Las Vegas Commercial Real Estate

Net Leased Investment Formula

2012-02-27T09:23:00.000-08:00

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.

The main goal of this formula allows you as the Buyer to pre-determine the (estimated) annual income from a Net Leased Property that is being marketed by a Sales Price by a Cap Rate.

Usually, the marketing entity for the property will only disclose the Listing/Asking Price and will state that, that List/Asking Price is a certain Percentage of Return on Investment or Capitalization Rate (Cap Rate).

Now, from these two disclosures, you will be able to get an idea of just what the annual income is and whether or not it "fits" your CRE income needs.

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

For example: $1,970,000 x 9.3% = $183,210.00+/-.

And, once you have the income from the Marketed Sales Price and Cap Rate, you can figure out your Sales Price by dividing the annual income by either a Cap Rate or Sales price to figure out a Cap Rate. It's done just as there are variations to other formulas. You figure out from just two disclosed items the third item -- 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 will be disclosed in the financial statements which is an absolute necessity when considering the acquisition of a 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.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

CRE has turned corner? Tell that to my clients!

2012-02-25T12:41:00.003-08:00

In a recent GlobeSt.com article, an economist from the National Association of Realtors (NAR) is quoted as saying: "The commercial real estate industry has worked through its troubled properties much more efficiently than anyone would have expected..."

First of all, that might be true for some markets such as most east coast cities and a few west coast cities, such as Los Angeles, because they didn't have the explosive new development growth that fueled their economy within the last dozen or so years. So, well built up cities are seeing the light at the end of the tunnel because of their limited fixed standing inventory.

Second, Las Vegas, Phoenix and "other" markets that led the charge in housing development in the past dozen years, are still lagging behind in CRE sales and leasing activity. The reason is the huge number of properties in the shady inventory category that were built but are still vacant because we still suffer from lots of standing vacant inventory that remains underutilized.

Of course, CRE foreclosures have slowed as the article mentions, but that is because there are fewer properties heading in that direction. If you are currently being foreclosed upon, you are near the tail end of the foreclosure train. So, IF you can stick it out, you will be better off.

Still the economist predicts that: Office will have an increase in leasing at about a 1.6% increase rate. Industrial will increase 1.8%; and Retail will increase only .7%. This isn't very good in my opinion.

So, with these slight amounts of sales and leasing activity increase, I am NOT buying into the "CRE has turned the corner" scenario. At least my clients are NOT -- especially in Las Vegas, NV.

Yet, are there still very good buys in Las Vegas? Hell, Yes! Will buyers get better prices if they continue to drop? Most likely, Yes! Yet, we already have great prices on most Net Lease Properties. If you look at the national net leased picture, properties in Las Vegas are at steal levels.

So, with the average Cap Rate in the US hoovering at +/-6.5% to 7%, why are Buyers looking the other way and avoiding these specific Net Leased Properties in Las Vegas? Why do they buy the 6.5% property rather than the 9% Property? Are they just afraid to pull the trigger on Las Vegas?

While reviewing my Federal Income tax information for my tax accountant, I figured that my SEP's return in 2011 was only 4.8%! I was dismayed at such a low rate of return; yet, I was happy it had gone up - ever so slightly.

IF I had $2 Million in the SEP, I would immediately withdraw it (paying the penalty, of course) and acquire at least one of these PT Pub properties.

So! My two cents worth of advice: Get off the couch! Go to your computer or telephone and contact me so I can show you how you can obtain an income property with little PM responsibilities right now -- at a great price!

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

Las Vegas Sports Bar For Sale @ $625,000!

2012-02-20T09:26:00.000-08:00

You read the headline correct!

There is a sports bar available (as of today's posting) on a major Las Vegas Street in the Southwest (NOT on the Strip) that the bank will sell for $625,000!

It is a +/-4,000 SF building on .87 acres of land! It has a Full Alcohol License, 15 Slot Machine "Restricted Gaming" Entitlement and a Full Kitchen!

At this price, this building will be heading to the Sold column -- soon!

So, send me an email right-away and I will get the info to you as soon as I can.

Hopefully, you will be able to make an offer and acquire this before anyone else!

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

US Mail Market Campaign Added Web Readers

2012-02-17T15:57:00.000-08:00

In January, 2012, I decided to compose marketing letters to specific people who I had learned were starting to earn a lot of money from their work. And, since -- as far as I could tell -- they lacked experience in the real estate field, I thought that by sending them letters with the intent to help educate these up and coming wealth accumulators, I could help them generate even more money by showing them how to invest in real estate -- specifically Las Vegas Commercial Real Estate.

