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!

Small Casinos for Sale in Las Vegas!

When some of you search for a Las Vegas Casino, you have come upon my web site. What a lot of you don't know about casinos is that you as a principal must be qualified by the Nevada Gaming Control Board to even own a Nevada gaming property.

And, this concerns me when I see that my web site has been popping up on searches for 'Small Casinos For Sale in Las Vegas,' because, most of you potential gaming property owners will NOT qualify to even own a casino property here in Nevada.

Now, there are a variety of small restaurants, bars, taverns, sports bars in and around the Las Vegas Valley -- all with gaming -- that are for sale. However, there is only one actual small "casino" that I know of that is truly For Sale in Las Vegas.

As most of you are aware of, the true "casino" properties are on the "Strip" and in Downtown Las Vegas.  There are several "local" casinos in outlying neighborhoods, but these are owned and controlled by large local casino companies. And the small local casinos -- not on the "Strip" -- will still advertise themselves as a casino because they do have slot machines. And, they will call themselves casinos when in actuality, they are legally known as "taverns."  These only have "restricted gaming licenses."

However, I do know of a local "grandfathered casino" property that has an "unrestricted gaming license" where the owner will sell, but his sell price is $5 Million!  It is a +/-5,000 SF building, on a +/-1.35 acre lot.  It is 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.

So, there is everything about this property that needs to be disclosed.  Any further information requires a Non-Cir Agreement which is located under the Las Vegas Casino Information Button on the right side of this page.

And, the price is the price. According to the owner the price is: "Not Negotiable!"
And, whether you agree or not, you must disclose your financial capability to even receive the property's financials.  And, the owner says: His business' financials are what they are and he will NOT argue that the property is worth less than his Selling Price. OR, whether or not the appraisal MAY or MAY NOT justify the selling price.  The price is the price.

WHY? (you may ask.) It is because this location has the "Grandfathered Unrestricted Gaming License." Which means to the untrained eye, that you can have table games (blackjack, roulette, craps, poker) and the local government body is no longer giving "unrestricted gaming licenses" out any more; AND, any alteration to the existing property will require upgrading to the "new" codes. Thus, elimination of the "grandfathered licensing status forever.

So,...want more information? As i mentioned above, click on the Las Vegas Casino Information button, print out the Non Circumvent Agreement, sign and email it back to me. Then, I will send you the property information.

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

"If you want to make Money in Las Vegas, Stay Out of the Casinos!"

And he is correct.

Years ago, when I first moved to Las Vegas, a met with a broker who owned a local real estate firm. It was NOT affiliated with any national chains or franchises.  It was strictly a local company.

As we talked and I was trying to make up my mind about where to hang my Nevada Real Estate broker's license, we were discussing the topic on visiting the casinos. During the discussion, he brought up the fact that too many real estate agents would cash their commission checks at the casinos and walk away from their adventurous gambling spree broke once again.

And, to emphasize his point, he wrote the word casino on a letter size pad.  He then circled it while asking the question: "How do you make money in Las Vegas?"  He paused for a second to let me absorb the effect.  I was stunned and confused.  I was brand new to Las Vegas and the city still had the allure of gambling riches in my mind.  (This is the mind set of the majority of Tourists who visit here.)

I remember starting to mumble something, but he cut me off with the answer: "If you want to make money of Las Vegas, you stay out of the casinos!"*  He then struck a line right through the circle as in the international Do Not Enter Sign!

Point taken.

This is when I first heard the fact that the casinos are NOT built on winner's money.  The only entity that wins is the casino owner(s).

I have remembered that ever since.  And, because I have that thought deeply in-bedded in my mind, I have learned to ignore the casino allure.

However, there is money to be made in Las Vegas.  It might be a real estate property where you are only earning a 6% Cap Rate, but you are more likely to make money on that, than gambling.

