Showing posts with label Net Lease Investments. Show all posts
Showing posts with label Net Lease Investments. Show all posts

Thursday, November 15, 2018

The Alpine Motel Apartments!

Alright, it's a misnomer.

It's actually 42 Studio Apartments of which 34 have a Kitchenette (or Kitchen Area).





Plus each unit has a full tub shower bath!

AND, it could be yours for the reasonable price of $2.8 Million.

And, because the net income is $20,930 PER MONTH!, that's a 9% Cap Rate to you!
The property does need renovating. But at $2.8 Million, there is room to make changes.

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!

Thursday, October 11, 2018

Operating Brothel For Sale!

This morning, I received this via email.

I've never sold a brothel even though they are legal in Nevada.

I just had to blog this so you understand that when it comes to real estate, a business can be included in the sale -- which this business sale includes the real estate!
Operating Brothel - Owner will finance
Located in Northern, NV 
Asking Price:       $2,000,000
Cash Flow:           $245,772
Gross Revenue:             $469,444
EBITDA:                       $245,772
Real Estate:                  $440,000
Business Description
Rare opportunity to purchase a Licensed Brothel. Seller Financing.
One of the last truly cash businesses available. Legal, operating, turn-key Brothel. Management in place and Seller will provide training. Limited competition located at the intersection of 2 major highways. Seller financing to a qualified buyer. Real estate included. Rare opportunity – these licenses rarely transfer to new owners!


Detailed Information
Inventory:                 Included in asking price
Real Estate:             Owned Included in asking price
Building SF:             6,590
Employees:              4
Facilities:                  6590 square feet, new roof. Real estate assessed at $436,229
Competition:            Very difficult to get into this business. Licenses are limited and none      are available in this area at this time.
Financing:                with $450 K Down
Support & Training:          Seller will train new buyer. Management is also in place

Reason for Selling:            Retiring

If interested in owning/operating a brothel...

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 10, 2018

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!

Monday, October 1, 2018

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!

Tuesday, September 4, 2018

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!

Monday, August 20, 2018

Don't You Wish You Had!

This past Saturday, I was roped into helping my Son and his Finance move some items to and fro to make room in their 2 bedroom 2 bath condo.
(They have a lot of stuff!)

They had to rent a U Haul truck for the occasion.

After it was over and we were returning the truck, I went to use the rest room.

Inside, I found these prints of an old, old Las Vegas from years and years ago.
(I didn't see any particular date as to when these were taken.)



But, as you can see, these are from a time when there was a lot of open space in and around the "Major Casinos."

And, in the background, there is even more land spread out as far as you can see.
And, it was all undeveloped.

But, who knew?

Who knew Las Vegas Land would be so extensive and spread out and most likely even back then: Expensive!

Now, I know a few people who did buy and sell land in Las Vegas back then and still do so on a smaller scale today.  And, through the years, they would developed some and rent them out.  And, during that time, they made millions!

Which brings me to my point.

There is a large parcel of land that could be developed either as a casino or retail and it sits in an area which indicates it should already be developed.

And, it is for sale for the right price.

Interested?

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!

Monday, August 13, 2018

"We need your expertise!"

Late last week, I received a call from an "Investor" who called me because he was waiting for a resort property to recommend an agent to him that could help him buy their resort property.  Since he was impatient, he found me and gave me a call.

OK, not a bad situation on the outside looking in.

Yet, he admitted that he had already made an offer for a 'Strip' resort property and wanted my expertise to tell him whether or not the price the resort wanted to sell was too much.

He felt it was way too high.

Now, in the past I've received calls like this and they all turned out to be fake buyers.

But, this Investor claimed he had already contacted the resort directly, then called me to get advice on whether the resort was asking too much?  I sensed I was talking to a rookie.

Anyway, he wanted to meet today in Las Vegas to discuss his situation.

Since he already contacted the resort directly, I said, OK, but I want 1% paid by you the Buyer to help you!

He asked if I would just accept an hourly fee for giving him an opinion.

I said, 'No!'  I retorted , 'If you want my help, you pay me a commission!'

That was the deal killer for him.

Over the weekend, while out to dinner with my wife and family, I mentioned this scenario.  My wife agreed with me.  If you are an Investor/Buyer, and you want my help acquiring a Las Vegas Resort Property, you call me first!

