🗞️ News & Moves 🏠

Vegas just raised the stakes—tallest tower, NBA arena, and a splash of gold and silver glass

LVXP’s Big Bet: Aiming for the tallest resort on the Strip, LVXP’s new project combines a 752-foot-tall hotel-condo complex with an 18,000-seat NBA-ready arena.

Futuristic Flair: The design, by Steelman Partners, flaunts LED-lit gold and silver glass and a curving tower that feels more art than architecture.

What’s In It: Think massive casino, shops, a grand theater for 6,000 people, and every luxury amenity you can dream of. Oh, and they’re prioritizing sustainability.

The Competition: Other contenders for NBA arenas include Oak View Group’s $10B vision and MGM Resorts’ T-Mobile Arena.

Will LVXP come out on top?

This project is a high-stakes play:not just for LVXP but for Vegas itself.

NBA or no NBA, it’s a game-changer for the Strip.

Consumer confidence is climbing, but housing? It's stuck in neutral.

Consumer confidence is climbing, but housing? It's stuck in neutral.

The U.S. consumer confidence index jumped to its highest level in over a year, signaling optimism about jobs and the economy.

Shoppers feel better about their wallets, and for good reason—lower inflation expectations and a stable labor market.

But here’s the twist: despite the confidence boost, new-home sales just hit a two-year low.

Why? Mortgage rates are still sky-high, keeping many buyers sidelined and affordability tight.

🚨 The Fed Pulse 🚨

📉 Gradual Rate Cuts Ahead: The Fed is easing into interest rate reductions, favoring a slower pace due to stubborn inflation and uncertainty around the “neutral rate”—the level where rates neither boost nor slow the economy.

📊 Inflation’s ‘Bumps’: While inflation dipped to 2.1% in September, it could climb to 2.5% by year-end.

Powell calls these fluctuations “bumps” on the path to the Fed’s 2% target by 2026.

💼 Labor Market Stabilized: Earlier fears of rising unemployment have eased, but the Fed stands ready to pause cuts if inflation heats up again.

📅 2025 Outlook Adjusting: Wall Street is now bracing for fewer rate cuts next year, as inflation and economic uncertainties remain in focus.

🌎 Geopolitical Risks: President-elect Trump’s tariffs and immigration policies could stoke inflation, adding pressure to the Fed’s delicate balancing act.

DEEP DIVE

“Hey Saul,

I'm brand new to the game, at small pennies, but this was great for something I can aspire to become involved in.

Rebecca”

This is one of many similar feedbacks I'm getting from you.

Today, I’m going back to 2017.

The project?

A single-family home renovation in Park Ridge, IL.

Why?

No matter where you are in your real estate journey, these are 7 key value-add steps I follow to this day.

Whether you're flipping a single-family home or turning around a 200,000 sq. ft. industrial building, the game doesn’t change.

Only the size of the deal does.

Or, as Elon says, “Physics is the law. Everything else is a suggestion.”

Case Study: 1304 Elliott St, Park Ridge, IL

1. Find Off-Market Deals

Money is made when you buy, not when you sell.

To get the edge, you need off-market deals.

Back then, I ran direct mail campaigns targeting estate attorneys.

One postcard landed me this deal—a house sold at a discount because the estate and attorney didn’t want the hassle of renovations.

Lesson?

Get to sellers before the competition does.

2. Know your numbers

Want to know how much to offer?

Do this:

• After Repair Value (ARV): $380,000

• Renovation Costs: $70,000

• Other Costs (10% for holding, closing, commissions, etc.): $38,000

• Desired Profit: $50,000

Do the math: $380K - $70K - $38K - $50K = $217,000 max offer.

I started at $200K and locked it up for $205,500.

This formula works for houses, strip malls, or skyscrapers.

3. Financing: Bridge Lenders Are Your Best Friends

Bridge loans fund 75-80% of your total project (purchase price plus construction).

For this house, I financed $210,000 and put in $75,000 as a down payment.

For larger projects, you may need investors to fund your downpayment.

But, the basic structure will remain the same.

4. Set the Vision (Before You Touch a Hammer)

You'll regret it 9 times out of 10 if you let your architect or GC decide the vision.

My process begins with a rough 'chicken scratch' sketch of the floor plan and examples of finishes I want to include.

The architect refines it into detailed drawings and renderings.

This helps me share my vision with the GC.

Why?

Because if you can't see what you want, they can't see either, and you won't get what you want.

5. Control Your Budget

Want to blow your budget?

Pay your contractor “time and materials.”

Industry-standard 10% of reno cost plus T&M for change orders is always a disaster.

For this deal, I sourced materials and gave the GC a flat labor bid with a $10,000 fee and a bonus if he stayed on time and within budget.

You need someone in this corner with an owner's mindset, where the compensation is tied to overall profit.

From my experience, sharing profits with GC is better than paying a percentage of the total cost, since the latter means he has no skin in the game.

You need a structure where losing hurts both, but winning benefits both as well.

6. Broker is Your Partner

For this role, you want someone who acts as a principal rather than an agent.

Their compensation should be directly tied to the project's overall success and profits.

Back then, I had a business partner who was a broker, and he handled the marketing and sales of the houses we renovated.

Instead of a commission, he was paid based on profits.

Now, I usually hire a broker for leasing and sales.

They receive a commission and a bonus tied to the improved part of NOI.

This structure ensures they have skin in the game and think like owners.

7. Hire Dream Team for Your Closings

Signed a purchase contract?

That’s round one.

Contract to close; that's where real negotiation starts after challenges arise.

A large percentage of deals die here.

You need a rockstar attorney and a title rep fighting for you and making deals on your behalf.

My secret?

Work with a small firm where you’re a top 1 or 2 client.

Results

1304 Elliott St sold for $387,750 after six months, netting $71,000 in profit.

No fireworks, no gimmicks—just a simple framework that works every time.

Takeaways

1. Whether this is a house or a big commercial project, the fundamentals for value add are the same.

2. You make money when you buy.

3. Build a team of principals (not agents) who are tied to the project's success.