8% Cap Rate in Las Vegas? Sorry, They are All Gone!

Last June 2014, I wrote this blog because I was being called by "out of state" investors wanting to acquire Las Vegas CRE at an 8% Cap Rate or better -- as one investor told me.

Well, it's been a year now and the Cap rates have actually 'Gone Down!'

This means, that the prices of CRE in Las Vegas are getting higher -- and other investors are buying these properties.

So, once again, I feel I have to re-address the issue:

For several years months now, I have been working with a couple of Buyers who are still searching the Las Vegas Valley for an 8% Cap Rate.

Unfortunately, for them, they are ALL gone.

The 8% Cap Rates went away about two a years ago when Owners began to realize they were getting multiple offers for their property and/or they no longer "needed" to sell.

But, Not all properties are in such a rosie position.  Several Owners that I know are still struggling to make their loan payments and are still upside down at the end of the month.

But, when you come to Las Vegas expecting a steal, and you find out that a 7.5% Cap Rate is the best you are going to do, then, you shouldn't be wasting my RE Broker's time.

Walgreen's across the US are going for +/-5.5% Cap Rate.  Here in Las Vegas you might be the high bidder at a 6.75% Cap Rate.  But, IF you think an 8% Cap Rate should do, you will be out of luck.  There are no Walgreen's in Las Vegas selling for an 8% Cap Rate.  AND, you are foolish to be thinking that for any property in Las Vegas right now.

IF you are truly interested in acquiring a Las Vegas NNN investment, then contact me and we'll start the search.  But, 7 or 7.5% is going to be the the best sales price.

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

Self Driving Cars! Here they come, Ready or Not!

Whether you are ready or not, self driving cars are coming.

The set back is, at least in California and Nevada, a person MUST be sitting in the drivers seat!

I don't think I am ready for this, because I can barely sit still in any other seat in a car anyway.  And, Yes, I am a back seat driver.

This control while driving has been and will probably be, for the rest of my life, a mental -- giving up of control while driving -- problem.  So, relinquishing control over driving my car to a computer, is one of those "things" I don't want to do.  Sorry.  But, I like driving.  I like pretending I am always in a race.

So, please enjoy the self driving accident story below -- even IF the self driving cars were NOT at fault.

http://www.usnews.com/news/business/articles/2015/05/11/ap-exclusive-self-driving-cars-getting-dinged-in-california

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

Retired NFL Players Go Broke/Bankrupt within a few years of retirement!

I have written about this subject in previous blogs before.  And, I find this to be a crying shame.

After earning such a large sum of money in such a short time span: How do players end up broke or bankrupt?

My other question is: How do I reach these young men and try to educate them to NOT spend every dime they earn on intangible assets that lose value over time?

I realize that the athletes families don't help much because they are expecting (in some cases demanding) a lump sum payment for just being related to the athlete.

But, I still say, the best way to handle a greedy relative is to just give them an income rather than the lump sum they are demanding.  (And hiring a strong financial planner is the best way to go.)

http://fivethirtyeight.com/features/theres-a-difference-between-broke-and-bankrupt-for-ex-nfl-players/
(You may have to copy and paste in your browser to read.)

The end result of this, is pretty sad.  But, IF the athlete would contact me, I could show them how acquiring an income property could help them pay incomes to the greedy relatives of theirs.

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

Real Estate Investors! Banks now trying to use auction process to increase market value of their REO's!

For some reason, Banks are now using the Internet auction process, in an attempt to sell their REO's.

The bad news for the banks is that they will be dealing with the same stubborn buyers who feel that the current asking prices are too high.  And, that bringing the property to auction will NOT increase the value of their REO holdings.

However, whether the property "Sells" at auction or not, the stronger banks are going to hang in there tough and continue to focus more on the maximum value they can get for their properties through this process.

Recently, one REO property I had been watching, did sell through the auction process for slightly more than what it would have sold for through the normal real estate sales process.