You then, sign an agreement that if you are successful in buying a resort property, you compensate me for my time and effort.

I did ask which resort he made the offer to? He replied with something about a confidentiality agreement and couldn't disclose it.

I know this is BS!

Most resorts will NOT even accept an offer unless it is at their price and they have fully vetted you.

This Investor, after researching him via Google and another web site I've come to rely on to verify client statements, doesn't appear to be able to complete a multi-million dollar sale.
(I could be wrong, but since I've been down this path before, I'll take my chances.)

My thought first thing this morning is, 'OK, I did kick him to the curb.'

In my time here as a Real Estate Broker in Nevada, I've run into too many want-to-be casino owners barking up the wrong tree who usually end up NOT ever closing any deals at all.

I wish the Investor all the best.

Interested in a Las Vegas CRE 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!

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!

Wednesday, July 11, 2018

To Opendoor or NOT to Opendoor?

First of all, I love easy real estate transactions.  They run smoothly and there are no hassles from the details.

Second, I absolutely don't trust easy real estate transactions at all.  Having worked as a Real Estate broker for 27 years, I've learned that the easy transactions usually turn into the hardest to close in a split second.

Now, yesterday, I received a solicitation from Opendoor to have them assess my home for free to see if I'd like to sell.


Inside was this nifty letter stating that I deserved a hassle free sale on my home.

(Now, I am NOT going to investigate this any further.  I want to be fully upfront about this.  But, I am going to analyze this without investigating this.)

The reason is, I think (I could be wrong.) that I know how this works. I think this is kind of like trading a car in to a dealership that is offering to "purchase" your old car in exchange for a new one.

You see, (most) car dealerships will make an initial offer that is very, very low. (65% of Low Blue Book Value.)

And, whatever is owed (if above that value) is added on to your next vehicle's purchase loan or lease.

House Flippers -- if you have watch enough Home Improvement TV -- demonstrates how Flipper's buy low and sell high.

I think this is what is happening here.

I don't have any proof of this.  And, I'm not saying it's bad.

It's something, as a Real Estate Broker for 27 years, that I will not get involved in.

Flippers are always looking to steal a property; then, flip the property (usually after just painting and carpeting the house) for as much as a sucker (I mean, Buyer) is willing to pay.

Years ago, the first Real Estate Broker I ever worked for said: "Never buy a house that's being flipped." 
At the time, I was a novice in real estate, so I didn't understand. Many, years later, his words of wisdom still ring true.

Since I don't work in the residential real estate arena, I wish Opendoor lots of luck.

Hopefully, this isn't a means to eliminate real estate brokers completely -- which I am seeing from other real estate web sites!

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!

Saturday, May 26, 2018

ICSC Las Vegas -- More like Deal or No Deal!

It has been more than 10 years since I last attended the weekend long Council of Shopping Center's (ICSC) Las Vegas.

Back then, I did my best to attract Buyers, Sellers, Landlords and Tenants in my attempt to establish a career for myself as a Commercial Real Estate Broker (CRE).

Back then, the cost for the entire weekend was +$600 for full access.

Yes, they had good seminars, panels, and key note speakers.

I learned a lot about what I already knew.

I tried very hard to meet and begin relationships with national credit tenants, landlords and investors.

To this day, all that work added up to $0 in earned commissions.

So, when I see an article like this: Six Take Aways from ICSC Las Vegas, I wonder why I ever went in the first place.

The Meet & Greets (that I was invited to) were nice.  Since I live and work in Las Vegas, going to a casino wasn't or didn't have the same thrill to it as for those who wandered here to represent their companies - and then find themselves lost in the shuffle of the gaming floor.

I'm sure going to ICSC is beneficial for the representatives of the various companies who regularly attend.  But, when you are a CRE Broker, it's a hard time to even get them to even press flesh (get a hand shake); get some one on one face time (exchange business cards); and/or even interested in doing business with you (because they do their own real estate deals; OR, they already have their real estate being handled by a national real estate firm).

So, I take articles like his with a huge grain of salt.
I don't even go anywhere near the Las Vegas Convention Center this time of year.
(My brother in law works there as a fire inspector. He says it's a mad house.)
But, I keep pressing on phone calls, emails and even try to re-kindle long term (former) clients to see if their last deal we did was still working for them.