So, I worked up my list over a few days; then, I decided to limit the total number of mailings to 35 people. From my research on these 35 people, I was satisfied that they not only could afford to acquire long term real estate rental income, they also had sense enough -- and were young enough to know enough -- to be in the first stages of making additional income for themselves and their families. And, by living and working in Las Vegas, I know enough about this market to say it is a good market to go after -- especially as a first time Net Leased Investor. Besides, most (I think) had already bought and/or Sold a SFR or condo at least once in their life that was within their earning limits and only a few had been foolish to acquired Multi-million dollar mansions with their sudden high income earnings.

So, out of these 35 people who I approached through the US Postal Service -- and some through their web sites that I was able to determine was their own -- I received 5 responses ALL via to me through my email.

Now, usually a response to an unsolicited US Mailed letter is somewhere around 1% -- maybe 2% if you get lucky. And I expected that my unsolicited emails would be received even worse because the recipient -- as you know -- can just click delete without even reading the message.

However, I had 5 responses out of 35 letters and emails. I was tickled by this +14% response. Of course, the down side to those responses was: "NOT interested." Well, I guess that's better than no response at all. (Are you reading this? You remaining 30 who haven't responded?) And, since I haven't written any new offers for the properties that I was marketing, well, maybe it was a waste of money.

But, that was what I was thinking until...I saw the number of visitors to my web/blog site where the property is available to be looked at. My visitor number was going up day by day. When I started my web blog three years ago, I may have averaged about 100 viewers per month. But, since mailing the letters (via First Class Postage) to only 35 people (OK, I did sent maybe an average of one letter per week per person encouraging them to acquire the long term Net Leased income) the overall viewership to my web blog has increased to more than 650 for this one month period! That's 650 new visits from about the middle of January to February 17th, 2012 alone!

I had to do the math real quick. That means that the letter/email recipients had to checked out my blog on average 18 times each!

Sure, the letters were a part of the increased traffic to my web page. And, every time I did a post, I shared it with Twitter and Facebook, too. But, when I check my web site traffic section for the URL of where the search initiated from, it was from people typing my name: David Howes; or my web site name davidhowes.net into Google!

The thing about this search of my name and web site name is: it was still 613 times! In one month! And from what I can tell, it was most likely done by either a recipient of a letter or email recipient more than once! And, they were from all over the globe! There were 53 visits to my web page just from a Russian Language "Google" like site alone! Hmmm... And 35 from Goole.com.ca; 6 from Google.com.hk, another 6 from Google.com.in and 14 from Google.com.au!

And, as I mentioned before, I "shared" with Twitter -- which had 20 visits to my web site directly from Twitter; and the same to Facebook which turned up an additional 17 visits. That means out of the 35 letters/emails, and the +/-10 postings in a single month, my web traffic increased to 650 visitors!

Now, the real test is to see if one of these 35 people -- and you know who you are -- would contact me an acquire one of these well priced net leased investments, that will pay you monthly rent of +/-$15,000 to +/-$20,000 NNN per month! If that happenned, I could stop writing letters and emails to you!

However, with this type of response and potential success rate, I will be writing an offer and selling one of these Net Lease Income Investments in a (hopefully) relatively short time. And, I will continue to send out letters to the 30 remaining who haven't responded -- yet; and, I need to expand this to another 70 -- just to round this up to see what happens.

So, be prepared for a few more letters and emails to sites I can track down as belonging to a young, inspired entrepreneur! I think there is at least one buyer yearning for additional income -- even if it is between income months!

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

Los Angeles Real Estate to stay dismal in 2012

2012-02-15T16:10:00.000-08:00

A few weeks to a month or so back, a Commercial Real Estate (CRE) client residing in LA told me during one of our conversations about acquiring property that he wasn't investing in LA because: "there's nothing but shit here."

At first I thought he was just being picky because he is somewhat of a bottom feeder. However, this afternoon I see that according to some RE Experts (a nice way to say know-it-all?) they are predicting that real estate investment returns will be dismal in California at least through 2012.

Unfortunately, my investigation into LA Cap Rates show that they are at an all-time low. If you translate this, it means that selling prices of CRE properties are very high. So, getting a decent Return on Investment (ROI) is seriously lacking in the LA basin. Just so you know, if you buy land in Las Vegas and "Land Bank" it, the return would be approximately the same as buying an LA property. This is because with inflation at +/-3%, buying in Los Angeles or even in California if your ROI is only going to be +/-3%, why even bother to buy there? And, Land Banking is less Property Management (PM) and your only expense is Real Estate Taxes. So, if you are a novice in the commercial real estate field, you will want a property that is low PM and low cost.

The next best thing to Land Banking is acquiring a property where the Cap Rate is 9% or above. I have investigated the Las Vegas market and the lowest Cap Rate I have found is in the 5%+/- range.

