What A Night In Las Vegas Can Teach You About Real Estate
By JD Esajian on August 4, 2015
What can a night in fabulous Las Vegas, NV teach real estate professionals and aspiring investors about the market?
If you haven’t had the opportunity to visit Las Vegas, it might be worth your time to plan a trip. Treat yourself or someone special to a night, weekend, or week away in this Nevada city. You’ll learn a lot about real estate, and the current property market. In Vegas, everything is magnified, but it is also really the perfect example of the national market. Moreover, it comes with very insightful business lessons. What should you expect to find, and take away from a trip to Las Vegas?
The Power of Marketing
Of all the major cities that are marketed as beautiful havens, Vegas isn’t literally paved with gold. At least maybe with the exception of the local Trump Tower. There are many magnificent works of architecture and real estate, but there are also some extremely run down looking hotels, even on the main strip. It’s not all high fashion, fancy dress, and luxury either. There is a lot of walking going on. A least if you want to move faster than the traffic that is at a standstill. Sometimes pedestrian traffic is so congested it is at a standstill too. People waking the street, and even in some casinos, look as though they might have just walked off the beach in their flip flops.
Go a few blocks at the end of the strip, or a block behind the strip, and you’ll find the glitz and glamor fades pretty quickly. So location is important, but marketing and positioning is even more powerful when it comes to promoting and selling real estate. Vegas is amazing, but the mental real estate it owns may be even more valuable and appealing than the real thing in some cases.
The Value of Experience
If you’ve ever been to a show in Vegas or have visited the amusement park on top of the Stratosphere hotel, you’ll also notice just how much people are willing to spend on experiences. In fact, Las Vegas hotels may make more from the add-on experiences than room rates. While experiences can cost money, they also don’t necessarily have to add debt or overhead in order to add more value, or revenues. Theater tickets, spa services, concierge services, access to fitness facilities, and other entertainment can all be used by all types of real estate investors and professionals to enhance the value of their offerings and properties.
Real Estate is Still Your Best ‘Bet’
Like playing the lottery, gambling on Vegas slot machines is rarely a great investment. Sure there are winners, but they are few and far between. While some might consider that investing in real estate may be risky, or think that the big players out there are great risk takers, this is far less accurate than reality. Some do speculate on real estate. Some do take wild risks. However, the real winners are often those taking the least risk. In fact, if you know your facts and invest wisely, real estate can be less risky than other investments.
Lots of Undervalued Real Estate Deals to Choose From
With all the fanfare, media attention, and lavish hotels, you’d think Las Vegas was one of the most expensive places in the USA to buy a home. Take a quick look at properties for sale and you might be blown away by how inexpensive they really are.
Cheap Real Estate Isn’t Always a Deal
Outside of San Francisco, Las Vegas might be known for having some of the most expensive hotels on the planet. Many might find it odd to discover dirt cheap Vegas hotel room deals online. Of course, like in San Francisco, those deals can quickly turn out to be far more expensive. Add on valet, tipping the help, internet for each person, the mini bar, and the occasional up-charge for breathing, and you might find you end up paying far more. In contrast, there may be two star hotels that are a little less famous, but are in spectacular locations, and essentially offer all of the same amenities with no extra charges. Being willing to pay a little more in order to get what they are promised can go a long way.
Summary
Of course, one of the biggest takeaways from a trip to Vegas is just how much money is out there, and how willing people are to blow it. Some might also wonder why Vegas gets so much more attention than places like Miami or San Diego. Truth be told, there are investing opportunities no matter where you go.