I'm moving on without the cost or effort it takes to attend ICSC.

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!

Tuesday, May 1, 2018

I'm leaving on a Jet Plane...

Wish Us Luck!

The wife and I are heading off to London (for +/-48 hours); then on to a two week European Cruise.

At the last minute, yesterday, I received an offer for one of my motel listings. 
Told the Buyer's agent no response until May 17, 2018.

Fortunately, he replied, "Have a Great Trip!"

So, I'll see you all back here on May 17.

Can't wait?

Email me & if I have Wi-Fi access, I'll reply!

(Don't count on it!)

=)

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!

Monday, April 16, 2018

My Internet Subscription Conundrum

It's been about six months now when I first realized that the TV ads promoting certain web sites for real estate are actually killing off the real estate broker business.

Take for example: Realtor.com.

Now, I do not sell houses.  I don't want to.

I sell Commercial Real Estate and it's where I find my solace as a hard working person.

But since those ads have appeared, a light bulb went off in my head that said: "You don't need an agent to buy a home!"

I'm sure you have watched this commercial.  You know the one that has the 'NOT YOU!' tag line.

Realtor.com is saying to a broad customer base that you can find your home on this web site without an agent/broker.

I'm sure Realtor.com didn't realize this when they first thought of the ad.  But I bet they do now.

My problem is that a national commercial property web site has been doing the same thing for years.

I listed several motels in the Las Vegas area and wanted to put them on the web site.
But, I couldn't because I wasn't a premium subscriber.

Huh?

It's three listings!

But out of the three, only one would be available for other subscribers to see -- unless I pay a ransom of $69 extra per month to have the other listings made available for others to see.

AND, if I only want investors to see them, that's an additional cost.

I am calling out "Highway Robbery!"

The marketing person I ended up dealing with tried to say that if I advertised in the classifieds I'd be paying.


Such an ass!

Yes.  Newspaper advertising is expensive and limited.  But, because I am a basic subscriber, I only get limited listing exposure.

And the fact that they hide, hold back or prevent these "Investors" from seeing my listing is unconscionable.

It's the realtor.com scenario all over again.

I told the marketing guy you are killing my business.

Of course, he disagreed.

But, the bottom-line of all of this is GREED.  And, because of this need for Greed, they are killing my business, and every other real estate agent/broker's business as well.

But, since I know more about the Las Vegas market than their web site, you will find out that when you contact me that acquiring that specific commercial investment property will be smoother with my help!

Give me a call to see!

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, March 19, 2018

Commercial Real Estate 101

Recently, I realized that when it comes to real estate terminology, when someone like me comes along and I start to refer to Real Estate investing in terms such as: "Passive" or "NNN" or "Net Leased Property," the person I am speaking with usually will give me that "Look."

You know the one I'm talking about.  That, 'Ah-Huh!' "Look" that signals they are trying to convey to me they completely understand what I am saying! (They usually don't.)

No?

Okay, Let's try this.

"Triple Net!"

No? Don't know what that means?

Las Vegas Sign at Dusk!
How about:

"NNN?"

Still, No?

How about me saying: These types of real estate investments are the most popular type of real estate ownership for investors.

You want to say, 'That's nice!' Right?

Well, just let me state that:

Even experienced real estate investors looking for a better than average Wall Street type of investment product, will acquire these types of properties simply because of their better than normal Return On Investment (ROI).  Unfortunately, most normal people do NOT understand this because these properties are the last thing you would think about when you think about real estate.

Still lost?

Well, let me explain -- No, why don't I summarize. (If you still have questions, you can contact me directly.)

Anyway, when you are an owner of a "Net Leased Property" that (usually) has a National Credit Tenant under a "Triple Net Lease," you simple collect rent.  Your monthly or quarterly responsibility is solely restricted to depositing the Tenant's rent check.   (Well, with direct deposit, it is checking to see if it the rent was deposited.)

Another advantage is that even without a mortgage loan secured by a Note and Trust Deed, you still gain the equity of the property for the time you own the property.  And, the Tenant in a "Net Leased" Property is (usually) responsible to pay ALL of the expenses associated with the property. That means, your property's Real Estate Taxes, Insurance and Common Area Maintenance (CAM) are paid by the Tenant.  AND, you will receive (in most NNN Leases) an annual increase in the Tenant's Monthly Rent.  So, as you can see, the longer the tenant stays either through their initial lease or through their options or extensions, their annual rent usually goes up and they will cover your property ownership cost as well.

