As a residential real estate investor, one of the main things you need to know is how to find inventory at the most competitive price. If you're paying too much for a property, you won't be able to find a suitable exit strategy that will allow to profit from the deal, in which case you don't have a deal!

Here's a system I'd like to share with you: the process of a residential transaction and being able to buy it at a discount and exit with the right exit strategy at the right time.

One of the ways I get inventory at the right price is I have multiple agents; I call them bird dogs. I have an extensive network of professionals and I am always networking.

I network with different individuals that are professionals in the real estate industry, and I have them search and hunt for properties that fit our criteria. I give them the specifics of what I'm looking for, and they go out there and start submitting offers on my behalf.

As a result, people are always looking at me as the individual that is going to be able to purchase the inventory, and I become that exit strategy for those bird dogs out there.

I have a put-together system to incentivize those agents, those bird dogs out there, to bring me inventory. Every day people are out there motivated, looking for inventory so they can bring it back and sell it to me. I have the infrastructure in place to enter and exit the properties.

I get properties from banks as well, known as REOs. Recently the market has changed a little bit, and the banks are holding back that inventory to some degree. But the moment those properties are released again into the market, I already have the systems in place that allow the banks to come immediately to me and say, "Hey, I have this inventory. Here it is, buy it." The banks know that I have these tools to quickly and easily purchase those properties.

Short sales are another opportunity to buy property below market value. A few years back nobody knew what a short sale was, and even though many real estate professionals still don't properly understand the art of them, they can be avenues to investing wisely. I do short sales for multiple agents that have the ability to scout the properties and therefore I get the offer submitted at the discounted price.

Another method to building your residential real estate portfolio at the right price is through buying nonperforming notes. I like to buy nonperforming notes because I have the systems that help us acquire the real estate, and that is key.

Again, I'm very specific as to the criteria I use to buy. And none of this would be successful without having first built the correct systems to handle this inventory. But all of the above have worked well for me, and, with the proper training, can work for you too!

One deal to financial freedom? Luis Roque invites you to get access to ask the real estate experts who are mentors to millionaires today! Attend the next free commercial real estate webinar with some of the nation's leading real estate experts: Real Deal Commercial Webinar.

Luis has over 10 years of lending expertise working for the largest lending institutions in the U.S. Luis has also worked for investment companies as a consultant to oversee the investor relations, and residential real estate acquisitions departments. Luis is a managing partner of HIS Real Estate Network residential and commercial buying group.

Home values are down more than twenty-five percent from their peak in 2006 and continue to fall rapidly across the country. Some experts predict an additional fifteen percent decline in the upcoming year. As a result more than 12 million homeowners now have mortgage debt that exceeds the value of their homes.

WHAT IS A SHORT SALE?

A short sale occurs when the lender agrees to discount a loan balance and accept less than the total amount due incident to the sale of a home due to financial hardship. In today's economic environment more and more lenders are initiating short sale programs to assist people in selling their homes and thereby avoiding foreclosure.

WHO QUALIFIES?

Once homeowners find themselves in a circumstance where their home is worth less than the mortgage balance this is just the beginning of the process to determine if they are eligible for a short sale. Moving into 2009 more lenders appear ready to assist homeowners in loan modifications and short sales in an attempt to slow down the ever growing foreclosure crisis.

In virtually every short sale negotiation the lender will be looking for a statement of hardship from the homeowners which explains why they need relief and more specifically why the homeowners cannot pay the difference still due on the mortgage after the short sale. Declining property values coupled with a need to relocate or upwardly adjusting mortgages and unable to refinance are the beginning, in many cases, of the hardship picture. The declining home property value, increasing adjustable rate mortgages coupled with unemployment greatly defines the downward spiral leaving many homeowners in desperate need to sell their homes, which would not be possible without short sale assistance.

THE SHORT SALE PROCESS

The first and most prudent step would be to seek the assistance of a competent real estate lawyer to assist in the process. While each lender has their own specific requirements there is a consistency in the nature and type of documentation that can be expected.

The first step is to contact the lender to see if they have a person or department set up to respond to inquiries regarding short sales. While the situation seems to be improving as lenders become more and more organized in dealing with short sales it still may require some persistence in getting the proper individual on the phone to ascertain the lender's procedure.

