Don't Be Mis-Informed About Las Vegas High Rise Condo Hotel Legalities and Requirements

This really isn't what I wanted to devote my final post of 2007 on, but there's been a lot of confusion lately in the Blogosphere and in the Las Vegas high rise condo hotel marketplace in general regarding what actually constitutes a "condo-hotel" versus a strict condo and what high rise condo hotel purchasers really need to know before they make an investment decision in any condo hotel project in Las Vegas (or anywhere for that matter).

Let's address the matter of whether you can actually live in your condo hotel unit or is there a requirement to continually rent it out? The answer is a definite yes - you can live in your own unit whenever you want to. There's no stipulation that says because a condo project is designated as a "condo hotel" that it must be used 100% for investment purposes. I've seen this being incorrectly posted in a number of blogs lately and it's giving prospective purchasers the wrong idea of both their ability to use their unit for themselves as well as the potential cash flow they can derive from it.

And speaking of cash flow, according to the SEC it is ILLEGAL for any real estate agent to make ANY representations of how much money or what kind of rental rates your high rise condo hotel will command. Illegal! Yet, I see and hear (and read on blogs) many times agents telling people they can get "X" amount of rent per night, thereby giving investors an inaccurate, irresponsible, and illegal representation of things to come.

Also, as I mentioned in a previous post - and commented highly by many of my high rise blog readers via email - purchasers of high rise condo hotels are in no way obligated to use the rental management company associated with the high rise condo development. As such, Trump unit owners do not have to rent their units through the Trump rental management program if they don't want to (thank your stars for that one!). Condo hotel owners are free to choose any management company they desire (or do the rental management themselves).

Read this and understand it well: Developers of Condo hotels (and the real estate agents and brokers selling those properties), can not:

• Advertise that the condo hotel purchaser will make a profit on his/her unit.
• Discuss rental agreement terms until after closing (which is a big catch-22 because you don't want to make the investment until you know the return, but you won't know the return until you make the purchase!)
• Impose any restrictions on the owner's use of their unit or make the rental program mandatory.
• Offer any guaranteed minimum return for any set period of time.

Now these aren't my rules, or Nevada's rules for that matter. This is coming straight from the Security Exchange Commission (SEC) which if not followed will make your condo-hotel be considered a security which needs to be registered and will probably result in significant obstacles, time delays, and additional expenses when you eventually go to resale. Not including federal securities law penalties!

There's so much misinformation out there regarding these investments, it would be wise of those considering the purchase of high rise condo hotels to only work with agents who truly understand the implications and workings of the law regarding these properties as dire consequences await for both the buyer and the real estate professional who choose to ignore what the market requires.

So what's the difference between a hotel unit owner and a residential unit owner? This link should be of help. Or if you don't feel like reading through it all, just contact us and you'll get the true scoop of everything high rise condo wise, and not from those other bloggers and agents who are giving you pie in the sky nonsense.

You can also get further info on this topic by reading James Norman's article on the subject at the Holland & Knight website. Condo hotels are still relatively new investments, but their popularity is growing rapidly. Just know the correct facts before signing that contract...

Trump High Rise Condo Hotel Rental Split is 50-50%, So Where's the 3rd Fifty Percent?

Donald Trump's amazing Trump Las Vegas high rise Tower is just about finished and will soon be ready for move-ins. That's the good news. The bad news is, unless you're a really high net worth individual and bought your unit without positive cash flow intentions, you're not going to be very happy about your high rise condo hotel purchase. You see, the rental program at Trump is apparently offering a 50-50 split to unit owners, and that's after 10% is taken off the top!

You have to do the math on this one - or rather, don't do the math. It's way too scary, because one must wonder about the proverbial "3rd 50 percent". If you bought into Trump already as an ego-driven purchase, as in "I have the money and I want to indulge myself", then congratulations - you bought into one of (if not the best) luxury projects in town and you'll be very happy.

