Underwriting says the property won't pencil out!

The headline of today's post is a lie!

It's what California investors have been telling me about one of my Downtown Las Vegas listings that's for sale at $2.8 Million. That's the Owner's selling price.  And, I agreed he shouldn't sell it for any less.

But, a lot of the California Investors that have approached me on this studio apartment building just want to steal.

They are retreating from California because the prices are way, way too high there.  So, they are crawling into Las Vegas trying their best to steal a property.

Now, some have been doing this for years and years.

Others, are new to this market.

But, when I tell them about the benefits to buying at a 9.9% Cap Rate and that area rents are slowly increasing, they take the information under advisement and then -- a few days later -- they give me the phony excuse.

The Alpine Motel Apartments Downtown Las Vegas, NV

(And the parking lot is part of this parcel.)

Yes, the property needs remodeling.  Paint and carpet has a cost but NOT a $1 Million dollars worth of cost.  Besides, the already renovated 27 unit apartment property one parcel north SOLD for +/-$87,000 per unit six months ago!

These investors seem to like wasting my time.

If I had $2.8 Million, I would have acquired the property already.  But, I'm short in that area.

And, no I'm NOT going to play the lottery even if it's more than $1 Billion.

Too many dumb people play just to make one dumb person rich.

So, I will continue on with my marketing.
There is a buyer out their looking for a fixer upper who doesn't mind earning +/-$21,000 per month!

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!

Unemployment is DOWN! Under employment is UP!

Unemployment is at such a low, low number.
This is great news!

But, as my PhD in Economics uncle once said while bragging, 'The economy is doing great! More people are back to work and off unemployment lines.'

To which my Mom replied to her brother, 'That is great news! Now, if only they had found equal work to what they were doing before they were laid off!'

Such is the case today.

Unemployment is down.  Workers have run the fixed time that they can collect unemployment. (Which is six months.)
But, have those people truly found work?

OR, did their unemployment time just run out on them.  And, since they are no longer collecting unemployment checks, have they truly found a job?

You see, historically once your unemployment runs it's course, the government considers you have have been re-employed -- whether you truly are or not.

But, in truth, most probably did find a new job.  They probably did become re-employed.
But, that new job most probably came with a drastic pay cut.

To go from earning $40,000 per year to earning $16,000 may be considered re-employment, but that doesn't cover the bills.

If these former unemployment collecting workers did find work, it was that they had to settle for a job that pays much, much less then what they were earning.

That's IF they actually did find work!

So, until I see a more comprehensive study on this matter, I'll keep my excitement for the re-employed to myself -- for now.

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!

LAND! HO!

Since I live and work in the Southern Nevada Desert, this doesn't make much sense.

But, my ancestral line runs smack through east coast whalers who captained the ships on those long ago whale hunts.

But, as I live and breath dusty desert air, I do find myself helping land owners to sell their land.

This one particular parcel is actually two parcels that are very close to each other.

A 7.89 Acre parcel and a 5 Gross Acre parcel.  Each has water, power and telephone service to their sites.  Each is on Septic Tanks.

Anyway, the Seller's asking price was $12.18 PSF.  We immediately received an offer at $13 PSF.

I strongly suggested to the Seller "Take It!"

He did.

The property details are it is M-1 Land with outside storage.  Most of the land in this area is ground leased to contractors.  These particular parcels generate more than $10,000 per month in gross rent.

The Owner is a local business man who owns a large local trucking company.

I think he's done well for himself through the years.

Still, you blog readers can do the same if you give yourself time and effort.

You just need to begin.

And, you begin by contacting me to see where your starting point is.

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!

Sports Loving Investors! A Las Vegas Sports Bar For Sale at +/-6% Cap Rate!

With Football back in full swing, I'm hoping for a tremendous Football Season!

Okay, I'm a Patriots Fan and they forgot to show up against Detroit!
(I guess they wanted Matt Patricia to win so badly, they gave him the game?!)

