This is Why I love Vegas…

Posted on May 16, 2011 | by Denny Oh

Screen shot 2011-05-16 at 2.34.23 PMGenerally speaking, a realtor who sells a $190,000 home, will get paid about 2.5-3% of the sales price – $4750-5700.  After paying for his/her transaction coordinator, office/franchise fees, errors and omissions insurance, getting the client a gift, etc…the agent sees about $2500-5000 (depending on what their split is with their company).  Not a bad paycheck.  However, when someone spends $190,000 at a bar in Las Vegas, the server/host gets 20% of the bill, earning almost $30,000!

Typically, a $30K pay day for me, requires several months of work and my client needs to spend about $1.25M.

Who spends this kind of money at a bar?  I have no idea, but I’m pretty sure want to be friends with them.

This past May 5th, Cinco de Mayo, someone spent $189,375.98 at Tryst nightclub in Las Vegas.  Topping this amazing list included five bottles of Veuve, at $25K a piece.

How much money one must have to spend $190K in one night is beyond me.  For $190K, you could buy a condo at the Hard Rock Hotel and make about 6% ROI, or you could use it s a 20% down payment on a $950K condo!

Here are a few downtown San Diego condos that might, just might, have been a better use of $190K(then again, maybe I’m just jealous and bitter):

1) Metrome 1BR – this 6th floor property is a 735sqft 1 bedroom that over looks the courtyard.  What’s nice about Metrome, is that it’s very affordable.  Listed at $209K, with HOA dues of only $319/mo, this condo makes a lot of sense.  If you were to pay cash and rent it out for $1500/mo, you’d see a 5.8% ROI(this accounts for 1 year of HOA dues and property taxes).  Metrome is located in downtown San Diego’s up and coming East Village and is across the street from the new library that’s being built.

2) Hard Rock Hotel Studio – there are several for sale(contact me for serveral units that are for sale, but are NOT on the MLS) but in my opinion, the best bang for your buck is a King Studio.  The King Studios at the Hard Rock Hotel, generally speaking, net the highest ROI, earning between $20-23K a year.  With an HOA of about $630/mo, owners net about $6-7% ROI.  The best part about the HRH, is that you don’t have to do a thing!  Owners can visit the hotel for free when they want and when they’re not there, they just collect checks!

3) La Vita Townhome – La Vita is unique because it’s townhomes have private garages. Townhome owners still drive into the common underground parking area, but they get to pull into their own private, gated garage.  Currently, there’s a townhome listed that has a FOUR CAR GARAGE! This 3 story townhome is almost 1900 sqft and is highly upgraded.  The current list price is $779,900 and has a low HOA of $547/mo(yes, that’s low – especially for the amount of space this home has).  The other great thing about this home, is that it has a lot of “private” outdoor space.

4) The Grande South – right now, there’s a 1684 sqft 2br+den condo for sale on the 31st floor.  What I like about this condo is not the price(it’s not a steal, but it’s not bad) – rather what I like most, is that it’s available. There is very little inventory right now in downtown San Diego – especially for condos with protected bay views. Also, the 1684 2+Den floor plan has noticeably more closet space than it’s 1625 sqft counterpart.

Conclusion:

Money is meant to be spent.  If you’re looking to spend money, please give me a call.  I’ll make sure you spend it wisely!  Click here to see some of downtown San Diego’s best real estate deals.   And click here to make sure you don’t miss out on any deals!

Contact Denny Oh at 858-243-2092 or [email protected] anytime for expert real estate advise and representation.

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