All Forum Posts by: Abraham Pereda

1. A US bank won't lend to a business in Mexico, unless your US LLC has an established business in the US with a strong balance sheet that makes your LLC bankable regardless of the Mexican business.

2. You're basically asking for an unsecured line of credit, which you'd only get if you have an established business with a strong balance sheet in the US (and you already do business with the lender).

Add 1 and 2 and it sounds like mission impossible to me. The problem here is the risk for the lender and such a structure would make their risk even higher.

By the way, these days, interest rates in Mexico aren't that much lower than those in the US. Moreover, assuming that you could get the kind of loan you're talking about in the US, I suspect your interest rate won't be lower than the 10-12% in the US.

Interesting, thanks you Mike. In case your aré interested, I am selling a 12 Unit in Playa del Carmen, 10min from the beach. It Is a fixer, good for rentals.

0 Votes

Quote from @Ryan Ruppert:

That place is awesome. Been there a number of times. Very cool

Let me known when you come, youre welcome to visit. www.fincaselah.com

1 Vote

Quote from @Mike Lambert:

@Dan H., your tagging of me didn't work (I think you can't tag somebody that hasn't commented yet in the thread) but Abraham sent me a DM.

I'm still putting a brief answer here to benefit everybody else. Basically, the financing has to come from the country where the collateral is. So that would be Mexico, unless Abraham can give some collateral in the US or another country and get financing there.

Thank you @Mike Lambert for your answer. I understand this, now Mexico average interest is about 10-12% right now. Do you have any idea if there is a loan product in the US given to an LLC, not necesarily to buy real estate, but maybe capital to invest in your business. What I was thinking was to send the revenue the hotel makes to an LLC in the US, so the LLC has some money flowing in and can qualify for a business loan or open a line of credit. Maybe between 50k to 100k would be nice and that way have a better interest rate than Mexico.

Do you think this is feasible?

0 Votes

Hello I recently bought a resort in Valle de Guadalupe, Mexico, wine country 1 hr drive from San Diego, CA. I had owner finance $3,000,000 dollars, 4% interest rate, 10 year term. The resort is in a 7.7 acre land, has a hotel with 30+ rooms, restaurant, bar, wine cellar, vineyard, cabins, pool, event venue, etc.

I am looking for additional capital to invest in remodeling, where can I get some funding if the property or business is in Mexico?
If I move the business and taxes to the USA through an LLC, would that be a smart move to get funding and better interest rates than Mexico's banks, even though the property is in Mexico?
I am even considering partnering to accelerate growth. I have worked the business for 1.5 years and know the market...

1 Vote

Hello Dan let me know how we can talk

0 Votes

Investment Info:

Large multi-family (5+ units) fix & flip investment in Playa Del Rey.

Purchase price: $100,000
Cash invested: $100,000

Looking business partner or investor for a 12 Unit Investment property in Playa del Carmen, México (near Cancun). Great for long term rentals or Airbnbs.

What made you interested in investing in this type of deal?

Location and AP

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

Private Resources

How did you add value to the deal?

Changed all the plumbing and electrical installations. Fixed everything up.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Local agents from the area

0 Votes

Investment Info:

Large multi-family (5+ units) private money loan investment.

Purchase price: $397,368
Cash invested: $52,000

This is a construction proyect in one of the most expensive areas of Mexicali, Baja Mexico. Its under contract and will be building a 14 unit apartment building. There is still room for more investors. It has a 21% Cash on Cash Return, Its a Ground Lease proyect for 15 years. At the end of the 15 years you would have a total ROI of 324%. This is in a conservative scenario.

What made you interested in investing in this type of deal?

Cashflow!

How did you find this deal and how did you negotiate it?

Im a real estate agent in Mexico, and found it on the MLS. I gave the owner a deal that he couldnt refuse!

How did you finance this deal?

Private Money 100%

How did you add value to the deal?

Made all the proyect all together. Construction proyect, negotiated the rent of the land, and found investors. Still looking for some investment.

What was the outcome?

We are about to start construction

Lessons learned? Challenges?

You can have a way or an excurse, not both.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

myself

0 Votes

Do you know how I can get a loan in the US and use it to build in Mexico?

0 Votes

All Forum Posts by: Abraham Pereda

Abraham Pereda has started 4 posts and replied 8 times.

Post: Buying a Resort in Wine Country, Baja, Mexico

Post: Buying a Resort in Wine Country, Baja, Mexico

Post: Buying a Resort in Wine Country, Baja, Mexico

Post: Buying a Resort in Wine Country, Baja, Mexico

Post: 12 Unit Investment property in Playa del Carmen, México

Post: 12 Unit Investment property in Playa del Carmen, México

Post: Syndication in Mexico

Post: Can I get a loan to build an apartment building in Mexico?