Everything is greatly exaggerated. I've had 3 out of 4 deals cancelled and the one I'm on, there's major issues. This is from the condo Singular Dream (referenced in RETA promo note below) owners chat group:
1. As one of Ronan’s top execs that was retiring said to me when I was complaining about stuff, she said, “Oh Jeff, you’re a smart guy, how stupid can you be to believe the stuff that Ronan puts in those marketing emails.” He gets 10% commission of every unit. He’s making a fortune. Once sold, RETA will refuse to take a call from you.
2. I have seen this kind of “RETA data” from Portugal, Spain, and Playa, where I have condos. From what I have observed, often claims of big appreciation are related to LISTINGS and not SALES, and cashflow claims may be one-off outliers vs averages.
3. RETA Deals Pay Off in Playa del Carmen
I saw a juicy income statement last week for a condo in Playa del Carmen on Mexico’s Riviera Maya....what a lot of crap!!
The statement was for rental income on a one-bed in Singular Dream.
Singular Dream is in the lushest, greenest, and most desirable part of Playa del Carmen, with rooftop pools and views of the Caribbean. It’s a byword for boutique luxury. All the condos RETA members could buy come completely turnkey and ready to rent.
A fellow RETA member of ours bought his condo for $242,813. That was the RETA-only price when I opened that deal in June 2021.
Today I conservatively reckon the condo’s worth around $350,000.
Anyway...
The condo is renting now. And according to the rental manager it did $3,000 a month gross in its first year, which is $36,000 annualised. A 14.8% gross yield.
It’s doing $4,300 a month this year so far but of course that’s been high season.
The rental manager believes that the condo will outperform last year. I’ve no reason to doubt him. (He came to our annual RETA Gathering and he serves a lot of RETA members.)
The ROA fees being charged though are ridiculous and gross margins mean nothing and net leaves little for any such return!
