Thursday, April 18, 2013

Bank Lawyers Screwing Up an Easy CRE Transaction

First: I love Lawyers!  My Real Estate office is inside of a Las Vegas Law Firm.

Second: One of the partners of this firm referred one of her clients to me to help them locate a suitable "new" Office location that they could purchase rather than lease.

Now this!

I wrote a purchase agreement for an REO property in the NW of the Las Vegas Valley. Since the Buyer is the lawyer's client, I had her negotiate the Purchase Agreement. She did keep me in the loop and to my surprise, the purchase agreement negotiations took 70 days!

Now, in defense of the Buyer's Lawyer, this length of negotiation put us behind the timeline for the client's lease termination date.  From the beginning -- and the Buyer's Lawyer did a great job getting replies and responses back to the bank's lawyers -- the Bank's Lawyer's couldn't care less about the Buyer's need for speed.  So, the Bank Lawyers' took their sweet time and did NOT work fast at all.

That leads me to this part of the timeline where the Buyer has to decide IF they will continue on with the transaction; OR, cancel the current escrow so they do NOT lose the Earnest Money Deposit of $10,000.00.  And, that feasibility date is TODAY!

This AM, I get a call from the Buyer's Lawyer.  She just found out that the Parcel Map needs more time to move forward.  Apparently, the Title Commitment can NOT be issued without the Parcel Map, the SBA Loan can NOT be funded without the Parcel Map, and the Parcel Map can NOT be approved by the City of Las Vegas simply because the Ownership Entity on the Purchase Agreement is NOT correct! What?

That's right. When I first submitted our Purchase Agreement to the Seller, I put the ownership entity name that is recorded with Clark County.  When they countered and we began going back and forth, the Buyer's lawyer and I assumed the Seller knew the correct name that they hold title to for the land.

Well, since the ownership name recorded with Clark County is different than the name the Seller put on the Purchase Agreement, technically we do NOT have an executed agreement to buy this particular parcel of land.

Unbelievable!  The Seller Bank doesn't even know the ownership name of the only property they have here in Las Vegas, NV.

So, now, we have to spend the majority of today getting this figured out.  And when working with a large bank who's lawyers truly don't care, it is problematic.

I will follow up with an update as soon as I find out how this is resolved.

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

Tuesday, April 16, 2013

The Internet will kill Real Estate Broker/Agent Jobs

Okay, I know that is a harsh headline. But, think about it.

In the last 20 years, how many jobs are now gone or have been replaced completely by a computer. One I think of immediately, are the toll booth collectors at the Golden Gate Bridge.

So, lets say we looked ahead by a dozen -- even 20 -- years and discovered a wide variety of jobs simply have vanished off the earth over the course of that span. Can you predict which jobs will be most definitely gone? And, how many jobs will be extinct in 10 years? 20 years?

That is why I do believe that the position of a Real Estate Broker/Agent will have dissolved completely down to maybe a hand full or even completely gone altogether. And, I believe this will happen in 20 years.

In the last 35 to 40 years, since computers were introduced in the 1970's -- and especially since personal computers in the early 1980's -- just how many jobs are now and forever extinct?  IF you think about it, there are quite a few.

Robots have taken over most manufacturing/assembly jobs. Computers are also the ones spinning numbers, too. I do NOT like doing my own taxes myself. I have always depended on a tax professional handling that. But, in the future, that just might be what even I have to do.

And computers for accounting firms and other related financial industries are finding that computers -- IF programmed correctly, will go forward uninhibited forever.

And, as we speak, computers are already putting out more and more movies. Even actors will never have a chance to grace the big screen again with their smiles. What movie producers want will be CG stars that they  control and will never, ever have to pay them a single cent in royalties again as actors will have their job and voices taken over by a  computer generated personality.

Police have grown used to computers helping them solve crimes. IF these computers get any better, career criminals are domed. And there will be even less need for a patrolman. You will be caught on video somewhere. So, no one will ever be able to get away with anything at all, at any time because the computer doesn't need any down time.

The only good thing is in 20 years, hopefully, I have saved enough money; invested enough in Real Estate, that I can live comfortably for the rest of my life on the monthly rents I receive.

