For some of us that would rather be proactive then Reactive on what is taking/about to take place in the real estate market, I always appreciate a well thought out post by somebody such as Matt Heaton who tells it like it is on the new stimulus bill.

Politicians are reactive and certainly not proactive. They have little clue of spotting trends of what is taking place and that's where we need good information and good forecasters.... we need good real estate agents and not just reporters of statistics on what already happened.

Anyways... It was about a month ago when I was driving by a Bar/Restaurant and I had to slam on the brakes, cut somebody off and make an illegal U-Turn. This was not any ordinary Bar/Restaurant... it was a Bar/Restaurant that I ALMOST got to buy and manage for a client way back in 2003 offered for 1.6 Million dollars.

Back in 2003 we looking at this particular Bar with a limited gaming license (15 gaming machines and the really hot ticket to owning a bar in Las Vegas) and were provided the financials to justify the price. For some reason... the restaurant revenues certainly made absolutely no sense to me and in fact.. I suspected they were certainly cooked.

Unfortunately... before I could get more information that I was asking for when doing our own due dilligence... the place was sold. Oh well...$60,000 a month selling Pizza and a handful of people coming in everyday to the restaurant side just did not make sense in my book... LOL!

OK... Flash forward to around one month ago when I slammed on the Brakes and Made a U-Turn at the last moment...

What caught my eye was the Big "For Sale" sign in front of the Bar. I thought I would stop in and take a peek to see if it had been updated since the last time I had seen it. When I pulled up.. I noticed it was all boarded up. For me... certainly surprising due to the location and I had to think that whoever bought it was a complete moron for letting it go under. Keep in mind it's a hot location in Las Vegas near Summerlin with fantastic demographics and traffic reports that would make Nascar jealous.

I called the agent on the sign and inquired on the price and the agent gleefully informed me it was bank owned and available at the great price of $2.85 Million.

I had to ask that agent how a bar that was now closed could be worth more in these current economic times compared to 2003 when economic times were far more positive. He had no explanation because and thought it was a great deal because the previous owner had tried to sell it for $3.3 Million. Perhaps I should send him some notes on the amount of bank repos taking place and the number of Las Vegas residents that have cut back on the expenses and started saving money.

We've been so busy with Las Vegas short sales that I never really put too much thought on what has been going on with the commercial real estate market lately except knowing that it's seen better days. Obviously with all of the vacant buildings you see available for leasee all over Las Vegas. Maybe you see this in your market with vacant commercial real estate popping up all over the place like we see. When we come across a place like this with the surrounding demographics of over $70,000 within a one mile radius and the place is all shuttered up... it really makes you think.

Last week, Chili's suddenly closed down three restaurants in Las Vegas. My background knows that Chili's is a tight run ship (with yummy sizzling Fajitas) and I estimate at least 50 employees each times three for 150 employees total just got layed off.

The sad part is... I don't see anybody taking up their space anytime soon. Look around... payments for these places are coming due and unfortunately I see a new crisis popping it's head up and it's not pretty. Forget about the number of projects that have been halted due to the times... think about what has happened now that the giant pool of money has left the economy.

An $8000 tax credit to help the residential real estate market? Too little... way too late anyways and unfortunately our elected officials don't even seem to see what's coming... and like the residential real estate market... by the time they do, it will be too late.

Gloom and Doom? No intention.. Just trying to point out the obvious.

House of Cards - hidden message here is how much money was spent on everything from everybody making money on real estate... which has now dried up.

The Tax Revolt - We can only hope that half of what this guy says does not come true. NASTY....

The Real Estate Crash and the Effect on Your City -- Bury your head in the sand or be Proactive and really become a resource for your clients.

Happy Presidents Day -- Hugo Chavez gets his wish on our President's Day

President signs the new spendulus bill of massive debt and the DOW tanks... Oil is down and Gold is going up again. If you don't know why... start figuring it out. 

Paul Francis, CRS
Las Vegas Real Estate
702.592.3058