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The Tulum Vibe

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Interested in a turnkey investment with 10%+ returns?
Let me and my team just do it for you, learn more.
vector image of nick
Interested in a turnkey investment with 10%+ returns?
Let me and my team just do it for you, learn more.

The Ultimate Guide To Buying Short Term Rental Property In Mexico

The Ultimate Guide To Buying Short-Term Rental Property In Mexico For An Airbnb Business

Everything You Need To Know To Invest in Airbnb As A Foreigner

This guide is going to teach you the best way to learn how to invest in Airbnb short-term rentals and what it’s like to buy property – specifically in Tulum, Mexico.

Tulum is one of the hottest Airbnb markets in the world with the some of best returns cash on cash — and I’ll show you why with specific data throughout this Airbnb investment guide I built.

Foreigners, including Americans, are allowed to own and buy property in Mexico through a vehicle called a Fideicomiso — which is basically a bank trust. This article is going to specifically help you learn about buying property in Mexico and owning your own Airbnb business based on data and experience from one of the best in the industry.

I will be transcribing a video from our YouTube channel to help you learn exactly how to invest in Mexico with an interview from one of the most well-known property developers, in Mexico — specifically Tulum, Mexico — Tony Martinez.

My name is Nick D’Urso and my goal is to help you find the right Airbnb investment strategy and analysis to learn exactly how you can invest or build your own property here in Mexico — and hopefully educate you on how a luxury Airbnb in Tulum can generate you a lot of money.

The video above is a great overview of full details on some of the most common questions asked when it comes to investing in Mexico for Airbnb properties — whether it is constructing your own, or buying a unit.

I personally am an investor myself here with my own Airbnb. This article is written to help people find the correct information straight from the source — one of the best property developers in the Yucatan Peninsula.

I remember when I was looking to invest in Mexico, I could not find a person I trusted to really help and guide me. It was a blessing from God that I met Tony and what we have built together in the past year and a half.

We built an investment YouTube Channel to help other investors like yourself do the same when it comes to finding luxury developments in Mexico and other projects we have.

To learn more about us — you can watch a documentary we made here to learn who we are and why we have such a huge passion to meet someone like yourself.

I wrote and transcribed this Airbnb investment strategy/guide the way I would speak to make it easy to read and follow. If watching the video or listening to it while you drive like a podcast is easier — by all means, go for it!

I spent 2.5 years creating an online training - ONLY for serious investors who...

My hope is to educate you with data and knowledge of why Airbnb is still a good investment.

First, I’m gonna introduce Tony.

He’s gonna talk to you about his experience down here in the Caribbean, living here for 18 years, developing properties — how he got into real estate and what makes a rental property successful in Tulum, Mexico.

We’re gonna talk about the audience of Tulum — what the market of Tulum is like from a short-term rental perspective and what the guests are looking for and want, how it’s different than any other Airbnb location around the world, and how you can do it just like myself and many other investors we have helped all over the world.

If you’ve been following this channel for a while, you know, I have my own Airbnb property here in Tulum — (you can check it out here)- obviously, that I purchased from Tony as an investor.


I also have a few other properties in Brooklyn New York and Salt Lake City, and the clientele is very different there than in Tulum as an Airbnb investor.

In the same way that if you have rental properties, Tulum is going to be very different and that is why I have spent a lot of my time building this channel with Tony to get you acquainted and provide the right information on investing in Tulum and Airbnb properties here.

We’re gonna talk about what to watch out for when investing in Tulum and a lot more. So this video is gonna have some golden nuggets for you when it comes to luxury Airbnb profits and returns through short-term rentals in Mexico.

We’re gonna share actual Airbnb results — and you can also see a video here that we released with detailed Airbnb results in Tulum on some of our units. Most people won’t share performance numbers.

We’re gonna share some screenshots to show you exactly how much you can expect to make with an Airbnb in Tulum, Mexico, and maps to explain everything in detail. If you never have been to Tulum, I made a nice video with an active map of driving through Tulum so you can see what it looks like here.

I can share my Airbnb results here in Tulum as well. For some reason, it won’t let me separate the different locations in this graph from Tulum and Brooklyn — so these numbers are for both locations combined.

We’ll take a look at the actual view of the properties, look at Tulum Airbnb analytics and statistics on Airbnb, and then what it’s like working with real estate agents.

The actual Airbnb data from a Tulum short term rentala
Full Year Return In Tulum Short-Term Rental
Airbnb dashboard screenshot for 2022

If you found this video, you probably have done a lot of research on Airbnb in Mexico and what it is like to own a property in Mexico. You’ve probably been reaching out to a lot of real estate agents and brokers in Tulum or maybe just starting your research.

I’m here to tell you that Tony and myself operate very differently. We’ll explain what you need to watch out for when it comes to looking for short-term rental properties in Mexico and working with an agency and why.

So, Tony, why don’t you go over what you’re excited to talk about today and your experience here in Tulum, and go ahead and introduce yourself?


Who Is Tony Martinez: 03:24

Tulum Developer — Tony Martinez

Tony Martinez

Awesome. Well, thanks for putting together one of the best guides to investing in an Airbnb in Mexico, Nick.

I think it’s great, you know, because there’s a lot of information out there, and sometimes it can be overwhelming. As well as, you know, being able to trust the right people when it comes to choosing an agency to work with as well as a developer, you know?

Sometimes we focus too much on the images that were being shown, but a lot of times we don’t know the developer. We don’t know what they’ve built before.

So I think this is a great conversation because I’m just gonna give you guys, you know, my feedback as a developer here in Tulum.

I’ll talk about what to look for in an Airbnb in Mexico if you are gonna invest and why — from a developer’s perspective.

I think the main idea, for this article and conversation, is just to give everyone a different perspective when looking to invest in an Airbnb property in Mexico.

It’s important to be transparent about Airbnb results in Mexico and here in Tulum— because when people talk quickly and mention their results, it’s not always what it may seem.

We know that those results are not always happening the way that everyone says they are.

So today we’re gonna share some of our results.