However, if positive cash flow was your goal, visit this website instead or hope the entire nationwide real estate market bounces back really quickly. And I'm not going to say I told you so. But rather I'd like to provide you with a resource instead. Instead of joining the growing number of disillusioned small time investors who got in way over their head with the idea of flipping a Las Vegas high rise condo unit such as Trump, (many are actually willing to forfeit their entire 20% deposits rather than closing), contact us immediately, as I think we have a strategy that will get you off the hook with minimal damage.

You need only turn to the resale market for units at The Signature at MGM to see what the effect of a non-positive cash flow investment can do for unit value. If you can close, hold your unit for 3-5 years, and then maybe think about selling it, I have a feeling you're going to do quite well with your Trump unit. If you can't, then we need to hear from you... (name and phone number please)

The Plaza High Rise Condo Hotel Casino Project Gets Initial Approval from Planning Commission

If the Las Vegas high rise condo marketplace is so bad, why does the Clark County Planning Commission continue to approve project after project - even those that are facing legal issues as well?

The multi-BILLION dollar Plaza, to be located at the recently imploded New Frontier's 34.5 acre site, is being built by the Elad Group with plans to become the largest casino project on the Strip. Oh wait a minute - I just answered my own question! Money...

I guess if they commission approves enough plans, eventually something will get built, and the larger the price-tag, the more grandiose the development. In the case of the Plaza, the financial backing is excellent and with plans for a mixed-use project with a French Renaissance architectural style to be modeled after New York City's Plaza Hotel, you really can't go wrong with this one.

Seven towers (671 feet high and taller) will make up The Plaza, which will contain a total of 4,100 hotel rooms, 2,600 condos, and a 175,900 square foot casino when complete.

There's only two small problems: one - Elad's currently being sued by their real estate broker for $12 million in unpaid commissions plus damages and two - a court fight over who owns "The Plaza" name is also under way, as there's currently a "Plaza" operational in downtown Las Vegas. You know how long legal battles can go on for.

Good thing construction isn't slated to start until late next year. And with a completion date estimated to be sometime in 2012, there's plenty of time to sort everything out. Final approval before the Clark County commissioners will be January 16th, 2008. Anyone want to bet this project WON'T be approved? There's no bigger upset in town!

The pricetag on this project won't be cheap for high rise condo hotel investors, but if you'd like me to put you on an interest list when they start taking reservations for this project, just let me know (please include your name and phone number).

Strong Words from Las Vegas Condo Developer Regarding Mid-Rise Competitor's Cancellation

Today's Las Vegas Review Journal reported on a story that many in the Las Vegas high rise condo realm (and especially readers of this blog) have known for quite some time: namely, the demise of the Light Group's Spa Lofts condo project, a 147 unit condo development planned at Rainbow and the 215. (That's what's great about blogs nowadays - they break the news and the mainstream media follow their leads!)

Anyway, here's what a competing mid-rise condo developer, ManhattanWest's CEO Alex Edelstein, had to say regarding Spa Loft's cancellation:

"Spa Lofts is getting canned because it doesn't have any buyers and it doesn't have any buyers because ManhattanWest is taking all of them... We drove SpaLofts out of business."

Wow... those are pretty strong words.

But in fairness to Spa Lofts, perhaps this project is being cancelled so the Light Group can devote more energy towards their development of the Harmon Residences at the fabulous MGM-Mirage's CityCenter high rise condo project. The Light Group has a humongous database of investors and buyers to draw from and when faced with the option of developing either Spa Lofts, or an incredibly prestigious real estate opportunity that's a unique world renowned opportunity, I'm taking CityCenter.

And in fairness to Mr. Edelstein, his ManhattanWest project has been one of only a handful of logical alternatives to high rise condo Strip city life that's been very successful to date. (and maybe even considered a bargain in fact!) So maybe they did take buyers away from Spa Lofts.

So what does this all mean? It means the Las Vegas condo market is certainly more interesting, controversial, and unpredictable than anything you'll see on any TV reality or game show.

