

Millionaires' Tax

This morning I saw an email from www.SelectLeaders.com that stated several states/cities are considering applying a millionaires' tax to real estate.

Their thought is: When the citizens are unable to afford a home in the city they live and work in, officials try to penalize those wealthy enough to buy homes within their municipal jurisdiction.

Is it right?
No.
Is it wrong?
No.

I understand trying to keep housing prices affordable.
But, IMAO, the way to do that is to develop/redevelop more affordable housing.
Yes!
You have to tear-down the old to build new.

But, you get some people who long for the "old days," who view new development as a sin on their city.

Thus, the stagnation on property and the escalation of property values.

Just my two cents!

Here's the article:

Millionaires’ Tax

Think the elimination of the state tax deduction on federal returns will affect real estate? New York City just upped the challenge proposing an additional Millionaires' Tax. Seattle passed a similar tax and Massachusetts will vote in November. Expensive cities may learn a lesson from their neighbors to the North. Vancouver is so expensive their politicians want to tax its real estate market into submission, and one out of five homeowners surveyed want home prices to fall 30% or more. Unlike Silicon Valley, London or New York where high-paying tech and finance jobs helps explain the high prices, Vancouver has such low salaries they courted Amazon with the boast, "The lowest wages of all North America." It is hotly debated if Chinese buyers are to blame for the 60% increase in home and condominium prices, but Vancouver increased their Foreign Buyer Tax to 20%, increased property taxes on second homes whose earnings come from abroad and added an Empty Home Tax. The sentiment: people who work in the city should be able to live here.

Susan Phillips, CEO, SelectLeaders Job Network 


To 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, June 2, 2018

Californians are moving to Nevada - Again!

Yesterday, a Multi-family investor from the Midwest that I have been trying to help buy a Las Vegas motel/apartment property, asked for the impossible.

Using the all too typical phrases of: "I'm a cash Buyer." "I can close quickly." You get the inference.

He's looking for a property which he can steal.

I've tried over the past two weeks to emphasize that the steals have been gone since 2012-13.

Here in 2018, you must accept the fact that a 10% Cap Rate purchase is NOT going to happen.

With the large national real estate firms in the passed year having acquired the larger apartment complexes in Clark County for Tens of Millions of Dollars, this has driven the smaller apartment owners/sellers to raise and keep a firm stance on their selling prices.

Sorry but if the national firms are buying at a 5% Cap Rate.  Your 10% offer is going no where.

The current problem causing this is the housing problem in California.  There was a report that the cost of California housing and apartment rents are so high, that (employed) people find it cheaper to buy an RV, park it on a quiet street, and live there -- all while they have a day job!

This housing crisis in our west neighbor has caused a lot of it's potential residents to move east to "cheaper" housing in Nevada!




Now, I'd sell my medium income neighborhood home to any qualified person.  I just don't have a place to move forward to.

And, as the wife said at dinner last night while discussing this topic, we don't want to start over - again.

So, even though our empty-nest home is worth three times what we paid for it, it would cost us three times to acquire a 'newer' residence.

This leads us back to the problem of multi-family acquisition cost.

Unless you understand the economics of the Las Vegas Valley situation, prices are going to be too high for you.

One seller I represent, has a portfolio of homes that he rents out by the bedroom.
If the home has three bedrooms, he rents out each bedroom to a different family.
He does this because it is cheaper for the low income family to share a house than rent one out by themselves!
Plus the landlord is able to get a higher than normal rent with three tenants than one!
Is it legal?
Hell, no.

But, it is happening all over the Valley.

Also, the Motels aren't as cheap either because before finding a stable place to stay, most transient families will stay at a low rent motel for up to 30 days, then move to another place -- all the while searching for work and a home.

So, will the Owners sell cheaply?
NO!
But, as the buyer, will you have a lot of potential tenants?
YES! (for right now).
Who knows what's going to happen to real estate in the near future?

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 24, 2018

Great Britain -- Yes, we finally made it

For more than a week now, I've debated -- with myself mostly -- as to whether or not to share some other (more personal) photos of our the trip that sailed around the island known as Great Britain.

Since I have never liked any photos of myself -- nor does my spouse like any photos of herself -- I decided to at least show us as a group having a pleasant time.

I can say this because it was the day of our disembarkation. We were traveling from London to Southampton to board the Norwegian Jade later that day. Stonehenge just happened to be on the way.

