Strategy is Important Component with High Rise Condo Hotel Purchases

Everyone has their own investment strategies and goals. When considering the purchases of high rise condo hotels, the first thing you need to do is determine what type of investment you're most comfortable with and access your risk level accordingly. Once you've convinced yourself that a Las Vegas high rise is consistent with your investment strategy, the next important step is to actually buy one. Many people get caught up with "analysis paralysis", which in this market will cause you to miss out on excellent opportunities that others will take advantage of before you if you wait too long. Remember that if you really think about it, you make your money on the purchase, so if you never actually get into the market, you'll be waiting on the sidelines when others are drinking martinis from their high rise balconies.

And don't get too caught up in the idea that you have to buy at first phase in order to make money. With the way the market is going these days, there are many opportunites for unit appreciation regardless of when your purchase is made or what number tower is currently being offered.

Then there's those questions about whether to rent or live there... or whether to sell after closing or keep the unit long-term... perhaps a 1031 exchange... That's the beauty of this market - there are so many options and alternatives. The basic advice again is to do whatever is consistent with your longterm growth strategy, risk tolerance, and personal ease of mind, which obviously varies from person to person.

Selling short term may provide a quick return, but may be short sighted in that you'll miss out on further appreciation. A longer term holding may provide a positive cash-flow and equity buildup as you ride out the ups and downs of the market over time, which historically maintains a long-term upward path. Either way, it's wise to clearly define what your exit strategy will be before you commit to a purchase.

My advice is to do the homework associated with every project in town that interests you. Consult your attorney and/or accountant to fully understand the risk and tax implications of this type of real estate investment. Read, watch, and learn - and don't forget to seek the advice of professionals who live and breathe the marketplace.