Las Vegas Reflections
IT DOESN’T ALL STAY
What happens in Las Vegas may well stay in Las Vegas. But lessons learned linger for a long time. Hope you find something interesting from my visits to Sin City.
NON TRADED SECURITIES
ADISA is the “Alternative & Direct Investment Securities Association”. I am a prior President of the group (2010 – 2011). If you are active with non-traded securities, you are at the ADISA conference in Las Vegas every year! Broker dealers, registered representatives, RIAs, sponsors, wholesalers, regulators, attorneys, analysts, and service providers gather to learn what is new in the world of alternatives. Confirm that the sponsors you are considering for investment are active in ADISA (so they stay current on the ever-changing landscape of Alts!).
INTERESTING LESSONS
OPPORTUNITY ZONES. The “hot topic” at the conference was Opportunity Zone (“OZ”); the existing version AND a new and improved OZ coming January 1, 2027.
An investor in a development (or business) located in a government designated low-income OZ could result in zero taxes on gain if held for sufficient years…and the OZ investment is successful! I suggest you limit OZ investing to projects where the sponsor already legally controls the site AND has on point development/ business experience. Why? There is no Wizard in OZ, you won’t be given ruby slippers to fly your lost capital back home, and it gets old living with munchkins and wet witches!
QUALITY FROM CONSISTENCY. The 15 piece jazz funk band SANTA FE AND THE FAT CITY HORNS has performed in Las Vegas every Monday night for over 20 years. I got to experience their musical fusion at the Copa Room at the Bootlegger, as guest of Roby Turner, music producer extraordinaire. Their leader, Jerry Lopez, communicates with a subtle nod or grin to band members who are as in sync as any band I have ever experienced. In your real estate investing, look for partners / managers who have similar consistency and continuity. You don’t want them learning the business on your nickel.
DANCE WITH “WHAT BRUNG YOU”. A friend left the top apartment focused 1031 DST sponsor a few years back to strike out on his own. After several years of packaging “shadow anchored shopping center” offerings (which can make great economic sense) he has returned to apartments. I can tell in his voice and body movement that he has returned home. And the reaction from the audience suggests that they are ready willing and able to welcome him to what they have wanted all along. In your real estate investing, you may want to consider what you do best, rather than chase that which may seem most interesting in the moment.
BOTTOM LINE. Even in the bright light of Las Vegas Boulevard, there are lessons available to apply to real estate investing!
All that glitters is not gold…and your money can disappear overnight.
Make up cannot overcome being old and tired; spend money to upgrade.
All good things need not end someday if quality if maintained.