MichaelSchmichael

Las Vegas Real Estate: Cash Is King

I have to agree with nobull -- if it's smart money, it's leaving a dumb investor. These investors seem to be buying on the basis of dated underlying demographics without taking into account how those demographics were driven by the real estate boom itself (and have since changed). For example, how many of the 5,000 to 6,000 people per month moving to Vegas were moving there because of boom time economics (from jobs as realtors, construction workers, teachers at schools being built to educate the children who were supposed to be living in the oceans of houses being built, industry workers who grew accustomed to equity rich Californians spending free money, etc.). The factors driving the rush to Vegas are gone. People who think they can buy a home in Vegas and rent it to decent tenants are out of their mind -- there are more homes than people, and it is going to be that way for a while.