Dipping back into 2014, Bellagio is a great study of what’s possible when you bring patience to your development game. I looked at Bellagio in 2013 and although I saw the tremendous potential, I passed on it. With a price-tag north of $10 million, I already had a couple of similar projects rolling nearby. I always keep a mix of project type so this take-down would have been “too much of a good thing”. (We can talk more later about the one time I did not honor this rule and I got smacked back into reality.) Six months later, the Brits from Million Dollar Listing brought the property back to my attention and the price tag was more negotiable. Having sold one of my other nearby projects, the timing worked. I bought Bellagio, which overlooks the Bel Air Country Club Golf Course and has drop-dead, ridiculous views from downtown L.A. to the ocean – crazy beautiful.
Here’s the take-away. I wanted to buy Bellagio in 2013 – it was one of the BEST development opportunities on the market. But buying Bellagio would have set my portfolio out-of-whack and out-of-balance. So I passed and the project came back to me (with better terms than would have been available in 2013).
LANDSHARK TIP: Timing is key. No matter how much you love a deal, don’t stretch yourself so far financially that your life becomes a pressure cooker of sleepless nights.
Here is the story of Bellagio — most of it’s true….