What this tells me is that this property's current value -- for example -- is roughly $4 million.  Bringing the property to auction, still only made the property worth the +/- $4 Million.  (Just so you know, there were no comparable sales or any other evidence that would have made this property, overnight, increase in value at all.)

So, what can I do?  The only thing I can: which is to tell the Listing Agent or Owner, “I can get you an offer for "X" amount for your property.”  The Agent or Owner usually replies that they can find a buyer for their price.  Unfortunately, my only reply is: “Good Luck!”

  

(To give you some background information, several years ago, I sold a client’s last owned shopping center in which I was able to get him the highest price per square foot for a shopping center in Las Vegas at the time.  But, since that was a few years ago, he’s (conveniently) forgotten that fact.)

So, a fellow property owner, who knows little or nothing about the declining market area they are in, “thinks” he can get someone from out of the US to badly overpay for my client’s property!

The unfortunate part of this is that this is starting to happen in reality.  Last year, a Chinese investment group overpaid for a Walgreen's located on the "Strip."  Now, there are better valued properties around the entire Las Vegas valley that are worth looking at.  But, as with most investors outside of Las Vegas, they only think of Las Vegas as a Resort lined “Strip” of land.

But, if you investors would open your minds and wallets, you will find -- to your surprise -- good deals still here but outside of the “Strip.”  And, the investor that decides to believe me will be one happy camper down the road.

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

Chewing Out the Local Managing Director of a National Real Estate Firm for Lying!

I have been sitting on this for several months or so. I wasn't sure how I wanted to present this.

Anyway...

A while back, I was trying to get information on a property that was listed with a national real estate firm here in Las Vegas, NV. The agent steadily would NOT return my calls; nor even reply to my email requests.

So, I decided, since it was a bank owner property, to resend an email to the agent, and include a cc of the message to the bank asset manager so they could see I was interested in helping a client buy the building.

Not one day later, the managing director of the national real estate firm calls me to say that I had violated the law in contacting their client.

Now, I know that this was a lie, but he insisted that contacting a listing client was in fact a violation of Nevada law. (It isn't.)

I said, I did that because "your agent" refused to return my call or reply to my email.
He said, his agents were busy and didn't have time to return "non essential" inquiries.

Unfortunately, this is where I lost it. I chewed him out with such vulgarity, I can NOT recite the words here.

Paraphrasing, I called him stupid, unqualified to lead, and a LIAR! I did NOT pull any punches.

Now, IF you as a real estate agent or broker are going to lie to me, be ready for a full force retaliation. OR, just don't lie in the first place.

As far as I am concerned, this local office of this national real estate firm, is full of self righteous, arrogant, agents who think that double ending deals should be the only way to sell real estate. And, IF they happen to have another local broker on the deal, it is beneath them.

Now, I moved to Las Vegas in 1994, I did interview with this company way back then, and, I decided that it was NOT right for me. (I don't like being pigeon holed into doing only one aspect of real estate.)

So, on this transaction, I eventually found another property nearby which my client bought. And, as far as I am concerned, the managing director and most of the agents at this one national real estate firm can kiss my....

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

Attention Athletes & Celebrities! Net Leased Investments Help Soothe Relations with Greedy Parents/Relatives!

Now, I understand what Phillip Buchanon was going through.  His Mom demanded $1 Million for reimbursement for raising him.  This in itself is pretty sad.

However, there was a better way of paying her back for supplying him with food and shelter while he was growing up.  He was smart to NOT give her the $1 Million directly.  Instead, he bought his Mom a house.  However, he should NOT have even done that.

What he should have done was acquired a net leased property, and out of that monthly rental income money that he would receive, just paid his Mom a monthly paycheck.  Of course, she would have had the usual tax deductions from the payroll check.  And, his Mom -- being an unsophisticated investor -- would have complained about that.  But, in the long term, his finances would have been pretty steady -- given the history of NNN investments the last ten years.

