Newbie Flipper living in Tulum Mexico

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Newbie Flipper living in Tulum Mexico

Fernando Duque
Santa Monica, CA · Member since 2018 · 9 posts · 4 votes

Hi all!

I recently moved to Tulum, Mexico and I am interested in exploring the house flipping market in this town, which has shown tremendous growth in the past few years.

I have experience as a short term rental vacation property manager in Boston, MA where I got my MBA. I have successfully leased over 25 apartment units and I have given great returns to my investors.

Regulations have been tightening up all across the US in the short term rental business which has affected my company. Now, we are looking for new opportunities outside of the US, as mentioned before, in Tulum, Mexico.

I want to take it one step further and start owning our properties. I think flipping is a good way to start and take our business to the next level.

I found the BP podcast and I am a regular listener, and I think I can learn a lot from all of you!

I would like to know if anyone has any experience flipping houses in the Mexican market.

Thank you all!

Fernando Duque

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Mike LambertPro Member
Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
7y

@Nicholas Simeone I'm sorry for your friends. Investing in real estate in the Riviera Maya is one of the best investment you can make at the moment and it must be frustrating to them that they haven't been able to get in yet while prices keep rising. Buying in Mexico is actually pretty straightforward if you know the right people. I'm buying multiple properties in Playa del Carmen and Tulum with investors and I've never had any problems. My situation is a bit different though because we buy pre-construction condos from the developers at a big discount to the launch prices and we get financing from the developer at a great rate. Only a few people like me have access to this kind of deals, which is why I investors are investing with me. However, even if, like most investors, you don't have access to those deals, I still think it's better to invest in pre-construction properties and pay full price than buying existing properties, especially in the Riviera Maya. BiggerPockets is all about helping and supporting each other so I'm happy to help your friends. So, feel free to contact me or have them contact me.

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  • Michael S.Pro Member
    Biggerpockets Support · Las Pinas, Metro Manila · Member since 2015 · 7k+ posts · 1k+ votes
    8y

    Welcome to BP Fernando. Great to have you. 

    BiggerPockets
    0Reply
  • Garrett Blumenshine
    Flipper/Rehabber · Bacliff, TX · Member since 2018 · 8 posts · 0 votes
    8y
    Awesome wish I had some advice for you, but I’m new to real estate an learning all I can. Interested in hearing how things go for you as traveling is so amazing an always wanted to learn what goes into owning property somewhere outside the USA. Good luck in ur endeavors!
    0Reply
  • Patrick Sullivan
    Rental Property Investor · Member since 2019 · 12 posts · 8 votes
    7y

    Hi Fernando.

    I am new to the BP site and am primarily interested in finding good real estate investment options in Tulum or Playa del carmen.  I'm interested to know how your house flipping has been going or any other insights you have on investing in Tulum.

    0Reply
  • Mike LambertPro Member
    Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
    7y

    Hi Fernando,

    Great decision moving to beautiful Tulum! How's the flipping going? I'm curious since I wonder how you could possibly flip in Tulum. There are two markets: the market for locals and the market for foreigners and wealthy Mexicans. In the second one, people buy brand new and you can't buy in the local market to flip in the foreigners' market the type of properties is totally different. The only thing that could work is to buy something in the local market for the land, tear it down and rebuild for the foreign market but then you're a developer. Also, it doesn't make sense to do that in Tulum because you most likely would be in the wrong area and you could just buy land. Finally, Tulum is mostly a condo market. There are villas but nice villas cost a lot of money and most likely don't need renovation.

    Flipping in Mexico would make sense in colonial cities. You'd buy an old house that needs renovation, you'd renovate it and/or resell to a foreigner or rent short term if the city has enough tourism. Or you buy a house in the downtown of such city when there is no land available, tear the house down and build something new to sell into the foreigners' market.

    0Reply
  • Nicholas Simeone
    Rental Property Investor · Salt Lake City, UT · Member since 2019 · 23 posts · 8 votes
    7y

    I have a lot of friends that are looking to buy in Tulum, PDC, and Playa Morales.  My biggest piece of advice would be patience.  Selling and buying property is not very straightforward in Mexico.  The title process is confusing and seems criminal from my Candian friends experience.  He got flustered and went back to Canada after 10 deals fell through for various reasons.  Such as, seller changed their mind on price.  Title documents had a 30 year old picture to identify seller so unsure if the purchase is legal.  Listing price from agent were wrong by over 100,000 MXN the editing process is kind of non-existent on listings.

    The trips in the jungle to find places is really cool though!  

    0Reply
  • Sergio Guzman
    Investor · Denver, CO · Member since 2012 · 15 posts · 4 votes
    7y

    Fernando,

    I own land in Tulum and built a vacation house that I rent through Airbnb. I’ve seen the market very close for the last 7 years. It’s nothing but exciting. 

    I only seen deals in Tulum that could be scrapped off and built something bigger but never thought about flipping. 

    Mexican real estate it’s definitely different than the US, but would be interesting for you to find an opportunity on that niche. 

    Good luck and keep us informed. 

    Bienvenido!

    0Reply
  • Mike LambertPro Member
    Investor · The Americas and Europe · Member since 2016 · 1k+ posts · 1k+ votes
    7y

    @Nicholas Simeone I'm sorry for your friends. Investing in real estate in the Riviera Maya is one of the best investment you can make at the moment and it must be frustrating to them that they haven't been able to get in yet while prices keep rising. Buying in Mexico is actually pretty straightforward if you know the right people. I'm buying multiple properties in Playa del Carmen and Tulum with investors and I've never had any problems. My situation is a bit different though because we buy pre-construction condos from the developers at a big discount to the launch prices and we get financing from the developer at a great rate. Only a few people like me have access to this kind of deals, which is why I investors are investing with me. However, even if, like most investors, you don't have access to those deals, I still think it's better to invest in pre-construction properties and pay full price than buying existing properties, especially in the Riviera Maya. BiggerPockets is all about helping and supporting each other so I'm happy to help your friends. So, feel free to contact me or have them contact me.

    1Reply
  • Nicholas Simeone
    Rental Property Investor · Salt Lake City, UT · Member since 2019 · 23 posts · 8 votes
    7y

    Nice!  I will let them know if they are still interested.  I know four of them are in Playa now.  They were definitely not looking at the options you provided!

    0Reply
  • Daniel Siapin
    Investor · Brea, CA · Member since 2015 · 64 posts · 11 votes
    7y

    Watch out for fideicomisos, and do it right. There are apparently ways to do it so that you own the property, and not just have a 99 year lease.

    I own 20+ properties in Hidalgo, so it seems like a different country even from there. There's no tourism and no foreign money. It's all cotton and big ag business.

    Happy to tag along!

    0Reply
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