Downtown Henderson, Nevada

[Duane L Hutchings]

Investment Info:

Other commercial investment investment.

Purchase price: $675,000
Cash invested: $120,000

Property taken back by lenders in the economic downturn and Housing crises in 2008, in the Las Vegas, NV, Valley. Finally built out by Clark County Credit Union.

What made you interested in investing in this type of deal?

Property was originally a small hotdog building, residence and floral shop on a hard corner of Lake Mead Parkway, Henderson, NV 89015. Henderson City offered a low 3.5% interest loan for redevelopment.

How did you find this deal and how did you negotiate it?

My personal residence was in a Development called Calico Ridge, in Henderson. I drove past the site daily to get home in Calico Ridge. The City of Henderson offered an incentive of a low interest rate to assist with redevelopment of the site.

How did you finance this deal?

I had initially gotten the property with personal funds plus a hard money loan. This was my first development of my own. The 2008 recession and economic crisis caused many millionaire investors to lose everything in 2008. While not a millionaire I did lose this property as well.

How did you add value to the deal?

I did all land survey, architecture, engineering, and razing of the property. It was a planned office building and mixed use development.

What was the outcome?

It was sold at auction and Clark County Credit Union purchased it and built a credit union building onsite with a drive thru coffee building at the west end of the site.

Lessons learned? Challenges?

When the sky appears to be the limit, do not take extraordinary chances. Do not invest alone and this is why a syndication seems a great way to do a real estate development.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I was a Broker Salesman at the time since 1995. I did attempt very hard to work with normal lenders. It obviously turned out to be the wrong time for an investment of such a degree. I recommend to not take on hard money loans and investing with others who can also invest when it will not necessarily (totally) hurt them or me in the end is a hard lesson to learn but it is a great recommendation.