Unfortunately, this is NOT the only case of family/relative greed ever.  Many, many young athletes/celebrities want to do right by their families when they are suddenly thrust into the world of high income through professional sports draft processes; or, even if they have sudden financial success in just about anything; such as: suddenly having a higher income because of a song that sells millions of copies, or a movie that explodes at the box office.

Usually, regular life goes on after these events.  And, for most, their life usually doesn't change with a song, or movie, or a sports drafting process.

But just in case, you need to have a back up plan.  Because this is where you will find your true friends, loving family, etc.

Once the sudden financial success has happened, you should then contact some one like me, a real estate broker, and we move forward with the acquisition of a NNN Investment.  This purchase should secure that financial gain you just received -- as best it can -- and then you start earning the passive monthly income.  From this acquisition, it should help you secure your standard of living and help Mom with hers.

The downside is Mom will have such a mental focus on receiving that one time $1 Million payment, she will be upset that you have decided to give her the money one month at a time.  But, you have to understand that to give her a lump sum $1 Million, she will most likely spend through it in little to no time at all.  And, have nothing to show for it in the end.

And Draft Prospects, with the NFL draft just around the corner....

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

Even with 200 Store Closings, Walgreen's should remain as a good NNN Investment!

I had to re-read this article twice; and then double check with another news source.  But, after all that reading, I decided that Walgreen's should stay as a good NNN Investment given that the "new" Owner of Walgreen's "Boots" from the UK, is doing what all company buyers do: cut out the fat to make the profitable Walgreen's more profitable.

Does this mean that the store you just acquired or were thinking of buying will remain open?  I don't know.  All of us will have to wait to see the "list."

Anyway, here is the article I read and then re-read.  (Just copy and paste in your browser to read.)

http://www.wsj.com/articles/walgreens-posts-higher-earnings-expands-restructuring-program-1428579564?mod=WSJ_hp_LEFTWhatsNewsCollection

More later -- as it unfolds in front of us.

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

Dumb Owners who think they know more about Real Estate than an Experienced Broker!

I have debated with myself for more than a week on this topic because I didn't want to insult a good client.

However, after many days and nights of thinking about this, I have come to the realization that the bad client involved in this has never had any respect for me as a person or my profession in general.

Since the bad client has bought and sold several properties through the years, he "thinks" he knows more about real estate than anyone else.  Even though, I have +/-23 years of experience in real estate and loans.  He may have +/-10?).  And, just because he has bought and sold several properties through the years, he has only asked me to help him maybe once -- and then, he was such a bad client, I vowed to never help him ever again.

Well, the good client who has trusted me through the years came to me a couple of years back and asked me to help him and his partners with a small shopping center they own in Las Vegas that they were upside-down on.

I said I'd give it the 'good ole college try!'

Leap forward up to a few weeks ago, my listing on the property has expired.  Now, I had suggested to the partners that they should try to have their loan bought by an investor I know.  You see their loan, which was originated by a bank, was acquired by another lender -- who bought the loan from the bank a few years ago at a large discount.  The partners do have some money to their names and the bank just wanted to remove the loan from their books to strengthen their FDIC position during the economic downturn.

However, the 'new' lender assigned an asset manager at that time to this loan.  This asset manager turned out to be a real 'jerk.'  He was going to make these men pay their loan off in in full to get out of their loan which they had all personally guaranteed.  Now, when a bank sells a loan, they usually do NOT sell the loan at face value.  They usually sell it at a discount so they can get the debt off their books. (This is another topic I can approach in the future.)

Anyway, after a year of me trying to convince the 'jerk' the property wasn't worth what the loan value/payoff was, the lender assigned another asset manager to the property.  Now, the 'new' asset manager was amendable to selling the loan to an outside source.  You see, I found an investor who I have worked with in the past -- and who has experience buying and selling real estate loans -- to contact the new asset manager to negotiate a loan buy.

Now, I tell my good client, I found someone to acquire their loan.  I tell him the plan and, then they could; 1) deed the property to the investor; or, 2) pay the investor off (plus a handling fee) and they would own their property free and clear and their guarantees would then be void.