The traveling crew at Stonehenge

Since the people in charge of keeping Stonehenge nice and tidy, they don't allow anyone to go anywhere near the Stonehenge Monument any longer.  (I think it's for safety reasons.)
Anyway, this was as close as we could get.

It's okay.  Massive stones that were brought to this site thousands of years ago is as amassing as the recently erected gift shop that helps keep the place operating.

At every stop, there were multiple places for us tourist to drop a few pounds along our way.

I came home 5 pounds heavier than I left.

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 17, 2018

London - A nice place to visit but I wouldn't want to live there!

Backwards.

That was the initial thought I had as we climbed into the taxi from Victoria Station to go to the hotel.

Even on our last day there, as we loaded up the taxi for our trip to Heathrow Airport, I mistakenly walked to the right side passenger door to get in the passenger seat.  When I realized my mistake, the Taxi Driver humorously offered me the keys asking if I wanted to drive!

Embarrassed, I beg my apologies and scooted around to he the left side.
Oh, well.

London was great!
Great Britain was better!

 Big Ben Being Repaired!

 The Queen was NOT Home this day!

 Carol & the Tower of London!

No Golfing on Sunday at St Andrews!
=(

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 27, 2018

There are 34 Million Reasons Why you should Invest in Las Vegas!

I've known Jeremy Aguero for more than 20 years. I remember when he started his company back in his sublet offices of the (former Las Vegas) Lee & Associates Office -- when they were important in Las Vegas.

In this article, he points out that investors who go for it have a better than average chance of making money in Las Vegas.

Sure, property in Las Vegas seems overpriced.
Sure, some properties that have been recently acquired are at prices that seem to be a deal.

But, unless you get active and engage in attempting to acquire properties here (whether they be a resort property or an investment property), you will be left behind.

Thus, you will fail.

34 Million Reason why to invest in Las Vegas

The problem with Las Vegas isn’t the fact property prices (seem) high.  It’s investors from outside of Las Vegas don’t understand Las Vegas.

When Bob & I met for lunch yesterday, he said that when he entered the gaming business back in the 1960’s it was all about gambling.

He said, today it’s about the experience: the amenities, the wining & dining, the spa treatments, and shopping.

People are coming to Las Vegas. 42 Million last year alone.

You either want to be a participating observer; or you want to remain an observing participant.

Regardless of your investment size, a piece of the pie could be yours but you have to stop observing from the stands.

It is time to get into the game.

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, April 26, 2018

Subway to Close 500 more stores!

Subway has more than 40,000 stores worldwide.

Yet, they will be closing 500 stores here in the US.

Plus, in the same announcement, they will be opening 1,000 new stores around the globe.

This makes me think. ( I know, a bad trend for me.)

I don't eat at Subway.  I stopped going when I realized that the meats I was eating were similar to the meats I could acquire at a local grocery store. package and processes. It's probably always been that way, it's just that I suddenly noticed. Why would I want to buy a sandwich with the same meats I could get at home?

Is this cheaper for them to make my BMT?

A Subway restaurant is seen as the company announced a settlement over a class-action lawsuit that alleged that Subway engaged in deceptive marketing for its 6-inch and 12-inch sandwiches and served customers less food than they were paying for on October 21, 2015 in Miami, Florida.

Anyway, I gave them up even though other Subway sandwiches were a foot long for $5.  It wasn't enough to keep me coming back.

But, I think the core of their problem started when they changed their breads. I don't need 5 or 6 types of bread to choose from.

White or wheat will do for me.

But, I understand they were trying to be competitive and expand beyond their well established brand protocols.

Then, again, if they survive, I will most likely give them a try once again in the future.

I do have to eat!  Everyday!  At least three times!

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, April 22, 2018

Hot Las Vegas Housing Market!

Earlier this year, a local real estate investor that I've known for years, asked me to sell 8 residential properties that he has leased out.

The portfolio consists of Five Single Family Homes, a Condo, a Tri-Plex and a Four-Plex.



Since January, 2018, I've had more than three dozen inquiries for details about all the properties in the portfolio.

I've received two offers.

Both were so low, the owner just out right rejected them.

This article makes it sound as if you just have to meet buyers and they agree to buy.

HOT Las Vegas Housing Market!

I'm not finding that to be true at all.

There are not too many places where you can acquire 8 properties for around $1.5 Million.
AND, they still would be 'flip-able' post close.