Once contact is made with the workout or short sale department typically a lender will want an authorization signed by the borrower(s) which would allow the real estate attorney to communicate directly with the lender regarding the potential short sale. Many lenders will merely accept a letter, others will require a signed authorization and still others will require their specific written authorization form to be signed.

Once proper contact and authorization is in place the following requirements can be expected from your lender:

o Hardship Statement

This is a written statement which describes for the lender what has changed making it difficult/impossible for the homeowners to continue paying their current mortgage. Specifically, this is the statement where it is outlined for the lender if the homeowner(s) has lost a job or had a significant decrease in income, was hospitalized or had some other unexpected illness or medical emergency contributing to their problems, or simply had their mortgage adjust up making the payments no longer affordable. Again, your real estate attorney should assist you in writing this letter making a strong plea to your lender to accept less than the full payoff.

o Statement of Income/Assets

Most lenders will require a financial statement outlining all liquid assets, including savings accounts, checking accounts, money market accounts, stocks, bonds, cash and other real estate. Obviously this statement needs to be consistent with the facts outlined in the hardship statement in order for a lender to seriously consider the request. In many cases the borrower should be prepared to provide backup information including bank and other statements for the accounts disclosed in your statement of income and assets.

o Appraisal/Comparative Market Analysis

As part of the short sale process most lenders will require either that an appraisal be performed confirming the value of the property or in the alternative a current market analysis obtained from a real estate agent which will compare the suggested price of the home to that of similar homes that are either currently on the market for sale or have recently sold.

o Listing Agreement and Purchase Agreement

Many lenders also require a copy of a Listing Agreement with a real estate brokerage for the sale of the property together with a copy of the Purchase Agreement for the sale of the property as part of the short sale package. Obviously, any such Purchase Agreement should be carefully worded to include language that the sellers' obligations are expressly contingent upon lender approval. The lender may also require a preliminary settlement statement or net sheet which includes estimated closing costs and reflects the bottom line payoff to the lender.

In most circumstances after a complete short sale package is received by the lender it will take thirty to sixty days for approval and if granted sellers may move forward and close the sale of the house to the prospective purchaser.

CREDIT CONSEQUENCES

Selling a property by short sale will cause a hit on the sellers' credit report and in many cases the affect on credit and FICO scores could be the same as a foreclosure. As such, a short sale should only be considered, and in most cases will only be considered by your lender, to avoid a foreclosure. The good news for short sale sellers is that in most circumstances the wait involved before qualifying for a loan to buy another home is much shorter than if a foreclosure occurs. New Fannie Mae guidelines now require only twenty-four months seasoning before a short sale seller can again buy with a reasonable interest rate. In most cases a person who wants to buy another home after a foreclosure may end up having to wait as long as thirty-six to seventy-two months before a lender will offer a reasonable interest rate in relation to the current market.

One of the key areas that must be negotiated for sellers incident to the short sale is whether or not they will be subject to a deficiency judgment, meaning having to repay the difference between the loan amount and the amount paid to the lender at the short sale. In most cases it is up to the lender to decide whether to require a payback of some or all of the deficiency and as such the seller should discuss this matter with a real estate lawyer prior to finalizing a short sale. A lender's position regarding pursuing a deficiency varies from institution to institution and is greatly impacted by the hardship circumstance as well as the seller's income and assets. In many cases a good attorney can present the case to a lender and reach some agreement that is acceptable with regard to the deficiency.

TAX RAMIFICATIONS OF A SHORT SALE

While I am a licensed attorney, I am not a CPA and cannot advise on tax consequences. Generally speaking the cancellation or forgiveness of debt is included as taxable income. If a lender forgives that balance of a mortgage there is cancellation of that debt which could be taxed as ordinary income. Fortunately, tax relief has been enacted for such debts secured by a principal residence. Congress has passed the Mortgage Forgiveness Debt Relief Act of 2007 which is effective for discharge of indebtedness on or after January 1, 2007 and before January 1, 2010. The federal bailout legislation passed in October, 2008 extended this relief through December 31, 2012. In most circumstances, under this law, the forgiveness of debt incident to the sale of a qualified principal residence is excluded from taxable income.

CONCLUSION

Given the ever changing challenges of today's economy short sales are going to become more and more prevalent. With continued declining property values homeowners are in need of assistance and both lenders and the government are recognizing this need and enacting programs to provide for that assistance. While a short sale will have a negative impact on credit in many cases it is the only opportunity a seller may have to avoid foreclosure and will potentially afford the short sale seller the opportunity to qualify to purchase a new home sooner. The need to get out from underneath the negative equity is something that has been recognized by our government and the IRS but should only be considered after consultation with the appropriate real estate and tax professionals.

