Structuring Syndication Vacation Rental in Riviera Maya Mexico

[Eli Koren]

Hello Guys,

I am new to the Forum. Found the forum while looking for information about Syndication as a tool to recruit Investment.

I am based in the US and Mexico and currently just completed a mixed Vacation Rental Boutique building project in Tulum, Riviera Maya, Mexico.

Looking forward to develop additional projects in the area which is blessed with high volume of local and foreign visitors. I would like to expend by utilizing investments in my projects and am wondering if sponsering syndications is the way to go and if so how to structure the offering. Construction loans are available in Mexico but its a complicated and very expensive process.

As a developer, I find and buy the land, plan and obtain all the permits, recruit a general contractor, market and sell the condos to investors who either use them for part time living or list them on AirBanB. 

This is an establish market in an area which is number one destination for North American tourists. Therefor many US, Canadians and Europeans buy properties in the area. Normally (prior to the Corona age) the annual expected return was over 10% (net) and the average appreciation around 6% annually.

Taking into consideration that the time to complete a project is between 1-3 years (depends on the size) and my strategy at the moment is to develop the project and to cash out, I am not sure that offering a preferred investment is possible unless I am using my own capital to finance interest distribution.

Actually, I am exploring 1. The right structure for an offering that will serve my capital needs but also will be attractive in the eyes of investors 2. The legal requirements considering the fact that the project is overseas and the Sponsor can be either US citizen  or  foreigner 3. What are the effective methods to distribute such an offering and actually to obtain an equity.

I will highly appreciate any input especially from members who are experienced with foreign Syndication or Crowed Funding.