The sad part of all this is that these buyers -- the one I'm running into -- don't want a deal.  They are demanding a steal!

If interested in these 8 residential properties that are currently earning a +/-$113,000/year rental income, email me at the below email address.  The deal is $1.5 Million for all eight!

Much Appreciated!

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, February 11, 2018

"Fire and Fury" is a Must Read!

Curious as to why the media was so solidly pumping Michael Wolfe's "Fire and Fury' I ordered a copy.

Having just completed reading it, my previous stance during the election of 2016 that Donald Trump was NOT qualified to be president is re-enforced.

The basic premise as written from a reporter's point of view is that (Trump) "-- didn't have the wherewithal to adequately function in his job."

And, it is my hope -- we survived the incompetence that Trump is raining down upon us.

A client from London recently stated that he is raising "European Money" in an effort to acquire US real estate assets because the "Trump Affect" has driven the value of the US dollar down to where US real estate assets are more affordable to European and Middle Easter Businessmen.

Another potential client from Australia told me via text message the Chinese investors who acquired US real estate assets over the past few years are quietly seeking to sell them -- given the potential profit they could bring.

My guess is that they want to sell before they find out the equity they acquired would be millions rather than billions on them.

With the current stock market volatility - up and down, and the Trump effect on US Ally relationships, this is cause for concern from a "businessman president" who truly doesn't know what he is doing.

It's my hope Congress finally realizes their success is hinged to giving Trump a permanent golf vacation via Impeachment.

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, January 30, 2018

Quick! It won't last! There's an 8% Cap Rate CRE Property For Sale in Las Vegas!

This is to alarm you!

I am NOT seeing property prices going down!

I am seeing them stabilize and in some case go up!

I know all of you are searching for that Mystical Steal!

Well, here it is!

That's right!

There is an 8.5% Cap Rate CRE Multi-Family Property in Las Vegas that needs to be acquired.

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.

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).

So, if any agent, whether they are here in Las Vegas or elsewhere, is telling you, you can acquire a property for an 8% Cap Rate, please expect the sales prices to be more or less in the 6.5% Cap Rate range.  At least your chance of a better tenant or longer lease exists with that property.

BUT, with that said, this multi-family/hotel apartment property is netting +/-$20,500 per month!

Yes, it is in Downtown Las Vegas; and you could walk away with the 'that's a down and dirty property' attitude.

Yet, the tenants here are long term and the property sits right smack in the City of Las Vegas Redevelopment district.

Besides, housing is needed in this area; this is housing; and Tony Hsieh is building an apartment complex down the street.

If you don't want to buy it, lend me the money, I'll buy it and flip it in a year or so when the price has increased.

Or, I'll refinance it and pay you off.

Interested?

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, January 1, 2018

Legal Weed - Boom or Bust?

A couple of years ago, I was (trying) helping an international investor who was dead set on acquiring a facility here in Las Vegas where he could grow and sell marijuana. So, he thought.

Since, at the time, I knew very little about the Nevada Laws on this topic, I did research to make myself a little bit knowledgeable.

Anyway, turns out he found out rather quickly that what he wanted to do, he couldn't do because in the federal sense, marijuana -- regardless of it's recreational or medical status -- is still illegal.

Thus, the Nevada Law was at the discretion of the Nevada Gaming Control Board. (Who voted that gaming sites/persons could NOT be involved in that industry.)

So, this investor couldn't open a dispensary inside a resort casino.

This meant he had to abide by their decision to NOT have dispensaries anywhere near their properties.  Oh, well.

Now that California has legalized Marijuana, a fellow Real Estate Broker I've known for years, sold a California Town last year that is near the Nevada - California border to a marijuana company.

He tells me their plan is to make a marijuana resort in the middle of a desert just off I-15 south of Primm, NV.

I thought that, that was great for him and an ideal spot to grow, sell and have marijuana enthusiast come so they could partake in their chosen lifestyle.  With this law now enacted, this should proceed. (We'll see.)

Anyway, after reading this Five Thirty Eight analysis, maybe being in the marijuana industry isn't going to be as financial beneficial as we all thought.

Pot Growers Dilemma

And since the Nevada Law was enacted in 2016, a lot of stores are popping up but will they last.

My wife's company has interior design proposals out to several marijuana businesses, but she is weary. She has been designing commercial sites for years and years and as usual, businesses come and go.