Anyway, this investor made an offer to buy the loan, He was waiting for a response from the lender. When he hadn't heard in an appropriate amount of time, he called the 'new' asset manager.  The investor was told by the 'new' asset manager, he was negotiating a loan pay off with the current owners. I was surprised to hear this.

I immediately called my good client and asked him what was going on?  He said that the bad client who was also a partner had suggested that they handle this themselves and that they don't need an outside intermediary to buy the loan for them.

My good client told me that the bad client had suggested that they offer more than what the investor was offering.  I asked my good client: "Why would you do that?"

The good client replied, 'that the (bad client) felt that, that was more of a fair settlement on the loan and he didn't want the investor (whoever it was) coming back at them on the guarantee. (Does this make sense?) The investor was doing me a favor and he was going to void the guarantees once the deal was done.

After all of this, I am still waiting to hear IF this is going through.  The investor is upset because he now thinks I was using him as leverage for the partners (not true, since I did NOT know they were going to do this) and he is refusing to help them ever again.

And the bad client, who is a short sighted business man, is now on my never, ever help ever again for anything list where I should have kept him right from the beginning.

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

There is still a Small Casino For Sale in Las Vegas, NV!

Recently, my web site has been popping up on searches for 'Small Casinos For Sale in Las Vegas.'

True, there are a variety of small casino properties that are restaurants, bars, taverns, sports bars -- all with gaming -- that are for sale. However, there is only one actual small "Casino" that I know of that is "For Sale" in Las Vegas.

The owner wants $5 Million. It is a +/-5,000 SF building, on a 1.35 acre lot, just off a major Freeway and located on a high traffic street. It is surrounded by national credit tenants, multiple roof tops and Class A type Office buildings.

And, according to the owner, that is the only information he is willing to disclose without a potential Buyer providing him with their qualifying information e.g. Banks statements, proof of funds, etc.

And, regardless of the business' financials, the price is the price. Not negotiable! No financials are required to verify or argue that the property is worth more or less than his asking price.  OR, that an appraisal MAY or MAY NOT justify the selling price.

WHY? (you may ask.) It is because this location has a "Grandfathered Unrestricted Gaming License." Which means to the untrained eye, that the local municipal government body is no longer giving those out. AND, any alteration to the existing property will require upgrading to the "new" codes. Thus, elimination of the "old" licensing status forever.

So,...IF interested...

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

My Birthday Horoscope!

Yes.  March 21st is my Birthday.  So, I wondered just what the Stars had in Mind for me today?

"You've got an edge when it comes to financial, legal or medical matters. Focus on what you want to see transpire and make it so. Luck is in your corner, so don't hesitate to ask for what you want. 3 stars"

Okay! What I want is my deal on the Fontainebleau Las Vegas to go into escrow and close!

We'll see if that is in the stars!

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

While Americans complain about Taxes, Foreign Investors are beating them to the Las Vegas CRE Punch!

Via my web site and other real estate sites that I have subscribe to over the years, I have been approached by many Foreign Investors -- whether Asian or European -- looking for a good investment because as we all know the European and Asian economies are just as bad as ours -- IF not worse!

Most of the Foreign Investors complain about the taxes they have to pay in their respective countries. One Asian investor told me he just wants to get a better value for his money.  He said he has to pay 52% of his gross income as income taxes.  By the way, he says his country doesn't have deductibles.  So, his income tax IS 52% of his income regardless of how the money is earned.

He also said he is surprised at how much Americans complain about their income taxes.  He reiterated that at least we have nice roads and bridges, etc to help get us to where we want to go across the US continent.  AND, he said we can do that (basically) without fear from highway bandits (his words) who prey on travelers.

So, American Investors: Las Vegas does have some very good deals waiting for you to pounce on them.  When Net Leased Investments are going for 4% to 5% Cap Rates in other states, a 6% to 7% Cap Rate in Las Vegas looks pretty darn good.

So, either email or call me to discuss a potential Las Vegas CRE property purchase.

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

Las Vegas Casino Resort Hotels For Sale!