I’m gonna share some of my properties — Nick’s property as well. We want to help you in your decision for finding the right strategy for buying the best property for Airbnb in Mexico.

And we’ll talk about, if you are gonna get into the rental market, what makes a good successful rental property especially on Airbnb in Mexico — specifically Tulum. Why is Tulum considered one of the best short-term rental markets? Because just because Tulum is booming, doesn’t necessarily mean that your property particularly will do well.

I’ll talk a little bit about, you know, how I got started investing here in Tulum and how you can get started investing in Mexico and here as well.

Here’s a funny story — but I was actually born in Mexico, grew up in Los Angeles, and then at the age of 18, I came back to Mexico with my brother — Jesse.

My brother and I then started working in the sales industry, which has always been my passion.

Sales is my background.

And then over time, thanks to some of the success that I had in the sales industry — I eventually began consulting in the real estate arena. Today I have a fairly large conference that I do here every year called the Fearless Sales and Entrepreneurship Seminar.

You guys are welcome to come to our next one!

It’s in Cancun now. It happens every year in Cabo San Lucas and as well as Puerta Vallarta once a year. So you guys can maybe catch it if you guys come. And we talk about the sales industry, we talk about the market, we talk about marketing, more Airbnb and development as well crypto.

Today, one of the things that I do that I enjoy the most is consulting other developers that are building here in Riviera Maya for the first time.


Grupo R4 Background and Tony’s Mentor — 04:17

Throughout my process of growth in the sales industry, eventually, I began consulting real estate companies and I actually met the owner of, well, he’s the largest land developer in all of the Yucatan Peninsula — Rodolfo Rosas.

He owns a large group called Group R4.

He pulled me in, and said, Tony, I want you to consult us — so I did, and we had a lot of success. And then eventually he and his partner welcomed me into the company — as the sales director.

I became the director of the company for about three years with one condition. And that was that I would teach them everything I knew about real estate sales, and they would teach me everything they knew about development.

And now, today, Rodolfo has become a mentor of mine. You know, everything I learned about development, I learned it from him.

And thanks to, you know, that experience, now I get the opportunity to coach and, consult other developers because Tulum is brand new and in the early stages of growth.

You’re having a lot of developers from Mexico City, Monterey, the United States, Canada, and Europe coming in, wanting to be part of the growth, but they don’t know, you know, the market of Tulum or Mexico Airbnb business.

We’re familiar with Airbnb and real estate market studies, and one of the things that our company does, and we rely heavily on is market studies.

So before we launch any development, we do a market study to find out, you know, who’s the client or who’s the client that we wanna reach to, and what’s important to them as the Airbnb investor or a guest.

If it’s ROI, then what’s gonna give them — a high ROI? And, you know, we have to keep that in mind for all of our clients. When investing in an Airbnb business, it comes down to beautiful design, great views, certain amenities, and certain services. Of course, the Airbnb strategy and analytics are important and so forth.

So whenever we design a product, we’re always designing for the end user — the Airbnb guest, not the investor.

The end user in this case is the renter, not the investor. So maybe you’re interested in investing, and sometimes we can get emotional about what we buy, but you need to remember that you’re not the client, the client is your client, which in this case is the renter.

So we’re always thinking about the renter in this case because what we build today is all done for the Airbnb rental market mainly.


 

My Personal Experience Purchasing In Tulum — 06:30

The Tulum Vibe Penthouse

Balcony pool view from my penthouse in Aldea Zama

Let’s, talk about that for a second, because when I (Nick) purchased my property from you in Aguasanta Vibe I was looking at a bunch of different places and doing my own due diligence and research in the Riviera Maya area.

I actually was looking for the best type of property for Airbnb in Mexico since I already had the other one in Brooklyn. I wanted to learn how to make a high ROI from an international property and have someone manage it for me.

I know a lot of investors that we have spoken to that we’ve worked with have come down here, and just like me, they have found other properties that are super cool.

When I (Nick) was searching for a property to purchase in Tulum, I found one that was different because it wasn’t like the Tulum type, you know that boho-chic, Tulum-type look. It was more of like a Spanish style, though.

And so, a little bit about me, how I and Tony met actually about a year ago now, was I was living in Cancun, and I have the property in New York, and I wanted to buy another spot.

I met Tony through a friend, and obviously, I didn’t know him at the time, so I was looking at other places to invest, and he actually worked with me not to even sell me one of his properties. His Spanish at that point in time was way better than mine — so I needed his help for sure!

Tony and I ended up going to look at properties together for me to invest in Tulum. He actually became my consultant.

I spent 2.5 years creating an online training - ONLY for serious investors who...

And where you were talking about the emotional part of investing earlier, is exactly how I felt. I was super into another property where it was completely different than all the other ones that I had looked at.

The important thing there was exactly what you said. I was looking at the investment property here in Mexico from the laptop, online — for what I liked and wanted, like what I personally thought looked amazing just from pictures and became emotionally attached.

But when I went and looked at the property with Tony, we actually were sitting in the meeting, and the guy we met with was another developer, and he didn’t know that Tony was a developer.

So, Tony kind of just played the role of the agent for me. And when we walked away, he explained to me, look, I’ve been doing this for quite some time. Come look at my properties again. I’ll show you.

They (Aguasanta Vibe) had something unique.

Stairwell view in my personal unit — The Tulum Vibe


 

What Is A Lock-Off Design For Airbnb? — 08:22

Tony builds something called a lock-off. And I think this is important to discuss because this is a unique design for properties here in Tulum. A lock-off is when you have a separate entrance from a hallway where you literally can lock off a portion, maybe it’s a bedroom and a bathroom.

And that way, if you’re an investor, a foreign investor that doesn’t live in Tulum, but you still wanna come, you can still generate revenue by adjusting your Airbnb calendar, locking off the front door inside the apartment, and still being able to enter in the back from the hallway.

I didn’t realize the importance of that because I live here. The fact that I live here, I have a place to sleep in my own apartment in Playa del Carmen. But as a foreign investor, if you and your wife or somebody want to come, Tony builds these for the investor themselves as well as the guest so you can make your revenue while you visit.

You can have two separate entrances which are important.

