Questions surround the future of the Fontainebleau

Questions surround the future of the Fontainebleau

A week or so ago, Paul Joncich, an anchor on Channel 8's NewsNow called to ask if I'd be willing to be interviewed about the (mostly) built Fontainebleau Resort here in Las Vegas, NV.

At first I was hesitant because I truly don't like the way I look or sound on camera.  But, after the wife told me to take my own advice of: "What other people think, is none of my business," I decided to go for it.
Anyway, click the link above for the news story.

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

Downtown Las Vegas Church to acquire Neighboring Property!

After almost a year of going to and fro, a Downtown Church has agreed to acquire it's neighboring property for $1.9 Million.

This church which sits on the NEC of Ogden and 9th will be increasing it's land footprint from .09 acres to .32 acres.  The neighboring property to the south has a +/-3,600 SF store front office building; and, the adjacent parcel to the west has two store front office buildings of about 1,100 SF.

Since most of the sales activity in this area has been completed by the Downtown Redevelopment Project, the church's impact would be minimal.  However, with the acquisition of these properties, the church will be able to service more of the homeless and indigent populous that are an earmark of this east Las Vegas area.  And, this increase in lot and building size will help the church provided better and more food services for the growing food recipients.

Hopefully, we will be able to close the sale by mid summer.

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

The Seller's Downfall from Selling without a Real Estate Broker!

Just recently, a property owner emailed me to say he had SOLD! his commercial Property and he was proving to me he didn't need a Real Estate Broker.

I had in the past tried to get him to list his property with me. But, he knew better than me about what his property entailed. So, I said okay. But I really wanted to see what would happen.

This is always a bad move on an Owner's part. If you are NOT experienced in Real Estate, you will get taken advantaged of.

Even my own younger brother bragged to me a few years ago about: "How easy it was for him to get his real estate license." I then asked my brother, "So, how much money have you made selling real estate since getting your license?"

His answer: "None." And, it is None because he works as a Pharmacist. Unfortunately, he is just like the rest of Sellers: He truly thinks it would be easy to be his own real estate broker.

So, the owner from the above property who said he didn't need me, was bragging in his email about selling on his own property, said: he Sold for: "$800,000."

I asked: "Why did you sell it for so much less than what this very same buyer had already paid for similar properties in his area?"

He replied: "The Buyer had told him they were never going to pay what I had wanted them to pay" which was $200,000 more than what they paid for his property.

I said: "Of course, they are telling you that now. You accepted less! Of course, they are going to say, they wouldn't pay more than what I had gotten these very same Buyers to pay for other properties that were all around him. But, "You decided you didn't need me!"

He reiterated: "I wasn't needed." and "I was making it a bigger deal than it was." Well, it was a $200,000 bigger deal than he realized.

Anyway, I didn't want to pour lemon juice on his wound. IF he truly thinks he did a better job than me, fine. I will move forward knowing he screwed up big time. AND, he eventually will realize this, too.

So, want to sell your CRE property yourself? Go ahead. It's just that I make an honest living with a Real Estate Brokers license and I would never try to do your job just to cut you out of a financial gain for helping me. And, I do it with your best intentions in mind.

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

In Order to Purchase Las Vegas Property, You Need to Know This One Secret!

Not everyone is privileged to be able to acquire an income property in Las Vegas. And, most investors will never know the true secret to acquiring a Las Vegas Investment property because they get caught up in the Large Real Estate Firm scenario.

And, unfortunately, they continue to fall victim to this every time because they don't realize that the Large Real Estate Firm is only interested in their own bottom-line.

I know this because I have worked for large real estate firms.

IF you truly want to acquire a Las Vegas Income Property, you need to contact me.  My goal is and will always be for the benefit of my client. (You!)

I have had "others" come to town, then get a hold of me and ask: "Can you show me properties that you don't have listed?"

My answer is an affirmative Yes!

If you come to Las Vegas and hire me to help you with a property purchase, and you see a property you want to acquire.  AND, it is NOT LISTED, I will do everything I can to contact the owner and see IF they will sell.  It's truly NOT that difficult.  It might take some time since most owners who get unsolicited calls, don't return those calls.  But, I will keep trying until I get an answer for you.

So,...

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

Warren Buffett's Long Term Advice about Investing in Real Estate

This is written by a person who follows his own advice about real estate investing. He ignores Political winds and focuses on the long term return on investment. Advice that has made him one of the riches men in the world.

http://finance.fortune.cnn.com/2014/02/24/warren-buffett-berkshire-letter/

(Copy and paste in your browser to read.)

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

Solid NNN Investments in Las Vegas at 7% Cap Rate!

Since late last year, I have been dealing with several out of state investors searching for popular CRE Investments that they only want to buy at an 8% Cap Rate or higher.