Too much information?

I tell you what, if interested in learning this, give me a call.  We can discuss this further.

I know that once you have seen the benefit of a regular Triple Net Investment's monthly income, you will NOT want to go back to real estate business as usual.

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

Tuesday, March 6, 2018

Residential Income Houses UPDATE!

It's been more than 45 days since the multiple property owner emailed me to sell his residential income houses.

He at the time said he needed a quick sale.  Four offers later, he hadn't accepted any.

Then, he let slip he was refinancing them. Sigh!  What a waste of time.

Or, so I thought.

But it hasn't been time wasted.  That's because I do my best to make lemonade out of lemons.
I would add some sugar because lemonade can be acidic.

Since I have marketed these properties, I have come across several investors still searching Las Vegas for properties.

Even a Hollywood Comedy Club owner called me.  Okay, we'll see how that goes.

Anyway, the last investor looking questioned the higher than normal income for several of the properties.

He actually hit the situation on the head with: "Are these properties where the tenants are renting rooms?"

Yes!

He said he's been down that path before and it usually doesn't end well.

You see, in Las Vegas, as is many other urban cities around the nation, Landlords of SFR's or small multiple unit buildings, find that they can rent out a bedroom with the hall bath and kitchen being a "common area" for more money by the bedroom.

My owner client went one better: He'd install a wall blocking off the living room and make that another bedroom.  More money!

Of course the bedroom with the attached bathroom paid the most monthly rent.

But, even in my middle class neighborhood, there are several houses that I know (no proof) are being leased out in this manner.

Is it legal? NO!

But, they do it anyway.



It's because instead of getting $900 or $1,200 per month for the 2 bed 2 bath property.
They get $500 per month per bedroom - and more for the bedrooms with the 'private bath!'

Sounds like a money making deal, right?

Well, I wouldn't rent there.  But, that's just me.

So, cash buyers!  Interested in earning +/-$170,000 per year owning a few multi-tenant properties?

Just remember: You will have to be a cash buyer for this.

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, February 6, 2018

No Tell Motels For Sale!

To every Las Vegas Loving Gambler!

Placing chips on a table or coins in a slot won't give you anywhere near the Return On Investment (ROI) that a Real Estate Investment should bring.

I'm NOT saying investing in Las Vegas Real Estate is easy.  Far from it.

But, the ROI will be (Not Guaranteed) better than making a wager at one of our fine Las Vegas Strip Resorts.

Anyway, there are 3 Motels available for sale and they could be acquired for +/-$10 Million!



That's three properties with 123 units located NOT ON THE STRIP!

These are non-gaming properties and they are fully functional as we speak.

Interested in the details? email me.

If you want to acquire a Nevada Gaming Property, send me an email, too!

I have one listed.

More later...

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 15, 2018

David, I need you to sell my Rental Houses!

If you have been a long time reader of my blog, you know that I concentrate my efforts on Commercial Real Estate.

Why?

Because, it's less emotional.
(I had grown tired of the wishy-washy buyer who wanted the mansion for $100!

Also, the home buyer who wanted to squeeze 10 pounds into a 5 pound sack.

As much as I tried to guide them, they never qualified for anything -- nor listened to reason.

Anyway, about 10 days ago, a client who owns +/-50 rental properties, emailed me asking for my help.

I once had one of his motels listed for sale, but when a certain Downtown Las Vegas buyer ran out of money, that went bust.  (I lost his listing.)

Well, here it is 4 to 5 years later and he now wants to sell 8 of his properties.

Since I don't do residential property, I had a residential agent run comps for me.
I was going to co-broker them with her, but when I met him to show him the comparable sales, he then just wanted me to find a buyer.

Okay.  (What's the catch?)

Turns out he just needed some cash (hopefully for another purchase) and thought these 8 would generate the most value. (He was right.)

So, I have a Fourplex, a Threeplex, five SFR's and a condo available for +/-$1.5 Million. I think they are a bargain.

The upside is they generate +/-$134,000 annually in Gross Rent.

So, is there someone out there (who's qualified) interested in becoming a landlord?
Anyone desiring of earning a passive 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!