The other thing is, I’ve stayed in a lot of Airbnbs here in Tulum. The quality that Tony has — is very noticeable when you stay in one of your finished products or at my place.

Sunset penthouse view with private pool

I’m not bragging about it because I own it, but I have, over the past year, I have stayed in a lot of Airbnb’s in Tulum that is just missing so much. In some of the developments, you can tell that maybe they had a bunch of money to build it, but they missed out on so many details — and that’s a problem when you start getting bad Airbnb reviews for little things.

It could have been their (new developer) first time they built it, and then all of a sudden they just built it because they know — Okay, well we can sell it for $150k, we’re just gonna make this money and skim on the part of building for the guest from Airbnb and focus on the investor or even just their own return as a developer.

Tulum Airbnb Penthouse Boutique development

Custom-made furniture with a Queen pull out inside Penthouse

But with Tony’s quality, everything from the cabinets to the furniture there’s a lot of thought and detail here. Something a new developer wouldn’t even think about is that there’s a lot of humidity here.

So with the wood and stuff like that, you need to make sure you use a local wood that’s not going to expand over time and your doors are going to be able to close properly. So I think that’s worth mentioning too.

Tony knows Tulum like the back of his hand. And it’s important to make sure that your emotions don’t get caught up, with your purchasing decision.


Keeping Your Emotions Out Of Your Purchase Decision — 10:43

Yeah, that’s important, you know, because I see a lot of clients from different parts of the world and the state that they want an investment property and they wanna rent it on the Airbnb market because of Tulum’s demand.

But once I (Tony) show them the property, you know, sometimes either the woman or the man is like, well, yeah, but the closet’s too small.

You know, I wanna walk-in closet or the bathroom, but they’re thinking about themselves. Whereas, if I’m there for 3, 4, or 5 nights as a guest, I don’t really care because I’m only bringing a suitcase with me.

So I don’t need the big bathroom. That could be actually wasted space.

Instead, that could have gone to a larger terrace, you know, with a better view to the jungle or a pool inside your unit, you know, or some sort of an amenity that’s gonna give the user an experience and become Instagrammable.


The Market of Tulum — 11:43

And in your case, I remember that you know, it was actually a really nice property, what you (Nick) wanted to look at, but it was very Spanish. I think it would be something that would attract the older generation.

I remember I told you that, and you were like, Oh, yeah, that’s true. I didn’t think about that. When the market that comes to Tulum is young, you know, we’re talking about, you know, the 25 year old to the 45 year old market, that’s kind of the range that comes to Tulum.

So you gotta get in their shoes.

And they’re not really thinking that they want this old school, you know, Spanish type of home. They’re looking for an experience they wanna see a tree going through their terrace. They wanna, you know, have this beautiful jungle available to them.

tulum terrace with a tree

The tree goes through the terrace outside next to the pool

They want to see art, they want to see the bohemian look, they want to see the organic materials of the area from here, not from Spain. And so, anyway, that’s why I directed Nick actually, and Nick ended up investing with us just by pure coincidence, really. Because it wasn’t really my intention.

I remember that there’s a friend that introduced me to you, and her thing was, hey, Tony it’s his first time investing here in the area. I told him that you would help him and guide him.

He might like your products. He might not. And actually, I showed Nick my products, but he already had something else in his mind. And so he’s like, Yeah, okay, cool, but hey, can you show me outside of your products? Like something like this, like this, like this? And I said, Yeah, absolutely.

Custom-built waterfall in one of our Airbnb properties.

 

We Represent The Buyer NOT The Seller — 12:40

Because one of the things that I do is in addition to obviously having our own products, what we do is represent the buyer. We have lots of videos on our channel showing clients around these units like this one.

And that’s important for you guys to know if you’re in the market, that you have someone that represents you, not the developer, not the seller.

If they represent the seller, then it’s in their best interest to say what they have, right? We don’t do that. We only represent the buyer. And so I’m not gonna guide anyone to a development of a developer who’s never done anything here before, or who’s known to do things, not in the best way, or maybe his designs are just not aimed for that market, you know?

So I told Nick, Okay, look, well, cause regardless, you know, if you allow me to represent you, we’re gonna do well, we’re gonna make a commission.

But it’s to me the same whether you invest with me or you invest, you know, in another development. But I’m only gonna guide you to developers that I know for a fact, that have done good things, that have credibility, that have good design, that have good quality, that think about the rental, that think about the end client.

Because if they’re not doing that, then they’re just really wanting to sell and, you know, and make a commission.

And if you’re interested in what a day looks like when you come to visit an investment opportunity here in Tulum with us, you can see what we do regularly with all of our investors here.

No, I was gonna say, yeah. So with that being said, I guess what, when, when we were introducing this, what makes a rental property successful in Tulum? Like, talk about the audience and the Tulum market.


 

What Makes A Tulum Rental Property Successful? — 14:00

The market here in Tulum, one thing is important to note is what they’re looking for is an experience, right? We keep talking about that. And I’ll continue to talk about that because it is the number one most important thing you see when people come to Tulum.

What we think that people are looking for is the beach, right? The natural wonders, like these underground water rivers called cenotes or the beach. Tulum was actually voted, I believe it was in 2018, the best beach in the world by TripAdvisor.

And even though these nature factors do bring a lot of people, and that’s why people like Tulum, it’s not the main reason, because you can find that in Playa del Carmen, you can find great beaches in Cancun, You know, yet Tulum is outperforming Playa del Carmen and Tulum when it comes to rentals and ROI.

Why? Well, because of the wellness factor, right? And those that understand what I’m talking about will know that the people that come to Tulum, they’re looking for that bohemian feel, they’re looking for that natural feel.

They’re looking for vegan options. They’re looking for a connection with nature yoga, and meditation — let’s call it the wellness market. And the wellness market spends way more money than any other one right now.

tulum wellness

I think it’s one of the top markets in the world. So, Tulum kind of just fits hand in hand with that, because Tulum has always been very orientated to small boutique developments.

You know, boutique restaurants, everything’s boutique.