If you have been following my blog, you undoubtedly have seen several postings about Las Vegas Resort Properties that may/may not be available in the Las Vegas Metropolitan area.

Since the Buyer MUST compensate me for my endeavors, I must ask that the authorized signatory for your company be the one to sign a Non-Circumvent, Confidentiality and Commission Agreement.

A telephone call to me telling me how much of a good guy/gal you are simply won't work.

So, as of today, there are three potential Resort Casino Hotels which could be acquired.  They range from --- well, let's just say for the sake of lowest common denominator without giving out  more information than is needed at this time -- it will run you more than $250 Million and they go up from there.

All offers to acquire any of these Resort Casino Hotel Properties will require that you disclose yourself fully; All persons that will be holding 5% or more ownership interests will be required to disclose their complete personal and financial capability; you will be subject to Nevada Gaming Control Board preliminary background check -- and this will also be done by the Resort Owner and it is absolutely necessary you be vetted.  The reason is that they do NOT want to become involved in anyone who may/may not be shady characters.  You do NOT have to be stellar!  You just MUST be honest.

And, they obviously do not want to be barraged by unqualified persons who are only simply looking for proprietary information.  This will NOT be given until/unless you have passed muster of the current Owner's vetting process.

Lastly, IF you even think you may NOT be Nevada Gaming Control Board Approved, then please do NOT waste my time.  You do NOT have to be squeakily clean, however, in terms of criminal activity or other illegal marks on your record, it is best you disclose everything.

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

Never help family with real estate! - Mike Sitren

Twenty something years ago, Mike Sitren was the very first real estate broker I ever worked for.  He was a very short, stout man who was in his 60's.  I soon learned that Mike was well liked by his clients; and NOT liked at all by other real estate brokers.  And, he seemed proud of that.

You see, Mike was always telling me to tell your clients the truth.  And, he was insistent on that. And, I always understood his reason why: When you lie to a client, you disrespect them, he once said.

"It is truly NOT that hard to be honest in real estate.  Most clients already know enough about real estate to get themselves into trouble," he would say.  "Our job as a client's broker is to show them the way to a successful -- hopefully -- profitable sale.  And, the profit was to the client with the broker receiving a fee for rendering service."

I always thought that was the way to go.

Anyway, a few years ago, my very own Mother was selling the last parcel of land that she and my Dad owned on Cape Cod.  My Mom never, ever called me to even ask for my advice prior to putting the property on the market.  (This probably turned out for the best.)  Anyway, she listed with a person she was friends with because he was a "new" real estate agent and she wanted to help him get his business started.  As it turned out, he was very, very inexperienced.

And, I did NOT find out about the sale until one day, while talking to my Mom on the telephone, she started complaining about "how" the transaction was going.  The Buyer wanted a second 30 day extension; and the Buyer wanted a sales price reduction, The Buyer refused to do the "round table close." (Massachusetts for some stupid reason believes only attorney's are capable of closing a real estate transaction.)

Anyway, the Buyer was holding up closing.  I asked my Mom, "Why didn't you just take the deposit as non-refundable and have them put another deposit into escrow to do an extension?"

She replied that she didn't know she could do that.  She said, "It was the Buyer's money."
Then, I asked, "Why are you telling me this now?"
Her answer, "I thought you could help."
I replied, "I could have IF you had included me from the beginning."
I told her it was too late for me to get involved. I would be interfering in another broker's transaction.

I proceeded to tell her to have her "new" agent send the Buyer -- who by now was disclosed to be another RE broker, who was trying to flip the property on my Mom -- a notice that escrow was being canceled and the Buyer's deposit was being forfeited to the Seller.

My Mom said, "She couldn't do that.  She would be in a law suit she couldn't afford."
I said, "Unfortunately, that is exactly what you have to do.  Otherwise, the Buyer/Broker would be "stealing" the equity in your property."

She relented, and the agent sent the notice, The Buyer closed within a few days.