A former casino manager (for 30 years) I have become friends with, attested to the fact that only the casino wins at gambling -- every time.  He told me one time that poker -- as in the World Series of Poker No Limit Texas hold em tournament, is 95% luck.

He said that the most successful poker players are just able to win 51% of the time.  Sure, that one time is a million dollar jackpot.  But, most are behind on their bills most of the time -- he said.

So, are you still thinking of coming to Las Vegas to gamble?  As I have stated above, the best gamble in Las Vegas right now is Commercial Real Estate (CRE).

Sure, the Return on Investment might be marginal as in a low Cap Rate, but IF the tenant is a National Credit Tenant, your winnings will still be greater then at the casino.

*This applies only to those NOT qualified to BUY a casino.  IF you can BUY a casino, then, you would more likely to be dealt the winning hand.

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

Happy Holidays! And a Profitable New Year to You!!!!

Happy Holidays! to ALL and let's all have a profitable New Year!

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

HAPPY THANKSGIVING TO ALL!

I just want to wish ALL my blog followers a Happy Thanksgiving!
It is one of the better American Holidays the entire world can enjoy!

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

Another Celebrity-Athlete goes bankrupt!

Okay.  This is slightly different than a story of Not investing properly or making bad investments.

This is a direct result of Not realizing that those close to you can make very bad decisions when they have access to or you have given them large sums of money.

Unfortunately for Jack Johnson, his parents were the ones with little or no investment knowledge or sense.  AND, the fact that Jack had a large sum of money and they had access to it and spent foolishly, he now finds himself in bankruptcy.

(Copy and paste in your browser to read.)
http://www.si.com/nhl/2014/11/20/jack-Johnson-bankruptcy-sad-but-common-story-for-athletes

IF Jack had only given them Income instead of access to his money directly, he would be in a better financial position today.

Advice to me years ago, still stands today.  IF you want to do something for your family money wise, then give them income, DO NOT EVER give a Lump Sum and NEVER give them control over your bank accounts.

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 101: Net Leased Investment Formula UPDATE!

Every so often, I begin to wonder what else I should post about.  Then, as I run through past postings, I run across a post that in truth could be re-posted without any redundancy.

Anyway, below is a past post that still rings true for today!

Please enjoy!

Have you ever thought that maybe you were all alone in a situation; you definitely needed help; but, you were too timid to ask because you feared 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 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 smaller amount in Income Tax on this earned money.  AND, you do NOT pay social security or other IRS types of tax.  ***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, you can take a look at property information in a different light. Get some property information and try the formula out to see if you can calculate an offer price or a price that would enable you to acquire a property at a specific Cap Rate!

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

Fontainebleau Resort Las Vegas!

About a week ago, I wrote a Purchase and Sales Agreement for the Las Vegas Fontainebleau.

Since last Friday, eight days ago, the company's board has been meeting, to discuss the merits of whether acquiring this property would be beneficial to their company.

Since then, the President/CEO of the company and I have emailed each other with answers to the board members' questions.

Hopefully, I answered their questions which will make them want to proceed with the acquisition.

Now, I am sitting on pins and needles awaiting the board's decision whether they will authorize the president/CEO to submit the offer I wrote for them.

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! CRE can secure your future, too!

Recently, there was an article about Roger Staubach, Hall of Fame Quarterback who helped the Dallas Cowboys win Super Bowls back in the 1970's!

Now, I do know a little bit about Roger personally. I remember him as a very good Quarterback who made a good living during his Hall of Fame laden career.

And, I knew Roger had invested in Real Estate early in his career and made a name for himself as an outstanding real estate broker. What he is known for today is being a very successful broker who built a company from scratch and sold it for millions a few years back. He did NOT strive for an extravagant, a high flying lifestyle, because he knew that living that way would require him to continue earning a certain level of monthly income that he knew he could NOT maintain.

However, he probably did receive great financial advice early on, which allowed him to maintain his income; or, he refused to believe that his current level of income would ever stay the same. Either way, he set out to secure his future, his future income by acquiring multiple income avenues that were available, and, he planned for the future.