But, is this industry going to last?

Survival of the fittest?

What do I know?  I know that I am just a Commercial Real Estate Broker.  I can help you find a lawful site, but Marijuana is something I smoked as a youth and stay away from now as an older, wiser (I hope) man.

(I refuse to judge anyone.)

BUT -- if you are interested in finding a Nevada Site to open a Marijuana dispensary or grow facility, give me a call.

In the meantime, here is a summary of the Nevada Marijuana law actively in place.

Nevada Pot Law Guide

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, December 24, 2017

Red Sky at Night, Sailor's Delight! Red Sky in the Morning, Sailor's take warning!

Of course, most (maybe all) of you don't know a whole lot about me and my ancestry.

My lineage doesn't include any royalty. (That's OK. I'm still "Bossy" enough.)

But, it does include great-great-grandfathers who were Sea Captains. (That's correct!)
Especially, Captains of Ships that went Whale Hunting. (I can't turn back time...)

Okay, so they were never a John Paul Jones, or a Captain Ahab or anything like that.

But, since there is a lineage from them to me, I take the title to be given to me honestly.

Since we are in tumultuous times with an arrogant multi-millionaire pretending to be a leader, I think the saying applies.

Do I believe there was a political campaign based on deception? Of Course!
Do I think we'll survive? I hope!

But, when there are red skies at night while at sea, that indicates the next days weather (should be) calm and they will be okay far from shore. 

Whereas, if the red sky is in the morning, they know a storm is brewing.  So, the Sailors take heed and prepare for the on coming storm.

My sister, Dr Janet Howes, took this picture this morning while heading toward Gillette Stadium.

With that said, this past Sunday morning's Red Sky should tell us that the day's weather isn't going to be fair and calm.

If the weather does turn stormy, let's hope we can weather the storm!

In the meantime: Go Pats!

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, December 17, 2017

Holiday Cheer to Everyone!

It's my hope that all have a wonderful Holiday Season!

To those who celebrate Christmas: Merry Christmas!

To those who celebrate Hanukkah:  Happy Hanukkah!

To those who don't celebrate anything this time of year: Happy New Year -- regardless of religious affiliation!


We were going to try to do a gift-less Christmas this year, we'll see how that goes!

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, November 3, 2017

Owner Chews Me Out For Contacting His Lender!

First of all, I know the Owner quite well!

Second, there was a Notice of Default (NOD) filed on his property.

Third, I am dealing with a buyer that has expressed interest in acquiring this property and when I told them about the NOD, they said I should get the loan information.

With that said:  What I did wasn't wrong.

Been there; done that!

Through my years as a Real Estate Broker, I have also worked in the lender industry for prominent banks, mortgage companies, and brokers originating loans, etc.

I have acquire quite a bit of knowledge as to HOW? real estate financing works.

Do I know everything? No!
Do I continue to learn as the real estate industry evolves? Yes!

So it should NOT come as a surprise to anyone -- I told the owner -- that a buyer with cash wants to acquire property at or below market value.

That's how it works.  He reluctantly agreed. (He does the same thing.)

Since the property had an NOD, the buyer I am currently working with said: 'See if the lender will sell the loan?"'

So, I contacted the lender and was told: 'No! The loan is NOT for sale.'

I inform the buyer.  They were like, okay.
That's when the owner finds out through the lender I called, okay.
That's when the owner tells me: 'Don't do that ever again.' Okay!

But after hearing him out, I understand his position.  He doesn't want to lose the property but doesn't want to lost his investment into the property either.

I get it.  And, so do all of you fellow real estate owners.  You don't want to lose your initial or equity investment in any real estate property.  Neither do I.

Everyone knows that foreclosure is a bad thing -- especially when you lose your entire investment into the property.

I tell the buyer we need to make an offer before the NOD runs it's course. That was yesterday.

Hopefully, the buyer is able to convince his investors this is a steal at the asking price and should move forward quickly.

More as it happens.

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 25, 2017

People who hanker for the past, usually end up alone in a ghost town.

Just so you know...

Ghost Towns don't just happen.

They are the result of the current town occupants NOT keeping an eye on the future.

Now, Nevada has plenty of Ghost Towns.  They were built for an immediate need because so many people flocked to these towns for one thing: to mine Gold or Silver.

The problem turned out to be that when the Gold or Silver ran it's course, the towns expired because of ... well, NOT keeping an eye on the future.