Later, she said, while talking, that, that "trick" worked.  I reminded her that picking the right broker/agent was key to a successful real estate sale.

She asked me "How did you know the Buyer was trying to re-sell the property, I reminded my Mom, that I have been a working Real Estate Broker for 20 years.  You learn "things" as you go along."

Anyway, I knew Mike Sitren was right about helping family -- even IF it is your Mom.  She would have fought me all along and IF it wasn't a successful transaction, I would still be getting the blame to this day.

NOW, when it came time to help my "Know It All Younger Broker"....  I will spare you.

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

Should you invest in Commercial Real Estate or BitCoin?

Since I agree with Warren Buffet: "I don't invest in things I don't understand," I will just say the link to the CNBC article (alleging) that Bit Coin may be a Poncy scheme truly scares me.

I fully understand Commercial Real Estate.  On the other hand, I do NOT understand Bit Coin at all. So, am I surprised to read an article about a Bit Coin exchange company in Hong Kong that might  (possibly) be a Poncy scheme?  The answer is: NO!

Now, Bit Coin might be a real, honest to god currency that I just do NOT understand.  But, I can tell you, I fully understand commercial real estate.  There is Land, Building(s), Easements, and egress access to and from the Land.  And, you have the ability to actually go and stand on the Land parcel in question.  IF NOT fully developed, you could reach down and pick up the dirt that makes up the land.

Bit Coin not so much.  What, where is the value to it?

Anyway, I placed the link below so you may have to copy and paste in your browser to read the story.

http://www.cnbc.com/id/102410095

Between the two, I will take CRE every day over Bit Coin for return on investment.

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

Sleazy People give Real Estate its Bad Rep!

A few years ago, just when I thought I had seen everything in the real estate business, another "Real Estate" person came along and tried to make my life more...interesting.

Two years ago, I received a telephone call from another NV licensed Broker. (To protect me from litigation, I will be using the "Broker" alias.)  "Broker" had written an offer and submitted it to my Seller through an unlicensed person who had decided he could act as a real estate broker for my client. Let's call him "Sleazy Non-broker." (Still following?)

My Seller hadn't -- yet-- contacted me about the received offer, but "Broker" was calling me to let me know that he wrote an offer for $3.7 Million and submitted it to the Sleazy Non-Broker.  This offer was for much more than I had listed the property at.

So, I asked "Broker" to email the offer to me.  I told him that I would discuss it with my Seller.  Contacting my Seller, the Seller said he was going to counter at a HIGHER PRICE!  Taken aback, I explained the situation with my Seller, that from what I saw in this offer, this was a one time offer, and was to be accepted "As Is."

He immediately decided to not accept the Offer. I asked him to meet me at my office because I said there were other language provisions in the offer that were not -- correct?  I also asked him why he was allowing this Sleazy Non-Broker to represent him in Selling his property when he listed it with me.  He said that the "Sleazy Non Broker" was a friend of his.

Anyway, when he arrived, I pointed out that the Offer was filled with clauses that prevented him as the Seller from: a.) collecting the full $3.7 Million purchase price -- even before the close of escrow; b.) prevented him from suing the Buyer IF he as the Seller found anything during the escrow to be illegal or unethical; and c.) the Buyer had a Power of Attorney clause inside of the offer that would allow him to make Seller decisions during escrow.  Huh?

My Seller was upset.  Though he is NOT born in America, he has lived here the majority of his life.  He was upset that his "Friend" -- the so called "Sleazy Non-Broker" had called and convinced him it was a good offer.  And, when I pointed out that the total amount of Money he'd actually be entitled to upon the close of Escrow was $50,000.00 Max!,  He was not amused.  That's correct: Fifty Thousand Dollars!!  I asked him to tell anyone making or trying to submit offers to have them talk directly to me -- ONLY!  He agreed.

And, he was most upset that he would NOT be able to sue WHEN he discovered that he would have agreed to NOT SUE if he endorsed the offer.