 

The Law That Makes Tulum Different — 15:50

There is because there’s a law here in Tulum that is different than Cancun, for example, that only allows you to build X amount of construction in your land. You have to leave a lot of green, you have to save a lot of the jungle here.

This is what makes it perfect for these people that are wanting to come and connect with nature, connect with themselves, you know? And so Tulum, what makes Tulum different is the audience that it is attracting, right? Tulum is attracting an audience that wants to see something different.

They’re looking for this, you know, not the Miami or New York City-style 40-floor buildings.


 

Brief Azulik Overview — 16:25

They’re looking to stay, for example, here, this is the, a resort called Azulik.

Azulik does not just happen to be the most popular, but it’s also probably one of the most amazingly designed projects because of the look, and the feel — a hookah bar inside the resort that has these hanging nets that you can literally just hang out, you have beautiful, view to the jungle.

If you see the architecture here, it feels like you’re in a treehouse.

Azulik nets

Literally — That’s the experience. However, it’s not cheap. As a matter of fact, Azulik is the most expensive resort. You can come and have dinner in the tree tops of the jungle.

As a matter of fact, for example, this is what they call the nest. And the nest, you can rent it or you can have dinner. There’s a chef who comes, actually, you see there’s a little stair down here.

Kin Toh Azulik Restaurant

Kin Toh in Azulik

There’s a chef that comes, and brings you the food from underneath. He pops up in the middle, serves everyone, and then leaves. And you have this private nest hanging with beautiful abuse to the jungle.

However, there’s a minimum consumption of $2,000 to rent the main nest. And some of these nests have like $1,200 minimum consumption just for a group of four. This restaurant called Kin Toh is booked all the time.

It’s hard to get in there. You gotta make a reservation way in advance. The entire resort is an experience. And this is just one spot inside Azulik — there are other places to visit and experience?

So what’s really cool about the architecture is they incorporate the jungle. And that’s what people want. That’s why the people that come to Tulum spend more money.


 

What Our Tulum Market Study Revealed — 18:04

Matter of fact, we did a statistic, and we did a market study that revealed that per couple, they’re spending on average $180 more than Playa del Carmen or Cancun. And that’s in between hotels, activities, and Airbnb’s.

They’re spending $180 more than Cancun. Another thing that is happening in Tulum is this big exposure on social media. And that’s actually why Tulum actually has had this massive boom. As matter of fact, something unique happened a few years back where Noma, I don’t know if you guys have heard of Noma, but Noma is the number one voted restaurant in the world according to Restaurant Magazine.

They’ve been voted back to back four years, I think maybe this is the fifth year of being number one. They did a pop-up restaurant here in Tulum where they came for 21 days.

They, in the middle of the jungle, designed this restaurant and sold dinners for $700 per person and sold out in the first week that they announced it. And of course, you know, this brings down, your celebrities, your influencers, your bloggers, your digital nomads. But they’re a high-level digital nomad.


 

Tulum’s Massive Growth — Thanks To Social Media — 20:17

Another study that we did, revealed that the financial profile of Tulum visitors, speaking of a, let’s say there are 25-year-olds, 30-year-olds that come, they actually make more money than your 50–60-year-old retiree who comes to other areas like Cabo San Lucas or Puerto Vallarta.

We would expect that they’re spending a lot, because they’re probably very well positioned, and they’re probably later in their years. This, actually is not the case with Tulum, you know, it’s the high-end young entrepreneur, digital nomad, etc. What’s really making Tulum very popular — is this crowd.

And thanks to social media, you have people like Paris Hilton who come, they take their photos, they hashtag Tulum, and now 30 million followers now know about Tulum.

I spent 2.5 years creating an online training - ONLY for serious investors who...

And the same with Beyonce, Siena Miller, and Al Pacino, who was just here amongst many other celebrities. And recently, actually, thanks to all that, Tulum had this massive spike in its tourism.

There was an article written by Forbes that says that in 2016 Tulum’s occupation increased by 74%.

That has never happened.

We’ve been doing market studies for years in Cancun and Playa del Carmen, and we have never seen that type of growth yet. Tulum is having that.

And of course, what that’s now allowing is for anyone who previously had already an Airbnb, their Airbnb was paid for already through the rental market.


 

Return On Investment In Tulum, Mexico: 21:00

I mean, these investors were getting at the time, and we’re still seeing really high returns, but imagine if you had an Airbnb right in this boom. I mean, they were getting returns of 15% – 20% in rental returns in Tulum.

And I know this because again, you know, not just our market studies, but I also have property myself that I, I began renting early on.

Now that was right as a spike happened.

And then more and more and more and more people started to know about Tulum and the investment opportunity. Obviously more and more developers started to go crazy about building in Tulum.

And right now, what we’re seeing you know, as far as returns, if it’s a decent property, it’ll make you anywhere between 8 to 10% net returns.

Low-season and high-season rental prices

If it’s a property with good design, a good marketing strategy that has a lock-off system like you were talking about earlier, now you’re getting into your 13%+ returns.

This also doesn’t include the appreciation — what you’re referring to is that’s just straight off from the Airbnb returns.

So it’s even higher with appreciation from the Tulum investment.

If you add the two together, annual appreciations right now in Tulum, which are higher than Playa del Carmen or Cancun, they’re probably somewhere around 8% — 10% annually bringing the total to around 20%


 

What Are The Annual Appreciations Of Cancun or Playa Del Carmen: 22:00

There are certain areas of Cancun that are a little bit more attractive than others, but overall it’s between 6% and 7%. Playa del Carmen is about the same, 6% to 7% and Tulum is between 8% — 10%.


 

How Long Will The Tulum Airbnb Market “Boom” Last: 22:30

How, how long do you think this Tulum boom, of those percentages, would last?

I mean, I know because you have a lot of market research from, you know, one of the big partners that you’re working with. I’ll let you drop that name. But you know, what, how long do you think that that will last?

Good question.

Well, so as developers, you know, we always have to think ahead and do our studies and do our research and our due diligence and so forth. And we’re always trying to figure out what’s gonna be the next Tulum as well, right?

So we can invest early.