AND, with properties in Las Vegas hovering in the +/-9% Cap Rate range -- which I believe are steals right now -- you will make money long term. So what if the highest returning property is a sports bar being leased by a Golden Gaming? They are a dependable and long term tenant. And, they are more than willing to extend their initial lease term because they are the only location authorized to "test" a new sports wagering kiosk ATM like machine. AND, because of their "Restricted Gaming" License, this means they would be the ONLY ESTABLISHMENT within a 1,500 foot radius of this location authorized to offer slot machines with full alcohol and food.

Just so you know, I know of an OFF MARKET small, local "Unrestricted Gaming" casino that has a grandfathered license status. Which means it is exempt from the smoking ban law! AND, they have full alcohol, food and 35 slot machines. (Unfortunately, this is an owner-user property and will run you +/-$4 Million to acquire!)

So, take a look at the column on the right and click on one of the PT properties. You will see that a 9%+/- Cap Rate in Las Vegas is a "steal" right now. And having at least 120 months of continuous income at +/-$15,000 per month with 2.5% annual increases is the way to go! Real Estate rental income will always out pace even the best syndicated shows return which diminish over time!

Don't be bashful. If you have any questions, email or even call me. I don't bite! And, all is kept in strict confidence. Hope to talk to you soon!

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

Las Vegas Dragon Motel For Sale!

2012-02-15T15:20:00.000-08:00

Just so you know, I just Listed For Sale the small, boutique Hotel/Motel in Downtown Las Vegas that is known as: The Las Vegas Dragon Motel!

This small 42 unit property has been around since 1953 and is well located adjacent to Tamaras' Property such as the Ambassador Motel -- which they tore down; and near their Western Hotel & casino -- which they just closed.

Rumor is they are planning a larger new development on these sites. Since they deny it, I get the feeling maybe its a probability. We'll see.

Even though it is small 20,800+/- SF, this property could be accumulated and added to some of the surrounding properties and this could be built up or even made a part of another development.

With Zappos moving into the "old" Las Vegas City Hall, employees will need residences within walking distance to their jobs.

So, check out the brochure information in the right hand column and call me with any questions.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

LV Resorts (QUIETLY!) For Sale Update!

2012-02-11T12:57:00.000-08:00

A couple of Las Vegas Resort properties are QUIETLY being short saled through the bank which holds Notes and Trust Deeds on these properties that are in the Billions of US Dollars. The bank has audited the property's books and has set the selling prices at $500 Million and $300 Million respectively.

If interested in acquiring one or both Las Vegas Resorts, contact me via email with your company's authorised signature officer's contact information.

I will prepare a Non Circumvent, Principal Confidentiality and Commission Agreement. Once that is fully executed, you will have to email me your company's current financials which will be forwarded to the bank for their review and approval.

Once the bank has reveiwed your financials and have completed their in-house investigation of your company, then, they will contact you directly as to whether or not they will proceed with you as a buyer.

The bank is willing to finance a new loan at 75% of the bank's selling price to the most qualified company.

Also, the sale is NOT contingent upon your obtaining Nevada Gaming Control Approval to own and operate a Las Vegas casino! That would be done separate and aside from the purchase transaction. A qualified and already approved gaming company would run the casino while your gaming application is being investigated buy the Nevada Gaming Control Board.

Lastly; NO information will be disclosed on any (potential) Resort Property that may/may not be for sale WITHOUT A SIGNED Non-Circumvent, Principal Confidentiality & Commission Agreement!

I appreciate your patience and tolerance in this matter.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

Distressed CRE Ebbs!

2012-02-09T09:04:00.001-08:00

According to a recent GlobeSt.com article, distressed Commercial Real Estate (CRE) is ebbing from a high set this past October, 2011. It points out that each sector of CRE -- with the exception of Industrial. Office, Retail and Apartments showed a declined in the number of foreclosures where Industrial foreclosures has risen about 3.8%. There is no secret that unless manufacturing and construction jobs increase, this sector will remain flat.

However, office is still the largest sector but it has decreased 2%. It this was followed by retail and apartments.

This is a good sign for now Hopefully, as the article indicates, that maybe banks will start lending more and borrowers will continue to appear as long as interest rates stay low.

For a complete first hand look at the article click on the link: http://www.globest.com/news/12_281/washington/distressed_assets/Distressed-CRE-Continues-to-Ebb-318521.html?ET=globest:e29105:345109a:&st=email

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

Las Vegas is Red-Lined by Lenders!

2012-02-06T17:21:00.000-08:00

This weekend an article in the Las Vegas Review Journal had profiled a fellow Real Estate broker who believes that Las Vegas is on the mend. He and I think alike in that we believe NOW is the time to buy!

There's just one tiny problem with our shared philosophy: The lenders don't think it is time to lend!