Always seek legal counsel before attempting to pursue a short sale. A real estate agent, although qualified in other aspects of real estate, is not qualified or licensed to give legal advice.

Is commercial real estate investing a better investment than investing in residential properties? Now, we all know that real estate in general is a great investment vehicle and both residential and commercial properties can be good investments. Either avenue can have a tremendous effect on your net worth, but most people think only of residential property when they think about investing in real estate. While this is certainly the most viable route for most people, commercial property can offer additional benefits the residential model can not offer.

Three Reasons Commercial Investments are better than Residential Deals:

1.) Commercial Real Estate Gives You More Access to More Capital

It has been my experience that it is somewhat easier to raise larger amounts of capital (under $3M) for a commercial deal than it is to raise $150,000 for a residential deal. As a residential investor your access to capital is limited primarily to traditional financing, hard money lenders, and private money from individual investors. If you are unable to raise capital from one of these three avenues, then you are forced to acquire property in more of a creative manner with owner financing, subject to strategies, lease options, etc. This in itself is not a bad thing, but unfortunately you will have to walk away from some good deals that can't be acquired with creative financing techniques.

In commercial real estate it is more common for investors to pool their capital together and syndicate deals, you will also find that smaller private equity firms and finance companies are more inclined to do joint venture projects and provide the needed capital to complete the deal if the deal makes sense. So as a commercial investor you have the potential to raise capital for a deal from the same sources as residential projects such as: Traditional Financing and Hard Money, but additionally you could access capital through smaller private equity firms, hedge funds, private REITs, investment groups, and the list goes on.

There also seems to be a sense of intrigue and prestige when it comes to investing in commercial deals. Perhaps, due to the state of the current commercial market, it appears investors are trending more toward investing in commercial projects.

2.) Commercial Real Estate is Less Competitive

When you think about it from a marketing perspective, most investors target residential property owners, thus making the residential market more competitive. In many arenas, from industry news sources, the World Wide Web, all the "We Buy Houses" signs virtually on every street corner, there are a lot of marketing tactics targeting residential property owners. If you take the same marketing strategies discussed and apply them to commercial real estate, you will probably find you are the ONLY person contacting these commercial property owners in regards to selling their property. Most commercial properties under $5 million tend to be too large for most residential investors, yet too small for most institutional investors.

3.) Commercial Real Estate allows for "Forced" Appreciation

Residential properties are typically valued based on other comparable properties that have sold in the area and are similar in features. If the "comps" for a 3 bedroom/2 bathroom house in a particular neighborhood is roughly $100,000, then your property is probably going to be worth $100,000. It doesn't matter too much if your target property has additional features, or if your house is getting $900 a month in rent as opposed to the house down the street that is only renting for $700 a month. All things considered, your property will still be valued pretty close to the "comps" of the area.

However, in commercial real estate, the valuation of a property is based on the revenue that the property generates. Now, commercial properties are still subject to the "comps" of the area as it pertains to "How" that revenue is valued in terms of capitalization rates. But, the overall premise is that, the more revenue a property generates, the more that property is worth.

So, in order to "force" the appreciation of your commercial property, you need to find additional ways to increase the revenue that the property generates. A small increase in revenue can increase the value of a property significantly depending on the "Cap Rates" in the area for that type of commercial real estate. Unfortunately, with residential real estate this isn't an option as you really can't force appreciation. Your property will be valued in the general range of the market comps.

So, as you can now see, commercial real estate offers many benefits over residential investments in addition to higher returns on your investment.

Now of course there are disadvantages with any investment vehicle, commercial real estate included. However, consider the following when choosing between residential or commercial investing to create your passive income stream;

1) The building qualifies for the loan; Not the borrower

2) The building pays back the loan; Not the borrower

3) Others are expected to manage the building; Not the borrower

4) Income determines the value of the property; Not the comps

5) Cap Rate measures demand for the property; Not the comps.

To sum it up: a commercial property's value is eternally tied to the income the property produces and overall demand for the property's services. Therefore, based on the property's location and the highest and best utilization, commercial real estate investments can certainly create a larger return on your investment over time verses residential investments. Perhaps, this is even more true in our current market cycle.

