Wednesday, November 11, 2015

Icahn lists Fontainebleau for $650 Million

At lunch today with a gaming executive, we started talking about the announcement of Icahn listing the Fontainebleau for sale.  The rumored asking price is $650 Million.

"That's too much," said the gaming executive.
He continued, "the gaming industry has changed in the last 10 years. You used to be able to buy a $300 Million property and that resort would turn a profit in a year or so, but not anymore.  The casino industry is in trouble with so many local casinos going in, in other states.  Nowadays, forget it! Spending a billion eliminates any possibility at making any money."

He also added, "Look at Caesar's.  They let their CEO acquire so much debt, that even in bankruptcy, they are going to get the short end of the deal."

He asked, "...and how much is it going to cost to finish it (the Fontainebleau)? At 50% completed (more accurate than what is being published) the new owner is going to be into a property that is not well located on the "Strip" for about $2 Billion.  And, they are going to need a lot more foot traffic in that area before they turn a profit."

I had told him that I written an offer about two years ago for $450 Million and Icahn turned it down.  He said, "That is more realistic but still too much," in his opinion.

All I can say now, is: Best of luck to whoever buys this for $650 Million.  Whatever sucker pays that much will be going the way of other Las Vegas resorts in the short term.

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

Friday, November 6, 2015

"What other people think of me is none of my business." - Dr. Wayne Dyer

Recently, I have had real estate people criticize me in forums and through other people because of my opinion; or, because I am so open and honest in ALL CRE transactions that I am involved in.

It's the reason WHY I have only been to one deposition in 24 years which was for a real estate transaction that was going sideways at that time.

Anyway, the full quote is: "What other people think of me is none of my business. One of the highest places you can get to is being independent of the good opinions of other people." - Dr. Wayne Dyer

And, because some of these people have said things to other people I know -- I am sure most were trying to be positive and helpful -- that I have to emphasize that I truly do NOT care what you think about me.  Of course, I am referring to other real estate brokers, agents and affiliates or such that have formed an opinion about me through the years.

So, I am going to just say: I do what I have to do to get a CRE transaction done in the correct and most honest manner.  If that bothers some of you people, that's fine.  You can just stop being critical of me because I don't care whether you like me of not.

And, I know who you are.

I saw a saying a few days ago that went something like: 'I have been making changes in my life.  If you haven't heard from me in a while, you are one of the changes I made.'

Hopefully, clients fully understood that there are some idiot agents here in Las Vegas that don't want to do any CRE transactions with me.  That's fine.  That speaks volumes about me.  And, it tells me, that these agents are lazy, sleazy or just want to make a quick buck.  It is also because I have always insisted that they do their job.

Like I said in the previous post, I do work well with others.  I do work hard.  And, if you think I need training, or, you don't like opinion of a property value you placed on a property, go suck an egg.  You are in my way and I am going to help my client get the fairest deal they can.

Working with David Howes is easy! Just contact him -- either by: davidATdavidhowesDOTnet OR call him at: 70 25 01 93 88 AND be sure to Follow David on Twitter: @DavidAHowes

Tuesday, November 3, 2015

Another national real estate firm "Broker" gets Called on the Carpet!

I love working Commercial Real Estate!  I must because of the nature of the business.

You see, recently, I had to call another 'Agent' on the carpet.  I did so because this agent -- who works for a national real estate firm, doesn't return other "Broker" up calls -- then when you do get a hold of them: They Lie!

This particular salesperson/agent -- who refers to them self as a broker (Not licensed as a broker.) -- doesn't want to work with others because of the severe commission split within their own office.  (I have blogged about this before.)

Anyway, I do try my best to work well with others.  I do try my best to do what is best for my client.   I will, also, kill a deal if I find out that my client's interest is suddenly hampered by a just learned about fact about a property being pursued.  (And, I am proud of the fact that I have only been to one deposition in my 24 year career.  And, that was because the Seller lied to me during the listing presentation.)

Anyway, here's the key to NOT experiencing my wrath: Don't lie to me!  If something is wrong with a property: Tell me!  I can help get a Close IF I know property problems well in advance.

And, if you refuse to take my call; or refuse to reply to my emails; step aside and get out of my way! In this business, delivering bad news is part of the job. So, get used to it.

Everyone hates losing listings, losing sales, and even losing clients.  It comes with the territory.

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