Am I making a rash statement because of my overflow of frustration for NOT being able to get a transaction closed with financing?; OR, is this scenario a real life existence for ALL brokers and buyers due to the fact that banks made massive mistakes in lending leading up to the economic collapse in Las Vegas by lending more than 100% of a homes value to borrowers who only had to "State" their Income?

And, the banks that have "supposd" assumable loans on commercial properties, can't get buyers approved because the rate of that current loan is too high. And, with better rates out there, why can't the banks get buyers approved at the lower rate? I'm confused.

So, the banks just seem to continue making this mistake over and over because they are hamstrung to proceed at doing nothing right now -- except taking an ever expanding loss!

Unfortunately, it appears that with banks NOT lending, they seem to be making a lot of money! How is this? And, by NOT lending in Las Vegas, the money they are making seems to come at a continued cost to property owners. Sellers can't sell and they can't continuing to maintain their dignity and perserve themselves! So, their proeprty ends up in foreclosure.

So, that assumable loan at 6.5% is very unattractive to today's Buyer. However, unfortunately, when that same Buyer goes to that very same bank and tries to borrower the same amount as the loan assumption value at a lower +/-3% interest rate, the bank still turns the buyer down because the proeprty is upside down according to their appraised value and the remaining loan balance! No, wonder the banks have ended up with so many properties that are sitting vacant!

So, home cash buyers (Flippers) who are (pretending to) scoop up homes under the false pretense that they are getting a deal and will be able to flip the houses realitively soon at a profit are kidding themselves! Unfortunately, by the way the banks are acting, the reversal of this term is not going to be soon enough at all. So, these Flippers will be stuck with these houses -- unless they carry-back a note OR they rent them out for as much monthly rent as they can get.

So! Buyers! Ahem, I mean you Buyers with cash! Come One, Come All! There are choice commercial properties waiting for you to pick them up. And at Cap Rates in the 9% range, don't hesitate, because these won't last. Sooner or later, Cap Rates will Go Down which means the prices of the proerties will go up! And once the smart investors have acquired these properties, there will not be any left for the average buyer!

And all this is because, the banks can NOT get their collective heads out of their.....

You get the point.

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

Pending Boom will trickle down to CRE!

2012-01-31T16:32:00.000-08:00

In case you have been asleep at the wheel the last four years, there is a building of kinetic energy that is going to fuel the next economic explosion. And, as is pointed out in the column below, it will be in the data and smart technology that we are starting to see coming to the market.

Granted our dear congress-persons have been too busy in-fighting over which social programs are too costly, thus trying their best to slow or even stop any economic turn for the better at any cost. Thus, the economic tide continues building momentum and that will continue to roll forward with or without them.

Here is an excerpt from GlobeSt.com.

"The Impending Boom

I thought I would share the gist of an article that I read yesterday in the Opinion Section of the Wall Street Journal. "The Coming Tech-led Boom" was an incredibly stimulating prognostication that the United States is on the cusp of three technological breakthroughs that will transform our economy and fuel hyper economic growth: Big data, smart manufacturing and the wireless revolution. The first out-of-the-wonder-box idea is that data is virtually free, and that the "cloud" will enable a network of thousands of data centers, producing data-crunching at a level that will spawn previously unimaginable services and businesses. The second emerging paradigm is "smart manufacturing," the revolution of design and build from the molecular level to create new materials with properties not possible in nature and enabling start-to-finish manufacturing from a desktop. The third is the connectivity of billions of people through cloud-based wireless technology. The United States is at the epicenter of all three technologies, and these will engender sweeping changes in business and society. I am attending the Real Estate Round table meeting today in D.C., and it provides a backdrop for thinking about how the real estate industry will capitalize on the impending boom. Unfortunately, our industry is rarely an early adapter of change; in fact, we are in many ways still in the Jurassic era on the technology front. Sad but true." Tony LoPinto.

So, do we continue to sit back and wait until it is too late as the economic roll runs over us? OR, do we actual get up, start re-investing in Las Vegas CRE and ride the economic tidal wave as it comes roaring by?

Your choice. I think whether or not prices have bottomed in Las Vegas is moot and the smart investor starts investing now because the smart investor knows that in commercial real estate you make your money or profit WHEN you buy!

If you don't believe me, just wait. But i will be saying: "i told you so," when you are bowled over by the approaching economic tsunami wave.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

Las Vegas Resort Buyer(s) Pay Attention Here!

2012-01-30T19:43:00.000-08:00

You WILL NOT be give any information on any (potential) Resort Property that may/may not be for sale WITHOUT A SIGNED Non-Circumvent and Commission Agreement!

Emailing me and insisting that you are qualified and have CASH is going to get you no where.

