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Updated over 1 year ago,

Account Closed
2
Votes |
13
Posts

Real Estate Investing in Mexico - Best way to get loans/financing?

Account Closed
Posted

Hi guys, I asked this question on general investing forum but think this is more suited to my specific query.

RE: I am a Canadian citizen with permanent residence in Mexico.

I've been investing in real estate in the state of Yucatan (the safest state in Mexico) for the last 1.5 years and have learned alot.. so far I've invested exclusively in presales and a land purchase, one property was an oceanside condo that will be delivered in June, it's currently up around 35% in value (great!), the 2nd was a private 3bdr family home in a gated community that just broke even (merp), and the 3rd is a piece of land that has increased 400% in value since a public announcement that a busy tourist train will be built along the highway 4km away from the property (nice!).

Currently the large part of my liquidity is locked up in the oceanside condo, and the property I am keeping with the intention of developing into a 150-unit community once the train gets built. I have found a great opportunity to purchase about an acre of land strategically placed on a main road in a beach town called Progreso that is exploding in popularity among Canadian, USA and European expats. As a Canadian in Mexico it's proving hard to get loans from either Canadian or Mexican traditional lenders, and since the oceanside condo is a presale and the title isn't in my name yet its difficult to use that as collateral for a loan or financing, any advice on securing loans/financing through non-traditional sources is greatly appreciated!!

For reference, land in the area I'm considering purchasing increases roughly 17% yearly without touching a brick, the land I want to purchase is roughly $80k USD. My plan is to use income from my Scooter Rental company here to build a café and rental units as the ROI for both business models is high and in 3-5 years planning to sell the land with businesses attached.

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