All Forum Posts by: Account Closed

Originally posted by @Terry Lao:

@Account Closed

Most casinos cannot handle the risk that whales pose, as potential house losing millions can have on bottom line. Only casinos like MGM, Belagio, Cesars, and Wynn can handle their action. Also, whales get flown in, comped $10k a day suites, 24 hour butler service, ect. The terms to gamble are negotiated in advance where they get a high credit limit, and length play time is negotiate with percentage cash back for losses. If whale wins, casino takes maybe $5-10-20 million loss. If whale loses, since it is house credit they are playing with, then may or may not pay back. If payback, then negotiate a percentage discount. 

Overall, not that many high end casinos willing to handle a whale.

I wish I was a whale.

Terry

This is truth.  So far, only the high-end strip casinos and the casinos belonged to the "big" casino corporation can handle it, like Wyn_x's corportion (Wyn_x and Encor_x), Venetia_x's coroporation (Veneit_x and Palaz_x), Caesa_x's coroporation (Caesa_x, Pari_x, Harra_x, Plantet_Holly_x and other casinos belonged to Caesa_x) , Bellegi_x's coroporation (Ari_x, Mandala_x, MGM_x and all other casinos belonged to Bellegi_x) etc. 

On Day one, while a big gambler gamble and lost in Bellegi_x; 

On Day two, if the same big gamler say to the Bellegi_x casino host, I feel lucky and want to gamble in Excalibu_x today, get me a limo to Excalibu_x in 60 minutes.  

Excalibu_x is belonged to the same Bellei_x corportion.  

The casino host cannot refuse the big player request and have to get a limo immediately and get all the arrangement to take the big gambler to Excalibu_x.  

But of course, a big gambler seldomly would choose Excalibu_x.  They may choose MGM or mandala_x instead.  

All whales and big gamblers are gambling and hidden inside the high limit rooms.  Many table game dealers or floor supervisor outside the high limit rooms won't notice them as well.  Only the gamblers or the people who are working inside the high limit rooms would know their existence...

Most big gamblers are not from USA.  Most of them are from overseas...

A lot of gambling money coming in to Las Vegas from overseas...

Las Vegas strip casino high limit room table game reveal...

Las Vegas is the world number one casino gambling and entertainment industry.  

All the gambling whales would travel all different casino in the world.  The Las Vegas strip casinos are the one that the whale would not skip gambling.  

Every day, a typical wealthy gambler (many many of these gamblers in the world come to Las Vegas) would bring $3 million to $5 million bank roll for gambling in casino.  This is like a $500 bankroll an average person bring to a casino.  

Sometimes, there are whales bring $10 millions to $20 millions for just "one session" (one day to one week) to gamble.  

They bet somewhere between $15k to $400k each dealing hand.  

Many strip casino table game marketing host become millions from the tips they got from the whales. 

The $40k average income on the newspaper is the number from IRS.  However, Many many income are tips and cash that they didn't report it on IRS. 

Do not under estimate the average income in Las Vegas. 

In Las Vegas market, All I can say is, I have reviewed 500 plus rental applications with proof of income (pay stubs, bank statements) myself.  

I "love" tenants with occupations such as cocktails, bartendar, steak house waitress, resturants waitress, butlers, table game dealers, floor supervisors in the strip casino!  

I know some people working two table game dealing jobs (80 hours per week) in the strip casino at the same time, making $90k in Ari_x and $100k in Cosmopolit_x, so one person is making $190k per year.  This is truth.  I didn't make it up.  

I feel sad for the workers who are making $9 an hour in walmart, or the workers who are working in low-pay small casino.  

They are performing the same service job.  Those who got low-paid should keep looking for new casino jobs and move-up to get higher pay for themselves for performing the same service job.  

Las Vegas may be the only city in USA that many people without a college degree still get a very good pay $100k job from the strip casinos.  

