Those Las Vegas Condotels: Self Fulfilling Prophecy?

Here it comes, the avalanche of lawsuits because owners are claiming that they bought because they were promised one thing and then they delivered another.

Here is what I wrote in November 2006:

Las Vegas Condotels - Sizzle or Fizzle? Losing Bet on Immediate Cash Flow, Placing Your Wager on a Long Term Investment: What Joe Doesn't Know!

Here is what is going on now:

• InBusiness Las Vegas April 18, 2008 issue: Luster Fades for Condo Hotels
• RealEstateJournal.com, April 8, 2008: Condo-Hotel Buyers See Investments Sour
• Las Vegas Review Journal February 10, 2008: Condo-Hotel Project Faces Class Action Lawsuit

Apparently the condotel owners are not seeing the returns they are promised and are trying to do something about it. Just a little trip to the Las Vegas Convention & Visitor Authority's website could have saved a ton of money and heart ache for people who didn't understand that the amount of rooms (%wise) does not add up to the increase in visitor volume (%wise).

A good long term investment, the verdict is still out. An immediate return on your buck, HECK NO! Seriously, you probably would have received a better return buying a regular high rise condo on or near the strip, buy some cheap furniture from Ikea and straight out rent it out yourself.