Should I Invest in Las Vegas Real Estate
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Should I Invest in Las Vegas Real Estate


Kris Krohn here with Limitless Wealth TV,
we’re talking about Las Vegas. Is this a market that you should be investing in? Las Vegas lucky city, roll the dice. Is
this the place for you to be in real estate? Well you might as well roll the
dice on it cause I’m telling you, you’re late. Listen, I got out of Vegas in 2013. I
was buying back in 2009 and 10, we were buying homes there for our clients all
around the country for ourselves, I bought some of them myself, we were
buying homes there for $90,000, a $100,000, a $110,000
and I got out of the market in 2014 when our last acquisition
price was a $160,000. Well let’s talk about what’s happened in
just the last few years here. Currently, the median price in Vegas is back up,
it’s $239,000 That’s up 15%
from the year before and that markets been seeing double-digit growth
over each year for the last several years and so next year the projecting
maybe a 6% growth but frankly, we’re at a $151,000 a square
foot on average in that marketplace. Those of you that are looking at Vegas, the
time to be in Vegas was about three, four, five, six years ago, those were the times
when I was there, my buddies were in and we were just having a heyday. Understand
that when the market falls out, the markets like Vegas that saw the greatest
growth are going to have the biggest comeback and they’re going to snap back the
fastest. We saw that in Phoenix when we were there, we certainly saw that in
Vegas but is it really the time to be investing in Vegas anymore? For me it’s
an absolute no answer and let’s talk about why. In 2014, the last year that I
was really transacting real estate there, we only did 17 properties on average and
a $160,000, that was from doing it a few years prior
all the way down to ninety or a hundred thousand dollars. I want you to look at
my exit. My last clients in that market that bought a home for $160,000
have that home probably worth around $240,000
so they’ve probably made sixty, seventy, eighty, ninety thousand dollars. I’m sure
they’re thrilled, they’re happy, that’s why I was there, that’s why we did it but
why wasn’t I there when we could buy homes for $180,000 and 190,000 and $200,000?
Because we’re too close to that rebuild value and there’s other markets that we can go
like Orlando today where I’m still getting homes for $130,000 and $140,000
that still need to go back up to that $240,000,
$220,000 price point so there’s a science to knowing
when to get into the market and when to get out and when you’re buying in the
price range I am you never have to get out because you can always cashflow it.
Cash flowing a property under the median is your safest bet. If you’re over the
median then cash flow can kill you because if you’re negative cash flow and
you’re losing several hundred or thousands of dollars a month, that’s
going to set you back a really long way so Vegas, great place to invest in, it used
to be. What I invest in there right now? Well it all comes down to what I call
opportunity cost. I struggle to understand this principle when I was a
college kid but I really live this principle every day of my life which is,
if I buy a home in Vegas today, what am I passing up? What is the next best
opportunity I could have been in on and what’s the difference? If I buy a house
today in Vegas, let’s say that in that hot market, the average is 240, let’s say
I can get in there a home for 210 and I’m like, sweet, $30,000
of equity, man. I crushed it, I rocked it. I’m missing an opportunity to be in
Orlando for example, also a growth market where I can buy a home for a $140,000
that also needs to go back up to $240,000
and I compare that $30,000 to this $80,000
and one of them is a lot bigger than the other so Vegas had its time but
right now it has reevaluated, it’s recapitulated, it’s got its game back on
which means that for me, I simply have better markets to be in. Check out some
of my other in related videos where I can share with you some of the markets
that are hot right now that I am currently in and friends, that’s the deal
on playing Russian roulette in Vegas. Timing really is everything and
if you’re going to play the market, you need to make sure you play it the right way.
Check out this playlist over here to see the markets that I am currently
investing in right now because I have pulled out of Vegas but I’ve pulled
right into some of the other best markets that exist today. Make sure you
subscribe, ring the bell and we got more coming your way.

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