And so I’m gonna give you the feedback and the opinions of my company and my partners, and everyone will probably have a different say on this.

But we give Tulum anywhere between 7 and 10 more years where you’re gonna have this really wild demand and high ROIs. Now, after the, let’s say eighth, or the ninth year, where we expect to see a more balanced ROI.

Now, that’s not to say that it’s gonna be low, it’s just gonna be a little more balanced like that of Cancun.

Cancun’s been around 50 years, right?

Playa del Carmen has been around for 25 years.

Tulum is actually around 13 years. So the municipality of Tulum is super young, 13 years. Think about that. Yeah, right? That’s wild. So, you know, a lot of people saying, Oh, but it’s, you know, it’s growing a lot and it’s gonna become like Cancun.

No, it’s impossible for many reasons. Number one is the infrastructure.

There are a lot of underground water rivers you can’t build on the land there — like physically cannot build. There’s a lot of national reserve land that you can’t build on even if you wanted to because it can’t even sustain a foundation being built.

It’s like swamp land.

So there’s a lot of swamp land, there’s a lot of mangroves, there’s a lot of underground water, rivers you can’t build even if you wanted it to. So, you know, you take the entire map of tum and when you narrow it down, you can really only build in about maybe 30% — 40% of Tulum.

Everything else is out of reach because of that. So that’s exciting.

Red — Can’t Build | Green — Can Build

 

Map Of Tulum | Can I Buy Beach Front Property In Tulum, Mexico? 25:10

From the perspective of an investor like myself, like you as well, eventually over time it won’t, like my property in Aldea Zama, you won’t be able to get any closer to the ocean than that.

Which would probably drive the prices up, right? Just because you can’t, it becomes a factor of supply and demand at that point. I mean, if there’s no more land but yet there’s demand still, the available supply price rise.

And you see, that’s what makes it even more of a valued asset than investing elsewhere for an Airbnb property. So I’ll show you what I mean by that.

Take a look at the above map with green and red boxes. In the bottom right corner, we have the highway coming from Cancun. So Cancun would be an hour and a half to the right. Playa del Carmen would be to the right halfway to Cancun as well.

You need to come south, and then you get to the first major street. This is the street that currently takes you all the way to the beach called Coba.

And then you make it to the bottom of the map where the lowest green box is right above the skinny red box. This is where you have all of your beach, entertainment, restaurants, and boutique resorts like Azulik in the skinny long red box.

The heavy grey area inside the large green box is downtown Tulum. And then I’ll talk about this in a sec, but let’s go over here to the left.

In the largest red box, we have a Tulum reserve called Sian Ka’an, and all this is protected by the state and was declared a World Heritage Site by UNESCO.

And again, even if you wanted to, you can’t build, there is no land available. A lot of people ask me, Tony, can I find something on the beach in Tulum to build on?

Well, unfortunately, yes you can, but it probably would be just for luxury.

If you buy a piece of land here in this little strip, right, right on the beach — on the bottom part of the red line in the largest red box, the law states that you’re only allowed to build on 15% of that land.

So you’d have to buy a massive piece of land.

You could only build on 15%, and you can only build two stories. So you’re gonna end up with this beautiful villa, you know, but it’s more of a luxury. You’re gonna spend a couple of million.

And so it’s more of a luxury than a rental property.

These are all underground water rivers. Same thing you can build here, but you gotta build something like in a tree or a little, you know, this little boutique restaurant or bar. And that’s what you see in Tulum.

That’s why you don’t see anything higher than two stories here. And then inside all of the green boxes, is where you can really build.

In the bottom right red box, it says “Area Protegida,” that’s protected land because this is the Mayan ruins. This is where you have the Mayan pyramids. Which is awesome to come to see, by the way.

But it’s protected land.

Tulum Mayan Ruins — protected land and can’t build

So if you’re talking about, you know, being close to the beach, being close to everything, then this is where you want to invest — in the green boxes.

And where we invest or where we have currently built, and there are other developments as well, is this area called Aldea Zama — in the second green box to the right from the bottom.

Aldea Zama is beautiful and has lots of infrastructures there. It’s considered a planned community. So it’s a great place and you will know who your neighbor will be and where restaurants are placed etc.

Aldea Zama has an internal regimen that does not allow you to do certain things. So when it comes to designing and building, there are rules and regulations everyone must follow so everything here looks beautiful.

There’s a commercial area, and you’re literally five minutes from the beach.

Now this other piece of land that you see in the large green box towards the bottom with the pink color inside, is called here is called Selva Zama. This is a 10-year project. I’m sure you’re asking how long will it be.

We’re being conservative in saying 7 to 10 years. It could easily be 20 years.

I mean, this piece of land here hasn’t even been developed yet. The owner’s actually, the person that I work for Rodolfo Rosas. He’s the one that I worked with and is my mentor.

I was the sales director for his company for many years. He’s the largest developer in the Yucatan Peninsula. He’s my mentor and he taught me everything I know.

And that gentleman owns all of this in the big green box at the bottom of the map. I’m very close to him. We just had lunch actually.

This is a seven-year project itself.


 

Where Are The Best Airbnb Markets and Why To Invest In Tulum? 27:50

Where you can invest outside of Selva Zama and Aldea Zama are the two furthest left green boxes on the map. These are called La Veleta and Region 15.

These areas are up and coming. These are good areas where you can invest a lot of upside in the future.

All the streets are being paved.

As a matter of fact, there’s, there’s another street that runs along Aldea Zama and Selva Zama — which gives it that straight line along the pink area — this street is called Kukulkan, and just opened in the past year.

It just got paved and now it takes you all the way to the water, right to the beach, just like the main street named Coba on the other side.

So this is also another good destination to invest in Tulum as well, thinking of the future. And then of course, eventually, as this is bought out as Nick said, you’re gonna be forced to now buy in the other side of the highway above downtown.

Nothing wrong with that.

But if you wanna be close to the ocean, if you wanna be close, you know, to the rest of town, the beach and all, then you know you wanna be here. However, there are other areas that are growing that I could recommend as well, that are in all of these green boxes.