Please be advised that IF you are NOT willing to provide me with CPA and/or CFO Certified P&L and Balance Sheet, PLUS the Signed NC and CA with a company's authorized Signatory's signature, further discussions are moot.

However, IF you provide me with what I have asked, and provide me with a signed NC and CA, I will forward those documents to the appropriate parties; and THEY will decide as to whether or not you are qualify to acquire a Resort! Any deviation from that will be a waste of your time.

So, MAN UP! The number of properties your own; or where they are located; or how much money you say you have is irrelevant and has no bearing at this point unless and until you provide the appropriate documents to me!

Once your financial credentials have been established by the receiving party, then THEY will contact you about further discussions about pursuing the property.

Any questions?

My apologies to the rest of the readers. It's just a couple of wanna be casino hacks that are being overly insistent in an area where co-operation is absolutely mandatory.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net or 702-501-9388.

Las Vegas Home Prices Still Falling Means Commercial Investments are Looking Solid!

2012-01-30T10:05:00.000-08:00

The Las Vegas Business Press is reporting that the Las Vegas homebuilding industry is sagging.

"The Las Vegas homebuilding industry sagged to a record-low 3,793 new-home closings in 2011, a 30 percent decrease from the previous year, Las Vegas-based housing research firm SalesTraq reported in December FastFacts," according to the Las Vegas Business Press.

This is a bad sign for all those residential Home "Investors" acquiring properties and then trying to "Flip" them. You are better off NOT buying a house at this time, say I.

And, since, "There were 384 new-home permits issued in December, bringing the total to 3,740 for the year, a 15 percent decrease from 2010. Those are the worst numbers for new-home sales and permits since SalesTraq began tracking the market in 1992, company President Larry Murphy said," published Monday in the LV Business Press.

And, with "The median price of a new home dipped to $211,265 in December, down 3.5 percent from a year ago, but up $4,000 from the previous month," This means that buying a home in Las Vegas could result in a loss of equity and prinicpal in the coming and the next year.

Is that Bad News for Las Vegas Commercial Real Estate? I don't think so, say I. Because there are several quality real estate investments that could be long term, lucrative investments IF bought NOW while we are near the bottom. And, a +/-9.5% Cap Rate is one of the better rates across the US.

Please check the Freestanding Investment button on the right side bar and see what I am talking about!

And as always...

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

It's Time To Step Up and Buy! OR Miss Out!

2012-01-28T10:29:00.000-08:00

Most of my clients have been waiting for the bottom. For four long years, Las Vegas has seen a continued downturn in values first from homes caused by the mortgage meltdown to commercial properties where companies just went bust and were evicted for not being able to maintain their business. And, active Real Estate investors/buyers have grown accustomed to just sitting and waiting because they all feel that the bottom hadn't arrived -- yet.

Well, folks! It's here! As I scan the Las Vegas commercial real estate horizon, I see that the slow down in sinking values "looks" as if it is coming to a halt. Now, NOT like a car hitting a wall type of halt. But, more like the recent NOD and Trustee Sales Reports that are emailed to me are showing less and less commercial properties being foreclosed upon.

And yesterday, an appraiser I have known and worked with through the years called me to ask about this property value trend. He was doing an owner valuation for this one particular company who owns several large various properties across the Las Vegas Valley.

His most important question he posed to me was: Are Property Values most likely at the bottom? Of course! I said. Do I know that for sure? No. But, if he was referring to being at an exact bottom, it is hard to tell. So, my answer of Yes! is my opinion that: This is the time to buy! By the way, the appraiser wasn't surprised by my assessment.

Now, DO NOT GET ME WRONG! I am currently seeing a trend where buying a commercial Income Property now makes perfect sense even a year from now. Since I am NOT just trying to close a sale, I can honestly say: IF you wait any longer, you will miss out on these income properties and the acquisition price WILL BE HIGHER next year! (Remember, the higher the Cap Rate; the lower the price! That means, if you wait any longer, acquiring that real estate income property will cost you more in the future because the Cap Rates, nationally, are already headed down!

So, DO NOT WAIT ANY LONGER! Give me an email or call for details on just how you, too, can get rich via a long term RE investment.

For information on Las Vegas Real Estate, email: david@davidhowes.net or call 702-501-9388.

Passive, Triple Net, Freestanding, Real Estate Investments: 101

2012-01-23T18:50:00.000-08:00

For those who have been subject to my snail mail Letters and Tweets and emails, my apologies.

The wife recently made me realize that in your everyday lives, when some one like me comes along and tries to make you aware of an investment and calls that investment a "passive" or "NNN" or "freestanding" or "real estate investment," you immediately conjure up the image of a nasty slum landlord who is only out to collect his money! Oliver Twist anyone?

