Creative financing for real estate investments in Mexico
Hi, I am a small investor in mexican real estate. I see there is very useful information in Bigger Pockets about hard money lenders and crowdfunding portals for Real Estate projects in the US & Canada. However, there is a void about the other next door neighbor, Mexico. With Federal Bank interest rates at 7%, mortgage rates at 12%, business loans at 20% and personal loans at 38-50% and inflation just below 3%, it presents an amazing potential for US funders.
I know there is greater country-risk but the spread between US-Mexico interest rates is huge, that's why Mexican bank branches of multinational banks are within the most profitable in the world. Some RE markets are driven by American expats in the coasts and the border (Baja California, Puerto Vallarta, Manzanillo, Mérida, Cancun) and Lake Chapala, San Miguel de Allende and other hotspots for US baby boomers retiring in Mexico, and Mexican-Americans moving to México, all prices traded in US dollars.
The economy of some Mexican States is booming and the real estate prices are ridiculously low with high potential for appreciation. E.g. I have house flip and house split projects that could easily duplicate a $50k USD investment in one year. I could start with those aimed to be sold to American expats.
Banks here only loan based on your personal income and they don't issue buy to let mortgages. I need private lenders or crowdfunding, but the few options in Mexico are geared towards new developments of large luxury apartment complexes.
Any ideas on where can I find US hard money lenders for about 15%-20% short term loans $50k-150k Usd secured by property in Mexico?
It would be great to start a Mexico investment group in Bigger Pockets if there isn't one. The potential for profit here is huge!
Thanks a lot
Pablo