Las Vegas CRE Resort Investment Property Do's and Don'ts!

For some reason, quite a few "investors" ask me about financials for certain 'well located' Resort, Hotel, Motel and Gaming Properties.

Looking at and analyzing the financial statement would be the normal way of processing whether or not a 'well located' property is worth a specific sales price.

However, Las Vegas Resort properties suffer from the fact the Owners are well aware about their property situation, and the prominence of their location.  And, since most of the 'Buyers' are unaware, it is important for these Buyers to know and to understand -- before even asking -- that the most important feature of these properties are: the H-1 zoning, the fact that they lie within the Clark County Gaming Overlay; and that there is a future upside IF a certain Resort Property has elements  surrounding the property that would evolve into a massive development.

So, what is the current owner to do?  Well, that answer is easy: they hold out for their price.

Unfortunately, these well intended Buyers come along, and they 'think' they are smarter than the Sellers; and they try in vain to overtly explain to the Seller the 'why?' the Resort property isn't worth what the Seller wants in order to sell.

For example, the $10 Million an acre is a number that is thrown around here in Las Vegas for property located on the Famous Las Vegas Strip.  (Now, this is an approximate measure of value that the land under the Resort hotel, motel that Sellers use as their gauge of value for their property.)

The problem with this is that there are some Buyers who will -- because of a sense of desire -- overpay for a property -- thus set an unrealistic bar for us Real Estate Brokers.

Yeah!  It is great for our bank accounts.  However, it sends an unrealistic value ripple effect through the neighboring properties.

When this happens, the Owners/Sellers now think that their property is worth that or more simply because their properties are NOT vacant, better maintained, even though NOT as 'well located.'

So, when I know of a property that is available for sale at $10 Million an acre, lets say, that I know that, that price -- set by the 'Seller' -- is in fact worth that amount because a similar property down the street sold for that exact amount.

And because of this established price, asking for financial information, will NOT reflect the Sellers Selling value adequately.

I do know that the financials show a particular Cap Rate; and, I do know that the high asking price will be more than a buyer is used to paying to acquire a well located property.  But, since the Seller has bought and Sold properties through the years, I do know, that they know the value and will sell at that value.

You understand, right?

So, potential Resort Buyers, please listen to me: when you review the marketing information I send you, please remember that the price is the price -- especially for a Resort property along the "Strip."

So, 'Do' ask me questions about Las Vegas Commercial Real Estate!  I will gladly answer all of your questions as honestly and as effectively as I can.

But, please 'Don't' come to Las Vegas thinking you are going to acquire a 'well located' Resort property below market value.

Hopefully, you and I are now on the same page?

To Contact David Howes try: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!

Well, Caesar's had to have had a way to pay for their Bankruptcy!

When I first heard this, that's what I thought.

Caesar's Entertainment just completed their bankruptcy and since it cost them tens if not hundreds of millions in attorneys fees, I knew that, that cost would be passed on to their visitors somehow.

Well, that's not the official standing, anyway.
The Caesar bosses are proclaiming better WiFi service in the rooms, maintaining passes to their property's fitness center, and a whole lot of other gobble-gook.

But, the fees are here to stay -- and they will charge them for as long as visitors continue to book and stay at their properties and are willing to fork over their hard earned money.

Resort Fees to Increase at Caesars Entertainment Properties

Anyway, the other sad note is that even Free Parking at Resort Properties is a thing of the past, too!
Now, if you are staying at the property there is a discount. But, that varies property to property.

Years ago, when I first moved to Las Vegas, I took a part-time job as a taxi driver -- to get familiar with the city and 'Strip!'  And, once picked up a lady at a casino and drove her to the airport.

Along the way, as we were talking, she said (paraphrasing here) that she remembered when Las Vegas was eloquent.  She said, Las Vegas had turned into a K-Mart.  When she first came to Las Vegas years ago, it was a different time; a time when people dressed up to go down to the casino just to gamble.

I asked: why did she think it changed so much?  What she said next, I will remember this for the rest of my life.

She said, Las Vegas changed when the casinos were bought up by corporations.  She said when the 'mob' ran Vegas, they made sure you got a meal and freebies to remember your visit.  Now, she continued, everything is a profit center.

And she laughed, even housekeeping.

As I sit here today, I ponder her statement. and ask myself, How are they going to make money through housekeeping?

Oh, that's right!  In the future -- near or far -- prepare yourself for a Resort to charge a "Housekeeping Fee."

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

Are Congressmen & Senators Non-College Educated, Too?

Don ran an excellent Presidential campaign that focused on core issues as "bad" (when they weren't) and stirring up so much anti Hillary sediment.  While doing this, he confused rural Americans into thinking because he was a businessman, he was the "only one who can fix it" person.

(The problem with this is that throughout US history, businessmen who became president are some of the worst presidents ever! (Don't believe me? Look it up.)

And, this: "I'm the only one who can fix it" attitude, enabled him to confuse and con the rural Americans into voting for him.  They (apparently) goose-stepped to the polls thinking he was going to be able to do what no other President would or could do.

(Boy, did these rural Americans get conned.  The majority of rural counties (+/-3,100) voted for Don; whereas, the majority of Urban counties (+/-57) voted for Hillary.)

And all during the 2016 Presidential campaign, Don kept saying how bad the Affordable Care Act (Obama care) was.  And, by doing this, he convinced rural Americans that the insurance that was actually helping them, was horrible for them.

However, the problem with Obama care, according to the Speaker of the House, Paul Ryan, was that insurers systematically pulled out of states -- thus enabling one insurer to have a monopoly within that state, that enabled them to charge more money in that state, thus the monthly increase in their premiums.  (And, they were able to do this because of the limited, or very, very weak Federal Regulation.)  And because there was no mandate stating: "You must provide insurance to all," They decided that they weren't making enough money.

Through the years, I've asked why there is no Federal Regulation for Insurers -- just as there is for Federal Mortgages, etc.  You've heard of the 'Equal Opportunity' line when applying for a mortgage, right?

So, why is there no Equal Opportunity for Insurance?

Paul Ryan explains why ACA Premiums increased

The reason is: the insurers don't want any Federal Regulation on their industry, so they continually lobby and contribute (pay off) to Congress person elections to avoid being regulated.

The problem is: Insurers are in the business of making money.  They truly don't care whether or not you are healthy; or, have adequate health care coverage, as long as you pay them your premium. That's all they want.

Oh, and if you want to have better coverage, or have a lower monthly premium, you must have a higher than normal deductible.  (Does this sound about right?)

Affordable Care Act Explained

And, the protests we are seeing at Congressional Town Hall Meetings of these Congress persons from these rural American Counties, is having an affect on them.  Even these supposed Non-College Educated rural Americans are finally realizing that they were conned, too.

These elected Congress persons or Senators are starting to feel the heat that repealing Obama care as Don has demanded -- or even changing it to what the insurers want -- will result in them NOT being re-elected.

This makes me think: Are these politicians Non-College Educated, too?  It's obvious, they didn't understand the Affordable Health Care Act in the first place.

I know that Don still doesn't understand it.  (He claims he doesn't like to read, so, I am guessing that he hasn't read it, nor has anyone around him.)

Don't Change My Health Insurance

So, all you politicians: Maybe it's time that you stop taking insurer's money and start focusing on your constituents, because if you don't; if you continue to support a bad president and his lame policies, you will be out of office the next election cycle.

Ignore Constituents and you are out!

Now, I knew that there was a huge campaign to 'Hate Hillary' this past Presidential Election.  I just didn't think rural Americans would be so easily persuaded as they were.

PS: If running for president, please remember: "Democracy was never meant to be efficient."

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