Then again, I am NOT pointing you in that direction of becoming a slum lord. My intention is to allow you, who are most likely novices when it comes to real estate investing -- to enter into this lucrative world with as little anxiety or property management concerns as possible.

And, a "Triple Net" or "NNN" property is that type of venue. And, these types of real estate investments are the most popular type of real estate ownership for someone new and in-experienced; and as well as for those who are well experienced. These are investments for someone who is looking to get a better return on their money than through traditional Wall Street types of investment products that are probably presented to you more often than not by your business or financial money managers.

You see, as an owner of a property that has a tenant under a "triple net" lease, you just simply collect rent. You are only responsible in actuality to cash said tenant rent checks.

Another advantage is that even without a loan to pay off, you still gain equity while you own the property. And, the tenant you acquired with the property is (usually) responsible to pay pre-determined annual rent increases as well as pay for the real estate taxes, insurance and maintenance on the building. (There are different degrees of this, so be sure to call me with any questions.) So, you can see, as the tenant stays through their lease term, their rent usually goes up annually and your costs are covered.

Sure, in the last few years we have seen a decrease in RE values, and rents have decreased from the tenants who HAD moved out because they lost their business and could no longer afford the rent. But, that happened to multi-tenant properties such a a shopping centers, Business Parks and even office buildings.

For freestanding, NNN, passive investment properties, that wasn't necessarily the case. Thus, the current higher than normal demand for these types of properties, such as: 6.5% Cap Rates in middle America. (Las Vegas Selling Cap Rates are +/-9%)

Also, during 'normal' markets, equity is accumulated over time. And, as a NNN investment, paying cash for a property such as the ones on the right hand side of this page, you will NOT have the responsibility of a loan to pay off. Thus, your Return On Investment (ROI) would be higher and sooner than if you had a loan to pay off over time.

So, be brave. Be fearsome. John Wayne made his fortune in Orange County real estate. Why do you think Orange County named their airport after him. Sure, he still did his movies. And, because he was wealthy enough from his real estate investing, he got to pick his parts and to choose his co-stars! He didn't HAVE TO settle for or even take a part he didn't really want because he never needed the money. (Sound familiar to some of you?)

Also, for you with Non-Profit financing goals: A ten year lease by a Credit Worthy Tenant is money that can actually help the Non-Profit of your choice in your name by giving them a monthly income instead of a lump sum. Your acquisition and assignment of the rent check to the Non-Profit, allows you to give over time. (Talk to your Tax Preparer about this.)

So, call me. Let's discuss this further. Once you see the light that investing in a Passive, Triple Net, Freestanding, Real Estate Investments, is one of the best ways to earn while you play, you will NOT want to go back to business as usual.

And, your real estate money will (help) pay for other things in your life that you are currently paying for from your Hollywood or Pro-Sports Money. Think about it!

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net or call (702) 502-9388. Thank You for reading this!

Two Las Vegas Casinos For Sale!

2012-01-14T18:10:00.000-08:00

For those who are interested, two Las Vegas Casino Properties are available for sale. A Non Circumvent and Commission Agreement is required in order to receive any details on either property.

The First is a larger property and it costs $300 Million. The Bank will finance a loan at 75% LTV.
If interested (and qualified) in pursuing this property, The Bank requires you to provide them with your financial capability and provide Proof of Funds! They are looking for people/companies that are licensed - or who can qualify for a Nevada Gaming License. And, this is ALL prior to release of any property information.

The Second is a smaller property and costs +/-$4 Million. Even though it is +/- 5,500 SF, it still has the "Unrestricted Gaming" designation because of the grandfather clause. However, you will still need to provide qualifying information to move forward.

AND, lastly, there are still "tavern" sports bar properties available that are NNN Investment properties! Click on the Gaming button to the right for details!

For other Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

Record Housing Sales in Las Vegas?

2012-01-10T15:55:00.000-08:00

Published today in the Las Vegas Review Journal is a news story about how housing sales are through the roof.

I really don't understand how people are buying properties with the expectation of flipping them later this year or next.

The foreclosure crisis is of such magnitude in proportion that I am even scared to go after some of these properties. AND, with the "Robo Signing" cloud hanging over head, and the nevada DA pushing for How? and Why? answers, you could end up with a Lis Pendens on your property post close.

Then, again, if you are going to spend $2million or more on a SFR or Condo to hold and flip, why not just acquire a property at +9% Cap Rate that is a leased property that is a passive investment which would provide you income for the next two to ten years.

And at a +9% Cap Rate, you will re-pay your initial investment off in +/-120 months.

So, instead of buying a house to just sit there and possibly get vandalized, buy a proven leased property with a credit tenant.

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

Las Vegas Commercial Real Estate Tide may be turning! Yeah!!

2012-01-04T16:58:00.000-08:00

For some reason, 2012 is starting off pretty darn good.

