Legals mate,Goes into company operating account and not title company.So in a way it isn't a "Deposit".Plus, would never hold onto it and would always refund as we aren't in the biz of "stealing" deposits per se.It's just a sign of good faith that an investor is willing to put their money where their mouth is and the verbiage also specifies this clearly.If they trust us and are going to purchase a turnkey property from us for $80,000 in cash for example, then there should be no hesitance in paying a $5,000 refundable deposit either.Who bulks at this, isn't serious and hasn't done enough research on our market, company and operation so it's a "no fit".Introduced this a while ago as a protection method to not waste time on calls, deal presentation, company resources, etc... only for someone to go MIA and steal all the inside knowledge they gained from us.

Have you had any issues with the city regulations regarding STRs using this method? 

The downside of buying cheap houses is the lack of appreciation they have and having to pay for the same cap ex issues over 10-15 years.

Instead of a simple transaction, you decide to shield yourself with a complex legal structure.

As we know there is build time from when permit is issued and build time including the time it takes to get your drawings ready and get building permits. 

I thought about STRs but I am on a work visa so I cannot legally manage my own property (grey area).

We've contacted the neighbor and he's agreed to draw up an easement to resolve the issue.

Will permits or zoning be a major issue and etc.

I’ve been trying to solve this puzzle for a while too and the issue I keep running into is more so not being able to claim Short Term Rental income until a year or two later.

There are 100’s of PM’s in the Tulum area but probably less than 3% of them are trust worthy, registered and legal to operate such a company.