Christmas Poem Dedicated to the Las Vegas High Rise Condo Marketplace

This is just too good and very creative. I had to share it will you all. From the folks over at the Las Vegas Wealth Group, taken with their permission, here's their rendition of the Night Before Christmas:

Twas the Night before Christmas In Vegas

Twas the night before Christmas all through the housing market,
Not an agent was selling, not one single house!
The media were screaming "Las Vegas is Doom,"
All hoped St. Nick would avoid foreclosure gloom.

When out on the lawn~ there arose Construction clatter,
I sprang from the bed to see implosion was the matter!
All day and all night while we were in slumber
Little elves were a working with steel, glass & lumber!

The moon on the breast of the new-rising Strip
Gave the lustre of mid-day to the housing cycle dip.
When, what to my wondering eyes should appear,
But the closings of thousands recorded next year!!

With a little old driver, so lively and quick,
I knew in a moment it must be St Nick.
More rapid than eagles the Strip skyline changed,
And he whistled, and shouted, and called them by name!

"Now Trump! Now, One Queensridge! Now, Allure and Cosmo!
On, Vdara! ~ Veer Towers... MGM City Center~ You go!
To the top of the Mandarin and Sasson's Harmon!
Fontainebleau and Palazzo... and that's just a few!!!

As dry leaves that before the wild hurricane fly,
When they meet with an obstacle, that's the time to buy!
So up to the high-rise the coursers they flew,
BUT I CAN SLEEP WELL BECAUSE MY CLIENTS ALL KNEW!

And then, in a twinkling, I heard on the roof
The prancing and pawing of each little hoof.
As the media changed stories with their expert advise
Their readers believed~ without thinking twice.

And Santa just smiled, a right jolly smart elf,
And I laughed when I saw him, in spite of myself!
A wink of his eye and a twist of his head,
Soon gave me to know I had nothing to dread.

He sprang to his sleigh, to his team gave a whistle,
And away they all flew like the down of a thistle.
But I heard him exclaim, ‘ere he drove out of sight,
"Happy Christmas to all, and to all a good-night!"

A Night in the Life of a Las Vegas High Rise Condo Blog Author

Last night was a pretty interesting and unique night here in Las Vegas for me. First, I went to a fabulous cocktail party where those in attendance included condo developers, politicians, and corporate executives. Then after that, I took my girlfriend to a lavish upscale cocktail lounge to meet up with a few friends over apple martinis in a quiet romantic setting, followed by an amazing dinner at one of Las Vegas's finest newer restaurants, sipping wine while feasting on lamb chops. The night ended with cappaccino's overlooking the city from a rooftop view on a clear beautiful Vegas night.

Not bad, huh? And you may be thinking every night should be like that on the Las Vegas Strip, right? Well, did I mention that the entire evening happened entirely in Downtown Las Vegas?

The cocktail party was the groundbreaking party for the Verge mid-rise condo project located in Downtown Las Vegas. The lavish cocktail bar was the Downtown Cocktail Room, located (coincidentially) just a stone's throw from the Steamline Tower's sales center. The restaurant we ate at was the Triple George Grill (trust me, you'll love it there!). And we ended up at the top of Binions for coffee overlooking the city from the 24th floor.

Can you believe an evening like that happened in downtown Las Vegas? Not in 5 years from now... not in the near future... not sometime after revitalization is complete... but last night. NOW!

Downtown's happening baby! Get on board with a Las Vegas high rise or midrise condo now while profits are for the taking before everyone else finds out what's going on over here.

Who's The Tallest Las Vegas High Rise Condo of Them All?

Clark County Commissioners and the FAA recently approved plans for The "Crown", slated to become the tallest resort hotel and casino in Las Vegas. "The Crown", to be located at the site of the old Wet N Wild Water Park by the Sahara Hotel directly on the Las Vegas Boulevard Strip, was originally proposed as a $5 billion dollar mega resort hoping to become the tallest building west of the Mississippi at 1,888 feet. However, due to air traffic issues, the approved height was reduced to 1,064, which is slightly smaller than the top of the Stratosphere.

Still, that's a high rise!

Christopher Milam, a Texas-based developer bought the Wet N Wild real estate site fo $475 million and has since partnered with Australian billionnaire and casino owner/operator James Packer to build "The Crown" as a joint venture.