So, not foreseeing the future or turning their business eye toward another income stream, the town expired.

This is happening all over the world.

Rhyolite Casino

And, it could happen to us right here in Las Vegas NV!

But I don't think so.

The reason I don't think Las Vegas will fail anytime soon is that this is a city built for tourist!

And, for this city to die, Las Vegas will have to stop changing.  That's right.

Las Vegas is continually changing.  They adapt.  The Casinos still operate, but they always find another way to attract tourist to our beloved city.

Recently, there was a push for more retail.  We have more malls here than anywhere in the US -- that I can think of.

Just about every Resort embraces a mall concept which is easily accessible from the casino. 

So, if you grow tired of the slot machine taking your money?
Okay!  Then, you have the ability to window shop the assorted stores in the resorts mall.

Retail is dying because of the Internet?
Okay!  Then, take in a show at a resorts theater -- OR, have dinner at a spectacular resort restaurant.

Sooner or later, you'll have spent your hard earned saved dollars somewhere in or about the resort.

So, all you who live in middle of nowhere America.  Are you still waiting for that factory job you lost to automation to come back? (Hint! It isn't returning.)

From what I'm told, Las Vegas has a shortage of workers.

Okay, the job doesn't require you to spend hours on end operating a machine drilling holes in metal; or welding two pieces of metal together. The machines can do that themselves now.   But, then again.  You need to adapt to see success in the ever changing economic environment.

Have I said Las Vegas enough, yet?

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, July 19, 2017

Mom & Pop Casino For Sale!

When I established my web site many years ago, I truly didn't have faith in it leading to very many clients.

Well, at least the web site hasn't disappointed me.

Anyway, recently, my web site has allowed various real estate property owners to contact me.

To my surprise, one husband & wife team did give me a call to ask about selling their local casino.

Now, for you want to be casino owners, don't get too excited.  Owning a casino is a full time 24/7 job.  So, unless spending your time always "on the clock" isn't for you, then casino ownership may be a thing you'd let others do.

I say this because these mom & pop clients want to sell because of that fact.

Now, this is a local casino in Nevada.  Unfortunately, it is NOT in Las Vegas.  So, the bright lights of the Las Vegas Strip won't be shining in your eyes as you make your way to and from 'work."

But, this property is a fully licensed unlimited gaming casino and it does have 60 motel rooms and suites for your traveling customers comfort.

The property does have a steak house restaurant, a Chinese Restaurant and a lounge.

The property is a combined +/+9,500 SF property on a total of 1.94 acres right smack in the middle of town on 'Main Street.'

(Obviously, NOT the subject property since this is no longer standing.)

Unfortunately, as the husband owner said, they are directly across the street from their biggest competition.

True, there are a variety of small restaurants, bars, taverns, sports bars -- all with gaming -- that are for sale in and around Las Vegas itself.  But, this property is the only actual "casino" with motel rooms (that I know of) for sale in this region of Nevada.

The owner of this property is asking $3 Million.

So, that is all I can disclose at this time.  You will have to email me for the Confidentiality Agreement in order to see the financial and property details.   Any further information requires this signed document.

Now the owner says the price is the price, but I know there is some wiggle room.

Is it making money?
For that answer, the signed CA is required.

Plus!
I need to know a little more about you as the buyer.
So please be prepared to disclose your acquisition capability. I don't need it up front.  But, your proof of funds will be required with any offer that is to be presented to the owner.

Once you've owned a casino for a while, you'll understand this tactic.

So,...

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

Monday, July 10, 2017

CRE Deals Come & Go! Some Fly - Others Die!

It's NOT too often I would be insulted by comments made by a Seller or Buyer.

When you work hard and try to accomplish the impossible, there always seems to be something that goes wrong and sets you back.

I like the analogy: Take two steps forward; one step back.

Hey! It's real estate and you never know what could happen until it does.

For example: my son and his wife recently told us they wanted to acquire a house.  Okay. I asked could I refer you to someone?

He said, they were thinking of buying without an agent.
Now, having been in real estate since 1991, I had to go, "Woo!"

Why would you do that?  (He and she have never purchased a home before, so I can see the obstacles mounting right in front of them.)

Anyway, I got the feeling that some one had hooked their ear about saving money by doing it themselves.  (Sorry, folks! But, that doesn't happen! You just end up getting ripped off!)