And what they’re doing in some of those areas. Actually, we have a project as well called Aldea Uh May, which is in the top green box, about 20 minutes from town and from the beach.

Aldea Uh May — Designed by Pininfarina

But the reason why we chose to be out there is because our concept’s different. It’s basically an oasis in the middle of the jungle. It’s a very sustainable development. Lots of technology. We partnered with a large architectural firm named Pininfarina who we’re doing that with, but we needed a bigger piece of land.

We didn’t wanna be so close to the hustle and bustle. And that was the concept, and that’s why we decided to invest out there.


 

What Should I Avoid When Investing In Tulum — 30:25

What is something to watch out for when investing in Tulum? I get this question a lot of times from our investors. I see the comments on our different YouTube videos.

A few common ones are:

Can I buy something that’s close to the beach as an American?

Do I get to actually own the property in Mexico?

Is the cartel gonna get it?

Do the banks own my property in Mexico?

There are a lot of different things that people, I think misinterpret and they don’t fully understand. But also even from a quality standpoint or from a trust standpoint, like trust, meaning, like who, how do you, how can they trust somebody to help them find a property and stuff like that.

So what are some things that, you know, you’d say to look out for when investing?

I’ll simplify it.

The main question is, can I invest in Mexico as a foreigner? Yes.


 

What Is A Fideicomiso and Trust? — 31:00

There’s one particular vehicle that allows you, to invest, and that is called a fideicomiso, otherwise known as a trust. So a few years ago, many years ago, the Mexican law signed an agreement and they wanted welcome foreigners because tourism is our {Mexico} second-largest economy.

In Mexico, tourism is the second most important economy next to oil. And so we’re a very neutral country. That’s a massive deal.

Even during Covid, you know, we never closed our borders. You know, we still had a 65% occupancy in our condos during the pandemic, which was wild.

We were the most visited place in the world next to Dubai in the last two years because we were open.

So that tells you a lot about the country. The country wants your business here.

So the vehicle that they created was this trust, which allows you now to buy as a foreigner.

So basically the way that that works is there’s an intermediary bank that holds the title. That title is held in a trust. And you are the beneficiary. You can sell it, you can rent it, you can profit out of it whatever you want. You are the beneficiary of the trust.

Obviously, there’s a one-time cost for the trust ($1,900) and there’s an annual fee. It’s a small fee every year — $500. And that’s it. That’s the most popular vehicle. That’s probably the most popular vehicle I would recommend.

Another one is to create a Mexican corporation unit Mexican partner in order to do that.

If you have a mixed corporation, that means that you have to have a lawyer involved and more importantly, an accountant that does your checks and balances every month.

And that can be an added cost. So to simplify it, I would say trust is the best vehicle. There is no double taxation.


 

What Are The Property Taxes In Tulum, Mexico? — 33:10

Many people worry and say, Tony, if I buy here will I have to pay taxes in Mexico and the United States? The answer is no — there is no double taxation.

You only pay the taxes on a foreign investment here in Mexico, which is great because you know, it’s probably gonna be a lot less than what you’re gonna pay in the United States. And if you have a good accountant, right? I mean, you can pay very, very, very low taxes on your property.

And another thing, annual taxes. Let’s talk about your annual tax. In Mexico, roughly, this is approximate, the tax here is .05%

So if you bought a half-a-million dollar property, you’re paying $500 a year, that is your property tax.

That’s crazy – my family lives in California still. My sister’s out there, she’s got a lot of property and we were discussing the other day about returns. And she was like, you know, she’s got like 40 properties. And she’s making like 6% — 7% ROI and you know, that’s good, that’s a good return.

But she thought it was more.

But when we minus out the annual tax and you take all that into consideration then those numbers drop considerably. And so that’s a huge advantage here. No double taxation annual taxes, you know, 0.05% when you buy the property, yes, you have to go through the closing process.

You have to hire a lawyer, you have to pay an acquisition tax, and you have to pay the notary, right?

That validates the purchase and the trust and all that.

That’s gonna cost you anywhere between 6% — 8% depending on where you invest. If it’s Tulum, Playa del Carmen, or Cancun, and depending on the notary. And really that’s it.

There is no ongoing cost other than your HOA that you’re gonna have depending on, you know, the amenities that the development has and so forth.

So that’s as far as the process.


 

What Kind Of Investor Are You? — 35:09

Now, as far as where to start, you know I would say definitely do your due diligence. First of all, decide what type of investor are you. If you are someone who says, Tony, I’m looking for rental property, then talk to people who have experience in the rental market, because there are developers who build homes for people who wanna live in them.

There are people who build housing for low-income housing, and then there are developers who build rental properties.

There are only a few of those, but those are the ones you wanna look at.

As Nick said earlier, if you want this to be a rental property on Airbnb, then you have to look at the design and concept.

Your Airbnb rental unit needs to have that Tulum touch, that Tulum feel and become Instagrammable.


 

Tulum Airbnb Rental Management Company: 35:47

The furniture, the decor, and everything have to be looked at. For example, one of the services that we provide if you do invest with us, is furniture fabrication — you’re not just buying directly from the developer who happens to design rental properties for the end user.

Meaning that our design is unique for the rental property and for the rental user. But in addition to that, we also help you with the rental part. So we have a rental company that administers your condo, does the rental strategy on Airbnb, fabricates the furniture, and provides a full 360 turnkey investment.

You know, we create content for your property. We create a unique Instagram and Facebook account just for your unit, and that helps, you know, more traffic to Airbnb and so forth.

Tulum Instagram Account

Tulum.Boheme.Chic

We charge a fee. Obviously everyone’s gonna charge you a fee. Those fees used to be 15%. Now it’s more like it starts at 20% and it goes all the way to 35%.

That’s what they’ll charge you to rent your property. We charge our clients 25%. We don’t charge any monthly. That’s just a fixed rate. If we rent, if we don’t rent, we continue to administer to take care of your unit.

But we don’t make any money unless we rent the unit for you.


Live View of The Best Airbnb and Short Term Rental Property Results — 36:56

With that being said, let’s check out your Airbnb property, share your screenshots and we’ll look at the returns. Mine just started renting right before Christmas.