For me, from past experience and good numbers memory. At the very beginning, when I had no idea how much the job cost, I had 3 people gave me 3 different quotes on the same repair job. After done renovations / repairs / maintenance on many many properties, I kind of know the price range of each job like painting, flooring, drywall, plumbing, electrical, AC, pest control, remove odor from old pet urine, mold remediation, cabinets, countertop, backsplash, appliances etc etc in my mind. When I walk in a house, I can estimate the repair cost myself in 30 minutes using my memory from past done job. If it is something new that I have no experience on, then it will take me more time to get at least 3 different quotes. But after this one-time research on the “new” repair thing, it become another number memory in my mind that I can re-use in the future if similar repairs is needed.

I have many mortgages and rent. I set up auto payment for all mortgages, and have 95% of the tenants deposit rent to my account electronically each month. The other 5% older tenants who don’t know much technology would deposit the rent to my account at a bank teller counter. However, I still verify each transaction online manually on my checking account monthly, but it takes me only a few seconds to verify each mortgage or rent transaction on my computer.

In Vegas, I met and know many people who are working in casino industry. The people who are working in smaller local casino like South_Poin_x are making $50k to $60k. The people who are working in the top casinos like Wyn_x, Ari_x, Bellagi_x, Caesa_x are making $80k to $110k each person. A couple working in any one of the top casinos would have household income of $160k to $220k.

I agree that, Las Vegas housing market will not tumble before summer 2020, that’s why I’m still refinancing and buying more properties now. A market won’t be crash unless it has been super crazy for at least a few years and pass the pre-recession peak price. Usually, the last boom year is the year you can make the most money. Like the last boom year in Las Vegas, the house price went up somewhere between 47% to 53% in one year. I don’t mean it must happen again this cycle, but I would not rule out this possibility. If you look at the Canada news, it is time to dump the houses in Vancouver now, but not USA houses yet. Hong Kong housing market news is even crazier. Hong Kong housing market was super crazy high in 1997 (like USA high year 2005), then it crash 60% in year 2003 (like USA crashed year 2008). Hong Kong housing market has gone up for 15 years since year 2003, still not crash yet, plus the new high today is 173% of the super high in year 1997. Example, in year 1997, the house peak at $1 million dollars, then crashed. Today, year 2018, the house price has passed pre-recession peak price and has reached $1.73 million dollars. USA house price was super crazy in year 2005, but it is “possible” that the next new high can reach 173% of the pre-recession peak price. Las Vegas last peak at $314k. 173% of $314k is $543k. It is “possible” that Las Vegas new median house price reach $543k. LOL

This is a great strategy if you can handle it. Congratulation that your hard work paid off the loan and have a bigger and bigger portfolio! Excellent!

In Las Vegas area, yes, there are handful of Realtor list it for 1% commission. Many 1% ad are on the freeway billboards, newspapers, internet, letters from them etc. From time to time, I receive mailing letters from different Realtor saying they can list my properties for 1%. Those agent stated on their letter that, they like my transaction volume and want to become my agent. I have tried three of them three years ago when I traded my single family houses for other properties. They are all good. I sold all of them smoothly three years ago. Nowadays, in Las Vegas, many sellers pay buyer agent 2.5% commission. We learn it from the listing Realtor. What happened was, at the beginning, the sellers offer 6% to the listing agents, then the listing agent spilt whatever % to the buyer agent. Later on, the sellers found that some listing agents keep 3.5% or 4% commission themselves and give (2.5% or 2%) of the 6% commission to the buyer agent. After the sellers/Investor found out about this “fact” later on, the sellers/investors would think, “oh, the buyer agent is actually willing to accept 2.5% or 2% commission? If this is the case, why do we offer 6% at the beginning? We can just offer 2.5% to list and 2.5% to buyer agent, total of 5%. In Las Vegas, today, most experience sellers offer total of 5% commission, 2.5% to list and buyer agent each. Even much more experience investors (have bought and sold many properties before like me) would use the 1% listing agent with 2.5% commission to buyer agent, total of 3.5% commission. The seller who still pay 3% buyer commission usually are the non-experience seller who sell house maybe once or twice in their life.