I would love to tell you the names of this "Sleazy Non-Broker," and disclose  the supposed Buyers' names so that you can avoid them at all cost.  But, as I said above, I want to avoid litigation.  As for people who know me well, you can ask me at some time in the future quietly.

For "Honest" Information about Las Vegas Commercial Real Estate Investments, contacting David Howes is easy -- either: davidATdavidhowesDOTnet OR at: 70 25 01 93 88 AND you can Follow David on Twitter: @DavidAHowes

Endgame: What there is out there for young athletes to earn during their retirement.

I still believe that a good portion of anyone's retirement should be a CRE property with a national credit tenant in a NNN Leased investment.  This should provide walk around money during your retirement.

http://www.cnbc.com/id/102313811

Copy and paste link in your browser to read/watch.

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

Commercial Real Estate Investment Formula!

About 2 years ago, I wrote this to help first time CRE Buyers learn how to view an investment property.

Going through past Posts, I thought this important enough that it should be run again.

Have you ever thought that maybe you were all alone in a situation; you definitely needed help; but, you were too timid to ask for the help fearing you would be embarrassing yourself for NOT knowing simple information?

It's at those moments you need to remind yourself of the old saying: There is never a stupid question! Especially when it comes to Commercial Real Estate (CRE).

So, in order to resolve any anxiety for those new to the CRE world, I present to you (below) information that is absolutely necessary for calculating annual income from a marketed Net Leased Investment Property that you may be considering acquiring for the annual income.

About a year ago, I laid out in this blog about how to calculate net income from a triple net lease.

A lot of you are lay people and this sounds foreign because it is an area of real estate you do NOT usually get into in your daily lives.

Now net income is also known as passive income.  It's the type of income you earn monthly or quarterly as a dividend or investment. The good thing about this is: You only pay a MARGINAL RATE of Income Tax on this earned money -- and that could be zero taxes!  ***Please check with you Tax Professional to verify this!!***

So, the main goal of this formula is to allow you as a Buyer (Investor) to predetermine the (estimated) annual net income (the rent you receive) from a Net Leased Property that is being marketed either by a Sales Price or a Cap Rate.

Usually, the marketing entity for the property will only disclose what the Listing or Asking Price is; and they will state that, that List or Asking Price is a certain Percentage of Return on the Investment (ROI); or, as it is better known as: Capitalization Rate (Cap Rate).

Now, from just these two disclosures, you -- as the lay person -- will be able to get an idea of just what the (estimated) annual income should be and whether or not the acquisition of this net leased property will "fit" your investment income needs -- or not.

The formula goes like this:

Sales Price times Cap Rate equals Annual Income.  (SP x CR = AI)

For example: $1,970,000 x 8.79% = $173,163.00+/-.

And once you have the estimated Annual Investment Income from the Asking or Sales Price plus the additional disclosed Cap Rate, you can figure out your Sales Price by dividing the Annual Income by a Cap Rate you desire to acquire the property at; OR by a Sales Price you deem as a fair market value.

You take the Annual Income you figured by the formula, and divide by the Sales Price you feel is a fair price or by the Cap Rate that you want as an ROI.

Either way, you can figure out from just two disclosed items the third item in such as you can for the Physics Traveling Formula: Rate times Time equals Distance (RxT=D).

So, this is just a basic formula.  The Actual Annual Income should be disclosed in the current owners Financial Statements kept for this particular investment property.  AND, during due diligence it is absolutely necessary to review those statements carefully when considering the acquisition of a Net Leased Property.  And, most Sellers will NOT disclose actual financials unless there is an accepted offer and escrow has been opened.

So, hopefully, this will help most of you who are not that experienced in acquiring income producing properties.  And, hopefully, you will be at ease when considering the next step in actually making a purchase move in that direction.

Now, take a look at the property information buttons in the right column.  Click on one and try the formula out to see if you can calculate an offer price or acquire the property at a higher Cap Rate!

For more Information about Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR 702-501-9388!
AND AS USUAL, ALL INQUIRIES ARE KEPT STRICTLY CONFIDENTIAL!