Ouch!
Sorry, Lions fans!

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

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

And, these are located in these particular sports bars because of the credibility of the Tenant which is a National Credit Tenant who -- at this particular location -- is on the hook for at least 13 more years with a Corporate Guarantee!

So, if you are interested in a long term Net Lease Investment, this is the property to acquire!

Not only does this property have 13 years remaining on the initial lease term, the tenant is paying a 2.5% increase per year (which doesn't happen anymore for this tenant), and for the options, the rent increase is 3%!

AND, for a long, long time, I have blogged about these types of properties because I feel that these NET LEASED INVESTMENTS! are the best to have and hold long term.

The Tenant at this location pays for the building maintenance, the building's Real Estate Taxes, and Insurance on top of their  $202,000+/- annual rent!

So, if you have been searching for a long term single tenant NNN Investment, this is for you!

Don't wait!  Email me right away so you do NOT swing and miss on this too good of an investment opportunity!

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

Here Come The California License Plates!

Full Disclosure!

I am guilty of this!

Years & Years ago, I grew tired of the hustle & bustle of Massachusetts!

Longing for a change, I broke up with my then Girlfriend, packed my things and moved to California!

At that time, I had always wanted to go to LA.  The warmer climate suited me.

While there, I worked a variety of jobs, some on Film/TV sets, and I met my wife/life partner.

Recently, we were discussing the heavier than usual traffic in and around our Las Vegas neighborhood.  I mentioned that I am seeing a lot more California license plates on various vehicles and she reaffirmed this.

She added, "Their driving is atrocious!"

Bemused, I agreed.

Lately, for some reason, there seems to be a lot more California license plates on vehicles driving around Las Vegas.

I don't know the reason.
I don't have any statistics that would confirm this observation or not.
I have NOT discussed this with anyone else, so this is just my opinion.

Now, I don't care if there are more Californians moving to Las Vegas.
(I'm guilty of this when we moved out of overcrowded Los Angeles in 1991.)

I take it in the ensuing years, things have just gotten more crowded in Southern California.

I try my best to NOT go there unless it is absolutely, impossible to NOT go.

Lately, I've succeeded in staying away.

And, I do receive a lot of up calls from real estate investors considering acquiring a Las Vegas property -- which is okay with me.  If you have cash, give me a call! I will find a suitable CRE property for you!

Will this trend continue?
I hope so.

In my profession, I really don't care where buyers or sellers hail from -- as long as they are qualified!

If qualified,

Contact David Howes at: davidATdavidhowesDOTnet
OR; 7 0 2 5 0 1 9 3 8 8
AND Please #Follow David on Twitter: @DavidAHowes
Have a nice day!

My 89 Year Old Mom Fell and Broke Her Ribs!

OK, something personal this time around.

My Mom turned 89 this past May.

She still lives alone and was laundering her sheets when she tripped and fell on them while remaking her bed.

Now, us siblings have long said she needs someone to live with her.

One of my younger brothers has been, but he also has a full time job, and can't be there full time.

So, another younger brother suggested we get her an "assistant."  I reminded the siblings that, that will never work because Mom wants to remain independent.

(If your Mom is like my Mom, you understand.)

(Just to clarify, I have four brothers and three sisters.  BTW: the Irish Catholic rhythm method doesn't work.)

Anyway, last week my sister, Susan, texted that Mom was in the hospital because she fell while making her bed.

My brother, Thomas, confirmed later that Mom broke 5 ribs but they weren't displaced.  I guess that is the "Good News!"

The wife & I decided to send a 'Get Well' gift to my Mom.

As of Monday, my Mom was home and resting.

Since she lives in Massachusetts and we live in Las Vegas, there's probably a field trip over the holidays to visit her.

Hey!

Your Mom is your Mom regardless of your ages!

Get Well, Mom!

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!

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!

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!

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!

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!

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!

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!

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!

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!

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?

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!

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!

"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!

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!

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!

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!