Sam Ally invites you to learn to earn high and even INFINITE returns investing in commercial real estate with a group (on money you used to have sitting in pathetic CD's at 4% or less) when you become a Select Member with America's #1 Real Estate Network today!

We hear this often from real estate investors: "What's the smarter move? Residential or commercial investment property?" It should come as no surprise that there isn't a one-word answer to this question. You'll arrive at your best choice -- the one that maximizes your chances for success -- by working through a decision process that includes some "global" issues, some local and some that are entirely personal.

Definitions

Let's start with some terminology. For the purposes of our discussion, we'll define as residential any property that derives all or nearly all of its income from dwelling units. Single-family homes, multi-families, apartment buildings, condos, co-ops are all residential. (FYI, the tax code classifies any property in which 80% or more of the gross income comes from dwelling units as residential, so many mixed-use properties can be classified as residential for tax purposes.)

For commercial property, we'll use a typical layman's definition: property that derives its income from non-residential sources, such as offices, retail space and industrial tenants.

Why do I say that this is the layman's definition? Because appraisers and lenders would consider large (>4 unit) apartment buildings to be commercial investment property since they are bought and sold strictly for their ability to produce income and not as a potential personal residence for the owner/investor. However, it will suit our discussion better to treat all apartment buildings as residential properties.

Global Issues

What are the global issues that should affect your choice to buy residential or commercial property? The state of the U.S. economy certainly tops the list. If you believe we are in or are on the brink of a recession, then it makes sense to be cautious regarding commercial property. You will have to rely on businesses to occupy your commercial space, and if they're struggling to survive or simply deferring their plans to expand, then rental rates may soften and demand for space decline. Replacing a lost tenant -- especially one lost unexpectedly (in the middle of a lease, or the middle of the night) because of a weak economy -- can take longer than it might in unstressed economic times. When the economy and employment are strong, of course, you are likely to see the opposite. Service businesses need more space, retailers open more stores, distributors need more warehouses.

Another issue is the cost and availability of financing. Interest rates are always important to investors, but there is one situation that may strike you as counter-intuitive. When home loans are readily available and mortgage rates drop, it's not uncommon to see an increase in apartment vacancies, making apartment buildings less desirable as investments. The reason? Low mortgage rates and easy credit often mean that individuals can own a home at a monthly cost that is the same -- or less, after taxes -- than renting. So part of your potential tenant pool may be lost to home ownership.

Local Issues

In the real world, each of these global issues comes with a "however" attached. You need to stay on top of your local market because that market may contradict the national trend. For example, highly restrictive zoning regulations can mean that commercial space is always in short supply in a particular location, recession notwithstanding. And the cost of single-family homes in your community may be so high that there will always be a strong demand for rentals. Think globally but act locally (with apologies to environmentalists for borrowing their slogan).

Personal Issues

You could buy a property and then insulate yourself from it by turning over every aspect of its operation to a management company. But if you've never operated a property yourself, how would you know if the management firm is doing an acceptable job? Most investors begin as hands-on managers and your chances of success will be greater if you choose a type of property that you're comfortable with.

So, at the personal level, will residential or commercial suit you better?

Unless you were raised in the woods by wolves, there is a very good chance that you've spent most of your life in a residential dwelling unit: a single-family house, a condo or an apartment. You have a first-hand understanding of the rights, obligations and appropriate behavior of a residential occupant. If you were a tenant, you probably also know something about the roles and responsibilities of both tenant and landlord. It is for this reason that first-time investors often lean toward buying a small residential building. You may not know the fine points of leasing and landlording, but you understand the basic ground rules. This is familiar and comfortable territory.

Of course, some novice investors come to real estate with a background in business and perhaps as a commercial tenant. If that description fits you, then becoming a commercial landlord may be an easy transition. You already have firsthand knowledge of how commercial lease deals come together, and what the parties typically expect of each other.

The Pros and the Cons

Like any of your investment choices, each type of property has its pros and cons. For example:

Residential Pros:

1. Residential units are generally easy to rent. Turnover in housing is high, so your pool of potential tenants tends to be large.
2. Leases are generally short, especially for apartments, so you can keep pace with the rental market. This means cash flow tends to be fairly strong with a multi-unit residential property.
3. Financing residential property is usually fairly straightforward. For smaller properties, the process is similar to financing a home.
4. The cost per unit tends to be lower for residential than commercial. The more units you have, the less likely it is that a vacancy will severely impact your cash flow.
5. You could live in one of the units of a multi-family property. Obviously it's easier to keep an eye on the property if your eye is actually there.