What these investors are neglecting is that the owners here know they have CRE investments worth at least a 7% Cap Rate.

AND, they will NOT sell for higher than that.

So, investors, please take it as the TRUTH that a 7% Cap Rate is a very good investment in Las Vegas whether you believe it or not. Sure. There have been some property acquisitions here at a price that translates to a higher Cap Rate. BUT, most of those have been for properties that went into foreclosure: AND, the banks were tired of maintaining them through the years.

AND, when you have a property with one of the largest gaming companies as a tenant that is guaranteeing the lease through the initial term, you should be jumping on this band wagon and start collecting the annual rents.

One particular property that has had investors turn their nose up at does exactly this. AND, not many Credit Tenants would be willing to do that, either.

Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88

Chinese Millionaires Fleeing China

On CNBC's web site, there is a report of Chinese Millionaires fleeing China because the economy is so bad there.

I have placed a link below so that you can read the report first hand.

http://www.cnbc.com/id/101388620

My suggestion to these fleeing millionaires is to please consider Las Vegas, NV as a place to invest in.  With Las Vegas recovering from the 2008 economic collapse and values beginning to increase, now is the time to take advantage of Las Vegas properties.

So, IF you have any questions about investing in Las Vegas real estate, send me an email and I will reply as quickly as possible.

Contacting David Howes is easy -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88

Local News now Aware of Downtown Las Vegas Profit Prospects!

The article link below finally is giving attention to what I have been saying.  Developers and builders need to pay more attention to downtown Las Vegas because that is where the area growth potential is.

I have six properties listed that could be acquired and then torn down to make room for further development or building expansion.

The problem I have been running into is 'flippers.'  They want to buy at pennies on the dollar and then flip to Tony and make an obscene profit.  I have attracted many of my listings vowing to NOT let that happen to my clients.  Thus, the higher than usual listed prices.

However, I can vouch for the prices because Tony's Crew has acquired property through me at those very same high prices.

Ferguson's Motel SOLD for $5 million
Pete Pan Motel SOLD for $2.8 Million
A Duplex on 11th Street just closed escrow for $500,000!

Of course several properties have SOLD for less.  BUT, the Buyer was Tony's Crew.

Now, the Las Vegas Sun is starting to see the next step that I have been saying for at least two years.  (Copy and pasted the link in your browser)

http://www.vegasinc.com/business/2014/jan/13/clean-slate-reinvent-downtown-las-vegas/

IF more developers and builders would step up, the profit potential of downtown redevelopment would expand and explode.  It just is going to take a little more time than usual.

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR call 70 25 01 93 88 and you can follow David on Twitter: @DavidAHowes

$750,000 and $1.75 Million will get you these Downtown Las Vegas Properties!

Two properties that are in the direct path of Tony Hsieh's Downtown Redevelopment Project are still available for Sale.

These prices reflect the SOLD Sales Comparable for this area.

Tony's Crew have been reluctant to move forward on these.  WHY?  I don't know.

But, IF you acquire these as is, where is, you can be the fortunate one to take advantage of the Flip Mark Up when Tony's Crew does come to their senses.

Both are in the tear down mode.  However, 123 N 9th can be redeveloped into a store front office or a local diner/restaurant/nightclub.

The 109 N 9th Street could be torn down, or rebuilt into a local grocery market, or even a restaurant/bar/meeting hall.

Both Properties were built in the 1940's+/- and do need work.

However, since these are two of the last three privately owned parcels on this block, Tony's Crew will need these eventually.

AND, there is plenty of room for a mark up.

For more Information about these or any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR call 70 25 01 93 88

Happy Holidays to Everyone!

I'd like to wish Everyone a Happy Holiday Season!

And a prosperous New Year to All!

My New Year's Resolution is to get my weight back down to +/-200 lbs!  Wish me, Luck!?

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidAtdavidhowesDOTnet OR call 70 25 01 93 88

Closing Today! on another Downtown Las Vegas Property!

I had a feeling this was going to happen.

I kept thinking that Tony was NOT going to wait until New Year's Eve to close on this small duplex in Downtown Las Vegas to Close this Sale!

AND, I keep telling you "supposed" investors to contact me, so you can buy one of these properties, and then "flip" to Tony!

However, all of you investors are too worried about making a killing!  There's no need to buy so low, you take away any incentive from the current owners to sell to you.

But, you seem to think you know best.  I suggest you come to Las Vegas, acquire one of these properties, and then "flip" at a smaller yet reasonable profit to Tony.  He is going to Buy ALL these properties sooner or later.

I just don't understand the extensive greed you have.

Most properties within the Downtown Projects area of acquisition are acquired already.  So, why not allow the current owners to ability to make some money and then you re-sell the property to Tony -- when he is ready.