Well, with the help of my wife -- our son's mother -- we think we've bridged that gap.  (We'll see.)

Then, about a week later, a developer I know who owns an Off Strip motel wanted to talk to me on a Sunday.  Okay, I understand that real estate might have to be a priority over the weekend.  Well, during the call he proceeded to chew me out because the Chinese buyer I was dealing with wasn't moving fast enough for him.

(This requires some back story: the developer acquired this off "strip motel about 11 years ago to re-develop it.  He has waited, and waited because the economy had gone south in the mean time.  And, since development money had dried up; it has recently reappeared in Las Vegas.  Lately, he started to make noise he was going to re-develop the motel again.  BUT, he was willing to sell, too.  After re-contacting the developer again, he set a couple of unrealistic deadlines to get him an offer.

Anyway, if you ever worked with Chinese buyers before, you know they tend to do things on their schedule -- not yours.

So, in the meantime, there were a few delays with the Chinese getting an offer started -- as is their MO.

Well, the Sunday morning call was to let me know, the developer wanted to deal directly with the Chinese group and I'd be paid anyway.  He said he didn't think I had the experience to handle his transaction.

Okay, I'm insulted.  But, I know this developer and he is an a--h---!

I took the information and proceeded to contact my co-brokering partner over seas.  He speaks fluent Chinese.  Well, he didn't like that idea and thought it fishy.  He said 'let's look for another property.'  Which I am doing.)

After wards, I was thinking about this situation, and came to the realization that the developer never, ever had any intention of selling.  He was just hedging his bet against the economy here in the US until it improved.  Which it has.

So, all those years trying to find a buyer for his property was -- well, it truly wasn't a waste of time.  I was able to find other buyers while using his property as a prop.

No loss I guess.

So, my experience is questionable to this developer. NOT!  It's his excuse to NOT sell his property and further to try and raise additional cash for his development.  Oh, well!

One day we'll cross paths again.  We'll see what has transpires in the meantime.

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 12, 2017

Las Vegas Gaming Property Acquisition Do's and Don'ts

It's that time again where potential Las Vegas Gaming Properties -- may or may not be available for sale.  And, I (feel as if I) have to remind ALL potential 'investors' that you simply can NOT expect the owners to be 'dumb.'

Not going to happen!

And, YES! Because I live and work in Las Vegas. I do know of several "gaming properties" that are for sale -- but the owners will NOT state (or allow me to state) that publicly.

Yes.  There is a large parcel for sale that is listed -- but you don't want to buy that parcel because you will only receive slightly less than half of the total acreage fee simple.  The owner of the 'other (slightly larger) half is never going to sell.

How do I know this?  Simple: I know the owners.

Anyway, when I give you a price of a property; and I tell you that's the sale price, you can -- but it's not going to happen -- try to reduce that price it by saying the financials don't support that price.

In most Las Vegas gaming zoned property cases, the financials will never, ever support the selling price.

So, please take my word for it.  The price I give you is the selling price.

Okay?



The reason I stress this is you have to remember that the current owners of these gaming properties know the value of their land.  If the property is worth more as a tear-down, they already know that.
If the property is worth more via the financial statement, they know that, too!

So, if you are in the market for a gaming property in Las Vegas, be ready to acquire it at the stated market price!

The time for acquiring a gaming property as in a buy and flip, is gone.
In the reality of today's Las Vegas, the price of the property is the price!

And, unless you are going to buy and tear down, I suggest you stay on the sidelines.

An example of the last major company to come to Las Vegas, buy a gaming property at a rock bottom price, and trying to just paint and carpet to turn it around is failing miserably.

Of course, at that time they were saying just how proud they were to have been able to acquire the properties for below market value.  But, when they didn't do anything more than paint & carpet, the sophisticated casino patron moved on to another resort property.

The casino properties they acquired were at or very near foreclosure; They paid pennies on the dollar and tried to run them 'As Is' just as cheaply.

The end result speaks volumes about this approach.

And, all the while, they continued to lose market share because of their cheaper than cheap corporate attitude.

How do I know, you ask?  I live and work in Las Vegas, NV!

So, do you want honesty and a true to life assessment of the potential properties in question? If you do, then click the Las Vegas Casino Information Button in the right column, print, fill out with your company's signatory signing it, and email it back to me.

I need this form back BEFORE I release any information about any property to you that I know might be for sale.

Otherwise, Have a Great Day!

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!