Plans call for meeting space, 3,000 square foot showrooms, retail, room for a 250,000 square foot casino, and 500 hotel rooms with initial development beginnning in about 3 years. Then again, why wait 3 years when there are so many interesting high rise condo options available to you today? Especially since we all know what happened the last time a Australian developer tackled the Las Vegas High Rise Condo world... (The Ivana project, anyone?)

Las Vegas is a Tipping Town, Right?

It seems everyone lives on tips in Las Vegas, from cocktail servers to bartenders, to limo drivers, to parking attendants right down to the guy giving you towels in the bathroom. The list goes on and on. Why not tip real estate agents as well? I'll give you some time to stop laughing at that one. But in all seriousness, I wanted to make you aware of a very interesting website service I uncovered at the BlogWorld Expo called ScratchBack.com.

ScratchBack is an online "tipping" system. It allows blog authors to accept tips and "give back" links or images in return. It works for both bloggers and readers so I added the widget to this blog as you'll see in the left navigation bar called "Are You In My Top Spots?".

In exchange for your contribution, the widget allows you to leave your website url so people viewing this high traffic blog (highly targeted people, I might add) can go directly to your website. And the cost? Just $5.00 per tip. The spots are first come first serve, so when all the spots are taken, the very next contributor goes to the top of the list and knocks whoever's last off. The most recent contributor is always number 1 in the listing. There is no catch, other than the fact I get to approve or disapprove the entry.

It's like a fancy, fun tip jar, except it's better because the tipper actually gets something in return. C'mon... It's Christmas time - show your favorite Las Vegas High Rise Condo blogger some love!

Las Vegas Condo Owners Can Turn Seemingly Bad High Rise News into Good

Some
Projects
Are

Likely
tO
Fail.
Thankfully,
Subscribers of this blog have something to fall back on...

I've just received some disturbing and highly reliable news regarding a Las Vegas condo project - I'm not saying which one - that is facing imminent cancellation.

Forgive me for being blunt here: if you're a unit holder in this soon to be failed project, you need to contact me immediately to turn adversity into opportunity.

Remember, every failed Las Vegas high rise condo project makes YOUR unit more valuable. This is Las Vegas... where only the strong survive.

GOZone30® Program Allows Investors to Take Full Tax Deduction Incentives Before Year 2007 Closes

A bit off-topic perhaps, but if you have a high tax burden and are considering purchasing high rise condos in Las Vegas or elsewhere, this will definitely be of interest. Read the entire press release here >>>

It’s not too late for you qualified investors to take advantage of the GO Zone Act on your 2007 Tax Returns! GOZone30® is a brand new program designed to provide investors with the ability to close a GO Zone related property and take the federal tax incentives associated with the GO Zone Act before the end of the year 2007. GOZone30® allows an investor to purchase a GO Zone qualified property, have it completely furnished, and provides a guarantee that the property will be placed into rental service before the end of '07 thereby meeting a critical requirement for a successful GO Zone investment.

Remember, if you paid taxes over the past five years, GO Zone related investments will allow you to get that money back and turn it into appreciating real estate instead. Still, many investors thought the GO Zone was too good to be true, until they now see their investor friends receiving tax refund checks from the government. Now everyone knows this program is for real, and more and more investors want to get in on this opportunity, but many they feel it's too late to take action for their 2007 return. GOZone30® solves this problem as the entire closing and qualification process can be completed in less than 30 days for those that act now.

In fact, investors need not ever have to visit the property to take advantage of GOZone30®. The entire purchasing process can be completed via email, fax, and internet. Imagine saving money on taxes just for investing in appreciating real estate!

If you do have a high tax burden and thought it would be impossible to close, furnish, and rent a GO Zone qualified property in 30 days, GOZone30® is the product for you. Remember, It's your money - why give it to the government? Use it or lose it. GOZone20® means it's not too late to make 2007 an even better year!

Take advantage of GOZone30® or get more information by visiting the GOZone30 website page and filling out the form at the bottom of the page.