Investing in Mexico?

[Erin Hamilton]

I've been to Cabo San Lucas and San Jose de Cabo twice in the last 6 months. I absolutely love it! Has anyone invested in vacation rental condos? They are quite affordable. I'm wondering if anyone has experience with this (good or bad)

[Tina Chen]

Yes I know someone who did. What’s your specific question?

[Johan Yang]

Hello, 

I am interested in buying an investment property in PDC. @Erin Hamilton did you finally buy any property in Cabo, Mexico?

Is there any tips you could share? I went to PDC last week for 5 days and staying on 5th Ave and 30th St (tourist area). I walked around the area. I like it there and feel safe.

I saw so many new constructions and saw many brochures about PRESALE condo. I have spoken to a few RE agents when I was there and am thinking to buy the presale condo unit. But, I am a little worried about getting scammed and being a foreigner buyer. The RE agents told me to put down a small amount of money ($1K - $5K) to hold a spot of the unit I wanted. But, I did not want to do that. 

Should I hire a lawyer before doing that (paying $5K to hold the unit)?

Do I need to find a RE lawyer who lives in PDC?

Do you know any great RE lawyers to recommend who has experience with American buying properties in Mexico?

Thanks so much as always any tips is very appreciated.

Johan

[Mike Lambert]

@Johan Yang

You are right. The area you mentioned is the best in Playa del Carmen because it is close to everything but it is still quiet.

I've been buying several pre-construction condos in Mexico and in the Riviera Maya and Playa del Carmen in particular using the way you described. I was also afraid of being scammed but not in this case because I knew people working for the developer personally, otherwise I wouldn't have done it. Also, I bought in Playa del Carmen in the area where you were because the development is unique and it was the last piece of land available in that area where you were. It's highly likely that you saw the development when you were there.

Through my connections, I got a killer private deal in terms of price and conditions and so I bought some extra condos that I'd be willing to sell. I know the project has sold very well so I don't know if the developer has anything remaining at a decent price but I'd be happy to sell you one of my available condos and spare the real estate agent commission. Given the deal I got, I could give you a much better price and better conditions than you'd get from the developer or any other developer in Playa Del Carmen. Basically, you could get a pre-construction price without the pre-construction risk. While the developer is the biggest in the area and has a great reputation, you can see for yourself that the construction is very well advanced so you don't have the risk of paying something you won't get.

I'll send you a PM but I'm extremely busy at the moment so feel free to send me a PM as well in case I forget.

As you know, BiggerPockets is first about helping each other before doing business. So feel free to reach out irrespective of any interest you might have in my properties. I can share my experience with you and I can definitely recommend you to a good and trustworthy lawyer, which is an absolute necessity in Mexico.

Mike