Otherwise, I have advised my current Seller clients to sit an wait.  Tony is coming.

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: david@davidhowes.net OR call 702-501-9388

Your Buyer is Not Qualified Because We can't find Him in a Google Search!

A few days ago, maybe even late last week, I get a call from a LA Collier's agent who for some reason has a listing on an Las Vegas property telling me his Seller needs a warm and fuzzy feeling about my Buyer.

At first I laughed quietly to myself.  Then, he dropped a bomb shell saying that since he can NOT find my client via a Google search, he thinks he is NOT qualified to buy the property!

What stupidity!  I know at least a dozen people in Las Vegas, that you would be hard pressed to know whether they are qualified or not simply because of their appearance.  Most of these people are older.  They do NOT have an internet footprint.  And, just by looking at them, you would never be able to tell they were wealthy.  AND, they like it that way.

One which doesn't even have an email account owns 40 properties where he earns +/-$100,000 per month!
Every time I have to get a document to him, he tells me to fax it!  I don't have a fax.  It's passe. And, his daughter is studying Computer science at a well-known Southern California University.  She told me that she has tried to get him to use an email account in the past and he refuses to change the way he does business.

Another former client used to have a contract with the Clark County school system to supply food to them. He has an email.  BUT, he never checks it.  I have to call to tell him that I sent him the information he requested from me.  Once he does check the email, he is okay.

Anyway, NOT every property owner is on LinkedIn.  Not every Buyer has an email account.  Does that mean they aren't qualified to buy?

No!  And unfortunately, I sent this LA agent my clients financial information of the money he has on account in his financial statements.  The client asked for a loan contingency because he doesn't want to put all or even most of his money into one property -- which is smart since the property he made the offer on has a higher than normal rent payment by a national credit tenant.

So.  Why the defiance to my buyer?  I truly don't know the reason.  However, my guess is that since the local Colliers office has a reputation of double-ending deals, that this might be what they are trying to do. However, I do NOT know this for a fact.

In the past, I have gotten other clients from a national CRE company simply because the client asked the agents to find out IF a property on a specific corner -- whether listed or not  -- would sell.
He told me that the agents said that they do not do that.

Which is good for me since, that is one of the "things" I do.  If I know of a potential client "looking" for a specific property, I will try my best to get a hold of the owners and just simply ask a question.

(By the way, my buyer client told me to tell those agents, IF the Seller wants a warm and fuzzy feeling, he should accept his offer and he will get that feeling at the close of escrow. OR, go buy him a blanket.)

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR call 70 25 01 93 88

RE Expert Suggests Buy and Hold Strategy is the Best Way Real Estate Investors Can Make Money!!

Surprised?  I'm not.

Just in case this was NOT news for everyone in the good ole US of A!

Buying real estate and holding it long term has always been the best way to get the best return on your real estate investment.

Now, this may NOT work as well for single family homes and condos.  BUT, in the CRE world, the best return has always been over the long haul.  Buy now; and Sell years from now when the investment has run its course.

When 2/3's of the billionaires in the US can attribute their wealth to real estate, it should NOT make anyone say: Golly, gee wiz!

If you start small and work your way up, one house at a time, or one small real estate investment at a time, over time, the return on the real estate will eventually pay off.

And, for you who are new to my blog, buying Las Vegas real estate does have a long term value increase preset before the 2008 economic disaster.

Most people who had acquired their Las Vegas properties a long time ago, did NOT lose their property because they had so much invested in keeping the property up to date and they did NOT over-encumbered it by a high LTV loan.  Never pay off credit card bills with your real estate equity.  I think it is dumb.

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: david@davidhowes.net OR call 702-501-9388

Las Vegas Value Added Retail Center Just Listed For Sale!

Attention! Investors!

A long time client of mine asked me IF I would sell his Neighborhood Retail Center that he owns in Henderson. I have introduced him to an attorney friend of mine to help him with a SHORT SALE! He wants to sell to be able to get out from under this debt property.

Now, this retail center is in a neighborhood where the City of Henderson has set aside about $1 Billion to help upstart and/or new businesses who will lease in this area.

The upside for the risk taking real estate investor, will be that once this is fully leased up, the Cap Rate could be as high as 13%.

The property has +/-12,700 SF in two two buildings on one 1.53 acre parcel of land. It is currently +/-60% Occupied! With Total Rent being collected at +/-$8,500 that puts the average PSF monthly rent at +/-$0.70's!

This rent number should be higher -- more like $1.00 PSF per month! And, there is room to improve on that with the way the economy in Las Vegas seems to be slowly improving. The other thing is, with the existing leases in their 2nd or 3rd years, rent renewals are going to improve the bottom line as this property rolls along into the future.