Okay, cool. So, I’m gonna show you guys two different developments. This is one of the ones that we did inside Aldea Zama. This one is called Aguasanta.

Aguasanta Tulum Development

So the concept’s all about water. Every unit has its own private pool. There are big pools, as you can see here on the lower left. This is just one of the ground-floor units. This is a pool that wraps around your unit. And over here on the right-hand side, there’s a nice little waterfall. It wraps around.

So you come into your unit, you hear the water, and then over here on the right-hand side, you have the jungle behind this pool.

Notice all this jungle, all this that you see here will stay as is because this is a planned community that we bought in and we bought this piece of land because we knew that they were not gonna build anything here.

So this development here, it’s nine units.

And then the penthouses (below) are three bedrooms. And they’re triple lock off — meaning that you can separate it into three units. You have two bedrooms in the ground floor, and then you have one unit on the top with a different entrance from the hallway outside.

Aguasanta Tulum Development Airbnb Property

3 Bedroom Lock-Off Penthouse in Aguasanta Tulum

This unit can be rented as a studio penthouse because it has its own pool. You can check out the Airbnb link here.

So you see the four squares here, right?

The square on the right is the ground floor of the penthouse. So you see there’s one pool, and then over here on the left, lower part, you can see another pool — that’s the same unit, but it’s the pool on the upstairs.

And you can see the window with the balls there? This is a two-story. I think they call them lofts in the United States, right? You can hang out on the balcony — which is another living room and it adds extra space for those “instagrammable” moments for guests to get a unique experience.

Who wouldn’t want to be on in a penthouse over the kitchen looking through the jungle with a pool below?

This penthouse has a double ceiling. So it’s very impactful.

You know, we did marble floors, and granite counters in one building, then different finishes in another building — where Nick bought his penthouse unit.

We used a local material that we put on the walls called, chukum — and it’s like polished cement.

Chukum wall finish in Tulum Airbnb

Another Penthouse — Tulum Boheme Chic

So it looks very organic very retro. And now, now I’m gonna switch.

So that’s one development.

Then we have another development where the finishes are different. This is, even more, Tulum, like this is more bohemian. This is polished cement, for example.

So you guys can see here the walls are polished cement. We used a lot of wood. This is a custom penthouse we did for a client of ours, by the way. This is a fully custom-made penthouse in all aspects.

This client is one of the best-performing ones on Airbnb.

This, this client is seeing a 13% plus return. And we have some months that this unit will make like $8,000 — $12,000 per month net.

Obviously, I’m talking about the high season, like December, end of December, particularly because of Christmas, all of January, including New Year’s, February, March, and a little bit of April.

These are our high season months in Tulum for renting on Airbnb.

Then we have a mid-season.

We don’t really have a low season anymore — July and August can be low because of the heat, but the units still perform.

We used to, but because of the demand in Tulum now it’s really mid-season, high-season and holiday season.

And what they’re looking for is this, this unit right now, you can find it online. It’s for $600 a night on average. And in the high season, it goes all the way up to $800-$1,200 dollars a night.

This is a four bedroom cuz we converted it into a four bedroom. In that same building, we have these, actually, I apologize, this is another building now called Aguasanta Vibe.

Tree Concept in Aguasanta Vibe

Noticed how the design is very unique.

We left trees within the property, this tree actually runs all the way up to Nick’s penthouse unit. And this is the actual Airbnb profile photo of the unit.

This little photo brings us so many clients because people are looking for the experience, right?

We even have an artist who came in and did this mural. Awesome mural. On the walls, these are the bathroom actually. We designed, by the way, all the furniture custom-made to every unit.

I’ll show the Airbnb results. I know that people are gonna wanna see that. A lot of people don’t show actual real live Airbnb data — they will talk about it, but not show you the results.

I have no problem showing you mine.

But before I do that, this is Nick’s unit in the same building.

The Tulum Vibe Airbnb with Mural

The Tulum Vibe Penthouse

This is a 3 bedroom, 3 bathroom penthouse and also has two private pools and 3 balconies. There’s one pool outside near the mural, and then there’s one pool upstairs in the lock off penthouse unit.

We did custom-made art. This is like 25 feet by 20 feet probably.

This is a massive, massive piece of art that we did, particularly because again, the clients want an experience, right? And so we left this wall, the double height so that we could do something. And then when Nick invested, I had some ideas and said, Nick, we should do this.

And I didn’t know if he’d be open, but Nick’s like, yeah, let’s do it.

Let’s make it happen. And thanks to this, what did you rent this for on Christmas and New Years Nick?

I’ll show you. I think it was like $2,000 bucks for two nights. It did very well.

Tulum Airbnb New Years rental amount for investor

Having a successful Airbnb in Tulum is not just having a good design and having an amazing experience.

The last thing I’m gonna share with you is having a good concierge service, right?

So the rental company has to have a good solid strategy and services like pick up at the airport, chefs on site, scooters, if they wanna rent tours, 24 hour security, and someone that’s gonna help them with the bags when they come in.

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You need to help the guests have this good experience — not everyone speaks English here — so you have to guide them if they wanna get a taxi or some things we take for granted on a daily basis.

And so that’s what we’re doing with Nick’s property.

That’s what’re doing with our properties and that’s what’s allowing us to see these very high returns on investments with Airbnb properties here in Tulum.

I’m gonna just show one of my units.

Aguasanta Vibe Tulum Airbnb

Aguasanta Villa

This is a unit, actually, it’s a ground-floor unit.

The ground floor unit with a big pool. This is the opposing corner. Actually, this is a unit that my partners and I decided to keep.

We decided not to sell it because we started seeing how much our clients are making. So we thought we should probably start keeping properties ourselves.

So it’s a two-bedroom private pool, two bathrooms.

Even though we kept this unit — had we sold it, this would’ve sold for about $400,000. It’s not for sale. But that’s what we would’ve sold it for. So now let me show you guys the results of this unit on Airbnb. And we can always go back to this if you got if there are any questions later.