And, with today's athletes and celebrities earning much high incomes then Roger ever did, they will in the short future be completely without any money because of their desire to impress and show off. rather than be impressive with how they are able to handle their current high income.

Now, I must admit that this excessive spending of their income confuses me. And, I am afraid, they don't have the appropriate knowledge or sound advice that would keep their financial portfolio diverse and retain the necessary income that commercial real estate investments will help to keep them solvent into the unknown future.

And, one of those investments -- which I think is one of the best -- is a Net Lease Investment.

With a net leased investment, you will continue to earn income on a monthly basis because as long as you have a National or Regional Credit Tenant, this monthly income will continue and just one net leased property could have paid for a whole lot of things that could extend well into the future.

And, most importantly, these income properties could be used to maintain your monthly expenses -- unless you foolishly buy that overpriced mansion that will suck your money right out of your pockets.

IF you are foolish enough to think that regardless of what might happen to you in the future, you must realize that you will experience time where you could be wiped out immediately from a sports related career ending injury: or even IF you think you would never be involved in a serious life-altering car accident; or that you are immune to a major film or TV flop that you are currently involved with -- think again

Being a celebrity now means you need to securing your future income with a sound Net Leased Commercial Real Estate Investment, is just a simple step away!  Call me to help you earn future income.

Athletic and Hollywood careers have one thing in common: they are DEAD END jobs! Very few are fortune enough to continue to earn the explosive amount of income that is necessary to maintain your lifestyle as you grow older into the future.

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

Where Tony has failed in Downtown Las Vegas, Developers need to succeed!

I have said several times that a corporate town is doomed for failure.

Unfortunately for Tony Hsieh, it happened sooner than even I expected.  Recent news stories have told the tale of Tony stepping down from the Downtown Redevelopment Project and the subsequent layoffs of about 10% of their staff.

One of the proponents of the project was a former professor who moved to Las Vegas a few years ago to be a part of this development.

Thus, in an open letter to the Las Vegas Weekly, the former professor states that the lack of a plan was the point of undoing to the project's failure.  Apparently, there was no "North Star" to help guide the progress.

Which now is verifying everything I had been hearing about the project.  I have continually stated that more developers were needed to help this project along.  More residential, more office and retail has to go in, in order to bring the correct demographic to Downtown Las Vegas to make this viable.

Since Tony had no direction and the City kept saying to my sources he didn't have a plan, I am NOT surprised at this failure.

IF Tony had brought in developers from the beginning and encouraged their input, things could be different.

With the development of new projects, the city may have had more to Downtown than hotel casinos.  I am talking the return of high paying jobs that are the major component of most "Hub" cities such as Phoenix, Los Angles, San Diego, San Francisco, etc.

Without these high paying jobs, Downtown Project's lack of vision was going to end up a train-wreck -- which is what has happened.

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

David Howes Sells NW Las Vegas Office Building!

That's right! I closed escrow on a small +/-3,300 SF office building with a non-denominational Christian church as the tenant.

Many potential buyer/clients had asked me to find them a steal, yet only one buyer actually took the plunge and made an offer which was countered and we were in escrow for roughly 30 days.

We closed escrow or on the sale this past week and the Buyer is now the proud owner of a building that will garner enormous equity in the next two to three years. That's my prediction!  He will double his investment by the time the church lease has expired.

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

Las Vegas Adult/Topless Club Available For Sale!

The Owner of a well located Adult Cabaret Licensed property in Las Vegas has asked me to find a Buyer for his Club.

The Real Estate and Business is available for the Reduced Price of $10 Million. And, this price is the Sales Price. It is Not Negotiable! No financials will be available to any Buyer who wants to verify the business cash flow; and/or argue that the property is worth less than the asking price. NOR, will the price be adjusted because as a buyer you want an appraisal that MAY or MAY NOT justify the Selling Price. If you want a Fully Licensed  "Adult Cabaret" Club with "Full Alcohol" AND "Restricted Gaming," this is the location regardless of the Selling Price.  The local authorities are NOT giving out any more combination licenses.