The main tenant is the Coin Operated Laundry and a local Mini Mart that competes with the 7-Eleven on the corner.

The Retail Center was built in 2007 and still looks (almost) brand new! The selling price could be as low as $1.2 Million.

There is money to be made but that is the future leasing capacity from the vacant +/-3,000 SF.

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR call 70 25 01 93 88

Downtown Las Vegas is Transforming! Get Involved Now or Miss out!

This past weekend was the "Life Is Beautiful" event that had Downtown Las Vegas full of young dreamers and believers!

Here is the Las Vegas Suns' Katz Report describing the event, the change and its destined forward direction of this area.

http://www.lasvegassun.com/blogs/kats-report/2013/oct/27/life-beautiful-throws-open-door-new-downtown-las-v/

And, here is a Las Vegas Review Journal article about the Then and Now of Downtown Las Vegas!

http://www.reviewjournal.com/news/downtown

Please enjoy!  Then, get together with your investor friends and call me about acquiring property in this area to redevelop along side Tony!

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR call 70 25 01 93 88

IF Las Vegas City Officials were Smart?

That's right!

In my opinion, IF the Las Vegas city officials were smart, they'd offer developers the same incentives that the Downtown Redevelopment Project (DRP) is getting. Now, what I have seen and the impression I am getting is that the east side of Las Vegas Blvd, along Fremont Street could be an area of upscale office and retail and NOT just a party area for First Friday and teen drinking any other weekend.

Tony of Zappos' plans are pretty secret. And he may just be planning this. But, I believe that unless other developers get involved in this area, this is going to be pretty much the same as it has always been.

It is my belief that the need for higher end jobs is the key to getting this area redeveloped properly and it would have a positive affect on existing property values for the current owners in this area.

DRP has been able to convince several property owners in this area their properties are worth less than what has been paid to others in the area before they decided to sell. It's as if they didn't look at the area comparable sales in pricing their properties.

Granted most properties left in this area are low end housing and older homes which most likely need to be torn down.  But, to sell off to one buyer at the buyer's price is fueling a decline in the values.

That is why I have been standing firm in my listings in staying at the list price I have stated to these owners. Why sell cheap? Just because a sale near you was low at $24 PSF doesn't mean that, that is the value of your property. I have also cautioned that just because properties such as the Las Vegas Dragon or Ferguson's or Peter Pan Motels sold at $159 PSF doesn't mean your property is that high either.

But, in reality, another developer needs to step up and get involved. Other developments in this area are necessary to build competition so that the property values will increase thus making the current and future developments more valuable. And that would affect future re-sale prices in this area, too.

I have been marketing my listings to Pacific Rim investors and thus far I have received a lot of inquiries, but these investors are gun shy to pull the trigger. WHY? I ask. My guess is that they fear Tony's bank account.  I know it is NOT bottomless. But there is the rub.

East Las Vegas along Fremont Street has a reputation of being low end everything.  However, it could be a hub for business rather than a play ground for youthful Zappos' Millenniumers. who engage in underage drinking which will continue to be a problem and could set any development back IF not corrected without the Metro Police's involvement. So, IF you are brave and bold, this area of Las Vegas is in desperate need of high rise office, retail and non gaming hotel rooms just as any other well developed city has.

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR call 70 25 01 93 88

Club Owners, Chefs and Restaurateurs Looking at Opening a Restaurant in Downtown Las Vegas?! I have Four Properties!

Earlier this month I received a call from an associate real estate agent who has a client looking for sites in downtown Las Vegas to open their restaurant concept. She has a client who owns and operates restaurants who wants to be in a specific area of Downtown.

I sent her ALL the sites I have listed.  Fortunately, I have two properties in this area she is looking at Listed For Sale.

This got me wondering about ALL the things happening in Downtown where Tony Hsieh's Zappos Company is currently moving into the old Las Vegas City Hall building. He is attracting a lot of attention. And, it makes me wonder IF these business people who are following this are truly interested in moving into the downtown east area OR are they thinking of being in a casino along the Fremont Street Experience.  My immediate concern is: will they have enough foot traffic to succeed at the Downtown east locations?

From my perspective, more roof tops or housing is needed.

Tony's crew, lately, has been acquiring property at what I believe is below the normal or median price for this area.  I have advised my sellers to NOT ask too much IF they truly want to sell; rather ask for just more than the norm and under NO circumstance will I allow them to sell to the flippers.

Hopefully, with this inquiry to you today, we may see more activity in the coming months.

AND - just so you know - the area of the Downtown Redevelopment Project is east of Las Vegas Blvd; US 95 south to Charleston; and Las Vegas Blvd to Maryland Pkwy.  Of course, Tony's crew has bought property outside of this area, so anything could happen.

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR call 70 25 01 93 88