Last night on our local news i watched an interesting story about how Las Vegas MGM Grand Signature Towers is being sued by Condo owners. This lawsuit has been going on for several months now and it is no surprise that there have been allot of disgruntled buyers of MGM Grand Signature Towers Condos. The lawsuit alleges that the buyers were mislead by sales staff when they purchased their condos and a stipulation in the contract specifically covered MGM in case a sales agent made a promise that held no merit. MGM is now having to have this lawsuit go before a jury to find out whether or not the Condo buyers were in fact mislead into purchasing Condos with in MGM Signature Towers by promises of extremely high financial gains. This is a perfect example of why any High rise Condo buyer must have proper representation before they even consider purchasing any style High rise Condo, whether it be a Vacation home, Primary residence, or Investment like a Condo Hotel. The Condo buyers in the Lawsuit said they had promises made to them by sales representatives that stated they would receive higher nightly rates than what they are now currently receiving by having their condos enrolled in the MGM resort rental program. People have to keep in mind that nobody can make you any type of promise as to what you will receive in the future because no one can control what happens in our daily lives like WAR, economical down turns, tourist trends, and especially future nightly room rates & if they do make you an outrageous promise run and run fast. If you are interested in buying a High rise Condo for what ever reason i can guarantee you only 1 thing and that is you need to be represented by a professional who understands what your needs are and has your best interest before anything. The disgruntled Condo buyers that have this on going lawsuit with MGM must not have had proper representation because it was said that they purchased their condos form any were between $600K-$800K and were promised nightly rates to be $300 + per night. Now with that said lets do some simple math to figure out if this would have even been a halfway decent investment, lets say they got extremely lucky
and their condo was rented out every night for $300 which would equal $9000. The average cut for a condo hotel is 60-40, 60% going to the owner and 40% going to the resort, this is not to bad because you would be left with $5400, but this would mean your condo was rented out every single day of the month which is highly unlikely. Lets cut the number of days your condo was rented by half which would mean that it was only rented for 15 days out of the month. This would total $4500 and now subtract the 40% and it would leave you with $2700 and i don't think that their mortgages were any were close to that with purchase prices of $600K-$800K do you? Like i stated earlier in this post it is a MUST you have proper representation when purchasing a High rise Condo for what ever the reason.
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