This week, I emailed my hotel casino client and he replied that he is 'within a week' of us writing an offer for a prominent hotel casino. I am keeping my fingers crossed on that one. Sorry. I try my best to NOT talk about current deals that I am working on because of the ever lingering: "Fell out of Escrow" black cloud.

And, I have had three replies to inquiries I sent out about several restaurant/tavern sites that are NNN investments. There are six properties but my gut says only four are worth buying.

So, here it is, (actually) two days into this new "work" year and "things" seem to be moving in a positive direction.

It actually appears to be real time actual buyer/seller activity that has NOT been around for several years.

And, lastly, another client looking to wrap the property up that surrounds my listing: Ferguson's Motel. (Unfortunately, Tamaras doesn't return telephone calls.)

Anyway...

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

Beware of Out of state agents marketing Las Vegas Property

2011-12-27T14:21:00.000-08:00

What's with real estate agents from out of state marketing Las Vegas Properties?

They tease they have an exclusive insider tract on a Las Vegas Property. "Great deal!" they print.

When I am done puzzling together their vague clues about the property, I find out that these out of state agents don't know "jack" or even know much about the property itself that they are "marketing."

Case in point: Several downtown +/-50 unit extended stay motels owned by one entity DOES NOT make it a single multi-unit apartment property.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

Happy Hoildays to All!

2011-12-22T12:46:00.000-08:00

I just want to wish everyone a Happy and Safe Holiday Season!

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

Las Vegas Prices to drop more?

2011-11-29T13:39:00.000-08:00

I'd like to say it isn't so. But, the rumor I am hearing is: Home prices will be going down even more.

Unfortunately, there is talk that HOA's need to sue home owning banks because the Banks are so far behind in paying the required monthly HOA fee, that the HOA will most likely foreclose on the Bank for back payments. Which means a further loss for the bank. Yeah!?

So, in order to remedy the situation of past due back HOA payments, banks will need to get rid of a lot of their shadow inventory most likely the first of the new year because they will ultimately lose in a Trustee Sale.

So, do I feel sorry for the recent buyers? Not at all. They thought they were getting a deal buying then; now, the rest of us can get a deal on a SFR rental. And, yes! USA Today was reporting that there is a need for rentals because home owners who lost their homes are now gun shy about buying again. (I think part of that is due to the Fannie Mae mandated four year waiting period you need to wait in order to qualify for another home loan.)

As for commercial real estate, more and more, I am seeing notes being purchased. And, these are most likely at a discount. With office, retail and industrial vacancies being so high, it doesn't make sense to keep these properties either -- if you are an owner.

One of my clients has decided to stay put for now. His commercial property is paid for and he is collecting enough rent to maintain the property until the Las Vegas economy improves.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

Would you read a purchase contract for me?

2011-10-31T15:13:00.000-07:00

That's right. I was asked to read a purchase contract -- a contract inwhich I was NOT involved in creating in anyway. The Seller was being represented by a broker; and, the buyer was being represented by another broker. So, before I accepted, I had to let the attorney friend of mine know, that I can't give a BPO on this or the other brokers would hold me liable.

So, I read this contract. It was fo rthe purchase of a property with a house. (For those who are new, I do NOT work in the residential side of real estate.)

From what I could understand, the buyer was buying an option to purchase a home for a substantial sum. There was an escrow, there was a closing period. And, there was going to be a Grant Deed issued upon the close of escrow.

The initial red flag was the offerred price. It was ten times the value of the house. "Huh?" you asked.

That's correct. 10X the value of the property. The next red flag was that a Option was part of the purchase. The Buyer would pay $$$ per month for eighteen months. Not, bad. The seller would get some income for a year and a half.

BUT, the killer was that "Upon the close of Escrow, a Grant Deed would be issued to Buyer from Seller AND RECORDED. Are you with me? Did you catch what I caught? (It took me three re-reads to fully understand this one.)

So, I excuse myself from reading further. I was NOT apart of the transaction so, I gave the contract back to the person who asked me to read. That person only asked me one question: Did you see the problem they saw?

The one about the option and escrow closing with maybe only $1,000 dollars paid to Seller?
That person said, that's the one.

So, there was a little trickery involved. This is Halloween. Why not a little trickery?
Real Estate is funny. I didn't wonder about why they asked me to read this for them.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

Las Vegas "Strip" Land For Sale

2011-09-22T14:26:00.000-07:00

There is a property located along the Las Vegas Strip that is For Sale.

The price will seem high to a first time Las Vegas buyer. However, since the property falls under the Clark County Gaming Overlay and is in the "Resort Corridor," the Owner is being smart in their pricing. The property is large enough for developing a gaming resort with +/- 250 rooms, a Mall, and enough frontage along the "Strip" for restaurants or retail shops.

