New member from Mexico

[Juan Pablo Gonzalez]

Hello fellow investors.

Just joined yesterday to the community, looking to learn about real estate in the US and Mexico. 

We as a family group,  have some commercial investments as passive income in different upscale regions in Mexico, and we are looking for more opportunities!

Looking forward to this

[Mike Lambert]

@Chris Potter Through relationships with selected Mexican developers, I access to purchase pre-construction condos or villas at big discounts to their market value and launch price before the official launch (and get to choose among the best properties). For example, the last one was in Tulum (Mexico) where I was offered penthouses for $220,000! Normally the bulk of the appreciation takes place during construction but, in this case, the project officially launched to the retail market at the beginning of the year and these penthouses sold out at $ 369,000, which represents a capital appreciation of 68% in around 3 months before the construction has even started. Moreover, there is leverage since the payment of the first half of the price is spread over the construction period. So, between the private pre-launch I got access to and the launch, the investment was the 20% downpayment ($44,000) + 3 monthly payments of $485 each or $45,455 in total. Therefore, the capital gain of $149,000 represented a more than 225% in around 3 months for those who sold at the launch! I prefer to hold for high rental income and further capital appreciation, especially since the developer typically offers me 5-year financing at only 6% for the remaining 50% normally due at delivery. The debt service will be paid by the renters and therefore I hold the property completely free and clear after 5 years and enjoy very large rental returns. I recently did a deal like this 50/50 with an investor friend of mine in Playa del Carmen. I didn't put any money down as my part will be financed by the developer He's putting down the money but that represents less than half of the total price and so he makes better returns this way than if he was buying the property by himself.

I am currently negotiating the purchase of an off-market recently built condo building in a prime location in the Riviera Maya for at a half to a third off the price per sq. ft. of new construction ion the neighbourhood and the gross unleveraged return could easily exceed 20% and even lean towards 40%! I would get leverage through 100% seller financing. I could do the deal alone If a small down payment is agreed. Otherwise I will look for investors.

All desirable property in Mexico will be sold in USD but as I've just shown you can still make loads of money, even though it's not easy (you have to have the right connections and ideas). The only way to make even more money by taking advantage of the low peso is to team up with developers. I have friends who are local developers. They would love if I could bring them some capital but most investors will consider that as too risky!