The purchase price includes: the +/-2.04 acres surrounding the +/-17,000 SF Free Standing building, a double sided billboard sign, and a small .6 acre+/- leaseable car sales lot (which this small +/-3,200 SF building could be demolished to create additional parking for the club!)

The Topless Club was remodeled a few years ago and has been well maintained. Per code, the Owner updated the club with fire sprinklers, a new sound system and Slot Gaming!

So, as you all know, this is NOT for everyone.

As a specialty use in the Commercial Real Estate (CRE) world, only a few will be able to own and operate a club where women dance in scantily outfits (G-String bottoms only) and men can drink and gamble. Oh! And you can smoke cigars while the Ladies entertain you!

This is the perfect setting for a young man visiting Sin City!

This Adult Topless Club is located in the right location, near the major Resort Hotel Casino Cooridor. It is the very best located Adult Club in Las Vegas and one of the best for Topless Adult Entertainment.

IF Interested but the Real Estate Acquisition Price is a little high for your budget, the Owner would sell the  Business at $1.5 Million and Lease the Real Estate at $25,000 per month on a Five Year Lease.

For more information, Email me your contact information, your financial capability for full disclosure of the property.

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

Downtown Las Vegas needs more Developers!

What I don't understand is why commercial and residential developers are avoiding Downtown Las Vegas like it is a plague. There are only flippers coming to my listings and telling me how overpriced they are. Then, I find out that these very same "investors" are flipping other under paid for properties to Tony's Downtown Redevelopment Project. It's as if they are stealing the owner's equity right from under their noses.

So, my question is: Why haven't developers been searching for properties in Downtown?

Tony has bought quite a few. And, I have Sold four Downtown properties to Tony. And, I have several more available For Sale but for some reason, Tony has slowed down his buying spree. And since he has slowed down, now is the opportunity for Developers to move in.

And, Yes! Properties will cost slightly more than the Developer would usually pay. BUT, without competition, Tony's (unpublished) plan will fail.

What is needed is: more residential, more restaurants and retail, and store front office.

I have property in all categories. Industrial is NOT zoned for this area.

What is NOT needed is more festivals. There are already enough being held in this area.

So, Developers! Let's get together and figure out what is best to do for ALL concerned. Let's get some major development going and then we can all make money.

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

CRE: Commercial Real Estate 101

One of the "things" about selling Commercial Real Estate (CRE) is that I get to talk to a lot of different people from different walks of life from around the world.

Some of these people come with a lot of baggage; they are wounded internally and sometimes it takes me months before I realize the extent of their troubled life. Others present themselves as if they are an open book. And they talk and talk and usually have very little to say.

But, the client that I like is the one who is more of an explorer. They are on an adventure rather than they just wandered into CRE investing. They know that CRE will payoff in time and they want to start slow and small -- price wise -- which is good most of the time.

They tend to ask for your help as you go along and they fear that they might embarrass themselves for NOT knowing simple information? It's at those moments you need to remind them: There is never a stupid question! Especially when it comes to CRE investing.

So, in order to resolve the anxiety any novice CRE investor may have, I would like to invite you to read the following information that is absolutely necessary for calculating the annual income from a marketed CRE Net Leased Investment Property that you may be considering acquiring for the annual income.

A lot of you are truly lay people. And, whether you are a famous celebrity or you are just exploring this as a novice investor, this might sound foreign to you.  Just rest assured that just because CRE is a new area for you, it still is something you can get involved in -- even if to spruce up your usually normal day.