A Non-Circumvent Agreement is necessary so that everyone stays honest.

For Further Information about this Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

Las Vegas Real Estate Investing

2011-09-15T14:35:00.000-07:00

Recently, I read an article about a former professional football player who had signed a contract for a guaranteed $50 million over five or six years in 2003 or 2004. He is currently broke and living back with his parents.

Now, forgive me. But, how does that happen to someone?

Was it his posse? Was it his sudden change in lifestyle where he had to have the mansion and the Bentley? Did he really think that he was going to be able to live such a lavish lifestyle the rest of his life? And, on $50 Million? Duh! Of course, he did.

Now, if he had invested some money in a stock portfolio he would have lost some due to the 2008 market crash. And, if he had Owned Real Estate, such as a long term passive lease investment, he most probably would be still collecting rent and right on through the crash. Or, he would still be earning enough to live modestly on.

And, I am NOT just talking about Las Vegas Real Estate. This could have been anywhere in the country. There are and always will be, long term real estate investments that will pay -- even a "Star Athlete" over the long term -- ten to twenty years enough to make his "normal" bills per month.

Now, having a posse isn't my thing. I can't stand people just hanging around. That's just me. And, if I have to pay them to hang around, I'd rather be alone. And, if I am paying them, they had better give me a return on my money! Or, they would be gone!

So, if you know of a young up and coming "Star" and they are being pursued with the promise f big bucks. Once they have hold of said dollars, give me a call.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

Las Vegas Commercial Real Estate may be down but it's NOT out!

2011-08-23T15:32:00.000-07:00

That's right!
If Las Vegas was in a boxing match against the economy, it took a right cross and a left hook to the chin in 2007-2008.

If Las Vegas was in a UFC or Mixed Martial Arts fight, it was kick squarely in the groin.

Either scenario sent Las Vegas to the canvas. It was knocked down on it's knees. And the over powering Wall Street provided Economic Failure, pounced on Las Vegas with killer instinct and continued to pound Las Vegas in the head as it was laid low on that canvas. (The economy does fight fair. Las Vegas knew this. Because Las Vegas wanted it that way.)

But Las Vegas knows it is only down for the count. It is woozy and dizzily searching its surroundings with blurred vision for a way to stand and start giving punches back.

But, Las Vegas is making a come back as we sit and voice concern. I have several clients ready to pounce. I have given them the okay to move forward. (Unfortunately, getting the clients here from there has been the challenge.)

But they will come and they will buy. And now that I have my own company and don't have to answer to a broker or even partners, I will prevail beyond my wildest dreams.

Am I counting the commission before the close? NO! But without the mandatory "make me money" hanging over me, I am at ease and will prosper accordingly.

So, I may be down along with Las Vegas. But, I am rising from the canvas, too. The Wall Street economic failure may feel brave and bold. But, just wait until it starts to feel the severe pain of my punches.

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net

Calling all dumb real estate investors!

2011-07-30T09:11:00.000-07:00

First, I am almost there. It's been four years since my last closed sale. (I am sad to admit.) But, I am close on about four maybe five properties. The problem continues to be investor anxiety -- especially the ones I am working with.

Second, every buyer (that I am working with) is expecting a deal. No, that's incorrect. They are expecting a sweet deal! And unfortunately, I do NOT have any investors who think prices are at current sweet deals. So, I languish on.

However, over the past year, I have seen some sales that closed that were NOT sweet deals and the buyers were talking about them as if they just took the previous owners (banks) to the cleaners. And, I am sure the buyer believes they did just that.

For example: an apartment complex converted to condos over the past ten years sold for +/-$50,000 per unit. In my search of comparables in the area for another apartment investor, those very same type of condos were listed individually at +/-$25,000 to +/-$30,000 per unit. Were my clients smart? Were the buyers dumb? (I wish I had dumb buyers.)

Also, there was an office transaction where the former lease listing agent had told me he never could get the occupancy above 70% occupied -- even in the good times. The issue preventing 100% occupancy was the parking. Did the buyer know about this issue with the property? Was it disclosed to the buyer? Or, did the buyer choose to ignore it? And, even though there is this huge occupancy problem, the new owner "knows" -- his words -- that he can get this leased up 100%. As far as I can tell, the parking is still an issue preventing 100% occupancy.

So, since I pride myself on being truthful. I pledge to help dumb buyers before they get themselves caught up in problem properties.

Unfortunately, if you are already in escrow or working on buying a property, I can NOT help you. (I am deathly afraid of litigation.) But, on anything new and into the future, please contact me. A Dumb Investor intelligence test is NOT required. :-)

For Information about Las Vegas Commercial Investment Property, contact David Howes at: david@davidhowes.net