It's sad, but is going to happen.

So, before that all happens, let's get you into a nice real estate property that will help you earn money money well into the future.

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

Sunday, April 7, 2013

Yesterday, while talking to a Realtor...

As most of you know, I am NOT a Realtor (I guess I am supposed to insert a copy-write symbol here. But, I don't know how.)  By the way: A Realtor is a member of the National Association of Realtors.

Anyway, the Realtor asked me WHY? I don't hang my license with a large, national, real estate company.  He said that I would get more business, thus I'd make more money, being with a national firm.

Fortunately, I did have my Real Estate Broker's license hung with a large national firm at one time. I did learn a lot about CRE during this period. BUT, I told him I was weary of only receiving about 35% of the earned commission fee when I was doing 90% of the work.

Now, there's no need for me to bash national real estate companies, so I will let the following experiences I have had be your guide to your own judgement of me.

While at this national firm, I was once called by a secretary there, "The hardest working broker she ever saw that earned so little money."

That sounds really bad, doesn't it?

But it was true. I grew up knowing that IF you went the extra mile for a client, your effort was always noticed by the right people.

So, as an example, a large national apartment company executive once said to me just off the cuff while discussing Las Vegas apartment locations, "David, you are the baseball player that runs out the ground ball to second!" Really? Me? I don't even like baseball. (I know I am a sick puppy of a man.)

Another example, is a local Las Vegas convenience store owner who said to me, "I picked you to sell my under performing stores because you are the only real estate broker who didn't lie to me."

(At first, I thought he was joking?) Then, I remembered that during the listing appointment, I wondered why he was asking me questions that I thought he should have known the answers to.)

Then, there is the largest real estate deal I have ever been involved in: Konami Gaming.

I received a call from the HR VP of the local office. She asked that I come over to discuss Konami's plan to move to a larger location. After an initial meeting with the local office President, my next meeting -- to my surprise -- was with the Konami Gaming CEO.

We started out to look at buildings in only one area in particular just south of McCarran International Airport. And as we drove, we "looked" at various buildings. I soon got the impression he had already seen these before -- at least from the outside.

I did end up -- the last building on my list which he had NOT seen -- showing him my only listing in the area.  And, while on the way to the building, I asked him IF Feng Shui was going to be in integral part of his decision making process.

He looked at me incredulously. I felt doomed. (I thought I had just blown the deal because he was Japanese and Feng Shui is Chinese.) To my relief, he said yes. And asked me IF I had knowledge of Feng Shui? I told him I only had a limited knowledge of it and I told him the little that I could remember.

As we toured my listed building, he took note of the items about the building that were NOT Feng Shui.

Later, after our viewings were complete, and I was driving him back to his Las Vegas office, empty handed, the Konami CEO said that out of the six brokers he drove with to look at property, I was the only RE Broker to ask him the Feng Shui question. I now knew he was impressed with me.

And since I felt like I didn't find an appropriate building for him, I stopped on a vacant parcel that fronted Sunset Road and Bermuda. This parcel was large enough for a +/-115,000 SF building; and, only a tree lined street obstructive the view of McCarran International Airport. This is when I asked the CEO IF building his own building to his specifications would be a more economic alternative for him. Looking at the view, he replied he'd talk to his board.

It only seems now like it was a few days afterwards when the HR VP called me and said the CEO was impressed with me, my knowledge and my suggestion to him. She was calling to arrange our next meet when he returned to Las Vegas from Tokyo so we could start the paperwork for a Build to Suit For Lease.

Long story short (Too Late?), that's what they did.  (Recently, they enacted the Purchase Clause in the lease and they now own the property.

So, IF you don't know me, I may seem aggressive. IF you do know me, I may seem bossy. AND, I really do NOT like baseball. (Boring.)

But, as the previous secretary said, I try way too hard for my clients for them to NOT work with me.  And IF you don't work with me, you will never know just how hard I really do work for my client's business.

And if you do decide to let me work for you, you will find out why I don't want to be just one of many when I stand out so well on my own. AND, I do NOT need the (artificial) backing of a national real estate firm to be successful.

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR 702-501-9388!