So, let's begin:

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 pay a smaller amount in Income Tax on this  money. ***Please check with you Tax Professional to verify this!!***

As you will figure out, the main goal of CRE is to allow you as an Investor, to earn a usually stable predetermine (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 at 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 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: $315,000 x 9.5% = $30,000.00+/-. I don't know about you, but I could use an extra $30,000 per year.  This could help pay for a parent's care or supplement a child's college fund.

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 Purchase/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!

Contacting David Howes is easy -- either by email: david AT davidhowes DOT net OR call me at: 70 25 01 93 88 AND you can Follow David on Twitter: @DavidAHowes

Las Vegas Resort Hotel Casinos For Sale II

A couple of years ago, I blogged that there were a few Resort Hotel Casino Properties For Sale. Now, I want to update you on this: There are Three For Sale and they are true Resort Hotel Casino Properties.

So, IF you have the prerequisite amount of money or financial capacity -- which means you are capable of paying $250 Million or more for a Resort Casino Hotel property -- send me an email with the proof of capacity. I will then reply with a Non-Circumvent, Confidentiality and Commission Agreement for your company's Authorized Officer's signature.

Once this Agreement is executed, I will then supply you the detailed information on the Resort Hotel Casino Property that "fits" your financial capacity and investment criteria.

The form can be down loaded from the column in the right under Las Vegas Casino Information.

Contacting David Howes is easy -- You can reach me at: davidATdavidhowesDOTnet OR call me at: 70 25 01 93 88 AND Follow David on Twitter: @DavidAHowes

8% or Higher Cap Rates In Las Vegas? Sorry, Cap Rates are actually Going Down!

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

"There's nothing around it! The tenant is going to fail!"

Sigh!
Two weeks ago, I had a California Buyer who made an offer for a property with a fast food restaurant that was located just off I-215 on Jones Blvd.
It sits in an area between where there are a lot of office warehouse buildings and well built up neighborhood of SFRs.
And, there is a lot of vacant land in this area and most of it is owned by McCarran International Airport.
Now, Jones to and from the I-215 is a very, very busy street as it is the easiest way for workers who live in the neighborhood to the south to travel to work either on the 'Strip,' or to a business that is located near the 'Strip.'
The Buyer and Seller agree on a sales price. We open escrow. Then, -- not more than one hour AFTER opening escrow -- the Buyer calls me to demand I cancel escrow!  What?! Huh?! Ok.
It took me a week, but I finally found out that "a friend" of the Buyer had told him he had "looked" at an aerial map of the area and he determined that there was "nothing around the property but vacant land" so that meant to the friend "that the fast food restaurant was going to fail."
Apparently, this "friend" knows nothing to very little about Las Vegas.  BUT, his influence was great over the Buyer.
Since canceling Escrow, the property -- which had a lot of interest in it has SOLD to a Real Estate Broker, who flipped the property to another California investor.  The Broker acquired the property for $5.3 Million.  And, an hour after he closed escrow buying the property, he closes his second escrow to the investors for $5.8 Million.  Today, as I write this, is a Thursday two weeks before Christmas and I am still baffled that someone with little or no knowledge of a city or town in another state could have so much influence over a Buyer.
Even after I went over all of the "friends" objections with the Buyer, he wasn't going to go against his "friend."
Yes! This is absolutely absurd!
You see, the reason the fast food restaurant was placed there in the first place was because there is a severe lack of fast food in this area.  There are numerous businesses in this area that their employees had to -- and still do -- go OUT of the area to eat lunch, etc.  In other words, there is plenty of "Rooftops" and "Traffic" to support this fast food restaurant.
And, with McCarran International Airport owning most of the land, and with the recent economic meltdown developers have been hesitant to lease the land and build more buildings.  (This will iron out eventually.)
But a national fast food chain will be able to survive here because it is the only fast food in the area.
So, "friends" please keep your big, uneducated opinions to yourself.  Otherwise, you will cost your Buyer friend an opportunity to make money from a well placed National Credit Tenant NNN investment.

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

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