Residential Cons:

1. Residential properties usually require a lot of hands-on management.
2. Residential properties usually require a lot of hands-on management. (That's not a typo. I said it twice.)
3. With a single-family home, one lost tenant equals 100% lost rent.
4. Multi-family houses tend to be older and therefore may require more repairs and maintenance.
5. Residential tenants don't keep office hours, so you can get a call or complaint at any time of day or night.
6. Larger multi-unit properties generally have a lot of traffic in common areas and will require greater upkeep.
7. Did I mention that residential properties usually require a lot of hands-on management?

Dealing with commercial tenants is quite different. Ideally, it's business, not personal. You may require a personal guarantee on a lease, but you should expect to have more of a business-to-business relationship.

Commercial Pros:

1. Typically leases are longer, with built-in rent escalations. Five years, with options to renew is not universal but certainly quite common. Except perhaps for small offices, few businesses would be willing to go to the expense of becoming established in a particular location without a guarantee of more than just one year.

2. Many commercial leases pass through to the tenant a pro-rata share of certain expenses (or a pro-rata share of the increase in certain expenses, over a base). For example, the tenant may be obligated to pay its pro-rata share of property taxes and common-area maintenance. This helps stabilize the cash flow for the landlord and makes that cash flow more predictable.

3. Management is less hands-on than with residential. Renewals are less frequent. Many commercial leases are written to include the requirement that the tenant be responsible for interior repairs, HVAC maintenance, glass breakage, etc.

4. Depending on the type of space (i.e. more common with retail and high-end office), the tenant may fit-up the space to suit itself. The landlord may give a one-time fit-up allowance or a period of free rent, but the interior finish then becomes the tenant's responsibility to maintain.

5. Because the property's value is strictly a function of its income stream, you have the opportunity to create value by enhancing that income stream. In other words, you don't need to rely on general market "appreciation" to increase the value of your property, but can take steps to do so yourself.

Commercial Cons:

1. Trying to purchase a commercial property on a shoestring may not be a realistic plan. Lenders are generally tougher underwriting commercial loans, especially if you have no experience operating commercial property. Down-payment requirements tend to be higher, as do interest rates. Loans are for shorter terms and often have a "balloon" requirement (i.e., must be refinanced before the nominal end of the term). The property will have to pass muster in terms of its projected cash flows and debt coverage ratio.

2. Leasing a commercial space can take much longer than leasing a residential unit. After a tenant is identified and basic terms agreed upon, it is usually necessary for attorneys for both sides to negotiate the language of the lease. The complexity and cost of this process can vary greatly, depending on whether you are dealing with a local or a national tenant.

3. Filling a vacancy can take much longer than with a residential unit. Commercial leases will typically require that a tenant exercise an option to renew well before the lease expires -- perhaps six to as much as twelve months prior -- so that the landlord can have ample time to look for a new tenant.

4. Financing commercial property can be more complex than with residential. You'll need to demonstrate to the lender that the property will perform at a level that can can cover the debt service with room to spare.

5. If you don't have experience being a commercial tenant, then becoming a commercial landlord may require that you get familiar with some concepts and skills that are particular to the commercial world. You'll want to learn about "tenant mix" if you own retail space, about commercial insurance and about the billing and reconciliation of pass-through expenses.

While there is certainly no right answer to the question, "Residential or commercial?" there is probably a best answer for you. Do you want the hand-on involvement of residential? Do you have the resources for commercial? Do you want the potential for higher cash flow, and with it the possibility of greater risk? Do you prefer a more modest but more predictable return? Consider your objectives and preferences carefully, and evaluate your resources -- time, money, skills -- realistically. With a bit of luck, the answer should jump off the page.

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 we are starting to see coming to the market.

Granted our dear congress-persons have been too busy in-fighting over social programs as too costly, thus trying their best to stop any economic turn for the better at any cost.  Thus, the economic tide is building momentum and will continue to roll forward.

Here is an excerpt from GlobeSt.com.


Your choice.  I think whether or not prices have bottomed in Las Vegas is moot and the smart investor starts investing now.

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

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.

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

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

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!

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.

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!

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

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!

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