I’m gonna go over the insight here. This will show us the earnings. And again, most people are not gonna show you this.

Same 2 Bedroom | 2 Bathroom Airbnb Unit — Price is Pesos not Dollars | 20:1 Conversion Year 2022

So for example January 2022 the unit made $193,000 pesos that’s about $9,000 USD. Okay?

This unit made us $9,650 with a 20:1 currency exchange rate in January.

It did about $8,000 USD in March. and up to today October 4, 2022, we are sitting at $999,792 Pesos. If you divide this by 20, by the way, that’ll give you the figures from pesos to dollars — which is $49,989.60 USD.

At the time of writing this, we still have about 3 months left in 2022, and we’re already expected to surpass 2021 revenue when we didn’t rent in January and February — since the unit was not ready at the time.

Now let me show you last year statistics for this unit.

Actual Tulum Airbnb ROI numbers

2 Bedroom | 2 Bathroom Airbnb Unit — Price is Pesos, not Dollars | 20:1 Conversion Year 2021

Have in mind this same unit guys began renting in March. It wasn’t ready to be delivered yet, so it started renting in March. So you see March made about $3,500 USD.

Then as it started to get positioned on Airbnb, with more reviews, and more traffic, the algorithm started to pick it up. So check this out – we did just over $1 million in pesos — which is a gross number of $50,557.55 USD.

Now that’s gross. Obviously, there’s an HOA. You got the 25% that we’re gonna charge you for rent or whoever rents it for you. You don’t have to do with us.

So I take out about 33% of that number. So $50,500 minus 33%. So that’s about a $33,800 net return on a unit that was $400,000.


Tulum, Mexico Airbnb Occupancy Rate Data 47:37

Here you can figure out the ROI. We had 212 nights rented out of the year.

So from March 2021 we had a 79% occupancy rate.

That is very, very, very high. This is not normal. I do wanna clarify this. Not every unit is gonna make this. You gotta have a good strategy like what we do for our clients.

The average nightly rate went between $2,000 pesos to $9,860 pesos. So if we average it out, it’s about $250 USD for the average night that was rented. And that’s just one unit we have in our rental portfolio of over 55 units today. So yeah, pretty, pretty exciting stuff. Nice.

So with a 79% occupancy rate at 212 nights rented with a net return of around $33,800 that comes out to about a 9% ROI if we were to sell this unit for $400,000 today.

And I do wanna make the disclaimer again guys, don’t get caught up in the hype because you’re gonna hear a lot of it. Most agents will give you the best-case scenarios. For instance, let’s say the unit I just showed you, they then start to think that all developers are making that or that all developments will make that and that is not the case.

You really gotta talk about the strategy that they have.


 

What Type Of Property In Mexico Is Going To Rent The Best? — 53:22

Earlier you asked me, Nick, what makes a good rental property? It’s important to have a good rental obviously — but I missed one thing.

Be careful to buying developments that have more than 25 units. Because think about it, right? If you buy into one that has 30, 40 units where you’re competing against 30 other people in the same development that are all trying to do the same thing — it doesn’t set you apart from the competition or make you “unique.”

We don’t do any developments larger than 24 units because that’s what keeps a high ROI. They’re more personalized, including personalized services, and that’s what people want.

This is my Tulum Penthouse Occupancy rate for the year 2022.

61.3% Occupancy rate on my Tulum Airbnb for 2022.

I had some personal things going on during the year and did not spend time decorating the unit as I would have liked to up until about June 2022 as you can see clearly in the graph when we started implementing the right strategy.

When we did start implementing the right strategy — compared to other listings, we were 26.2% higher in performance as shown below.

Tulum Airbnb Occupancy rate

26.2% higher occupancy rate than other listings in Tulum.

This allowed us to grow to increase to a 69.7% occupancy which allowed me to generate more money obviously.

My account is super, super old. It’s about eight years old. I have like something 800+ 5-star reviews on this account. I’m a super host. I’ve been doing this for quite some time. And, and over time I create new listings.

Like I’ve had this house in Brooklyn for four years which helps build Airbnb credibility on my other listings.


 

There Are 2 Types Of Markets In Tulum — 56:18

What’s gonna rent more — a three bedroom versus a one bedroom? You know, what should I look for when investing in an Airbnb in Mexico, specifically Tulum?

Obviously, that depends on your budget and what you feel comfortable investing in. But I would say the following — number one, there’s a lot of studios being built right now, a lot. And so we foresee that there’ll be a little bit of an over saturation in studios.

So even those studios right now are probably renting at a decent rate. But, over the course of time, that’ll balance out. So that’s studios.

Then you have one bedrooms, there’s not a lot of one bedrooms.

There are either studios or two bedrooms. So the one bedroom I think is a good opportunity if you don’t wanna spend a lot of money one bedrooms can start anywhere between $150,000 to $200,000 for one bedroom, penthouses, and so forth.

And I think there’s a, there’s a good area of opportunity there.

Now, I’m not saying studios are not good ones.

Studios, you can find studios for about $120k — $130,000. They’re gonna be about 400 square feet per studio. One bedroom is about 600 to 700 square feet.

And then we get into the two-bedroom where two bedrooms do well overall, I think two bedrooms is a very super solid investment.

Two bedrooms are gonna start anywhere between $250,000 to $400,000.

The range gets a little bit larger because it really depends on many factors. Depending on the location, the finishes, the design, and the amenities, are going to directly affect your ROI.

So a lot goes into it when you start getting into the larger condos. And then you have three bedrooms and then you have three-bedroom penthouses, very different.

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It could be a ground floor, three bedroom or three bedroom, penthouse, ground floor, three, four bedroom probably be about $400,000 and more.

Penthouses — three, four bedrooms are gonna be about half a million dollars plus, you know, $500k to $700,000. So I guess I would say, what do you feel comfortable with? Obviously the more you invest in a foreign short-term rental property in Mexico, yes, the more possibility you’re gonna have to make money.

But if you wanna get your feet wet, I think starting with a one bedroom, two bedroom if possible would be a great idea. A lot of my clients look for studios because it’s an easy entry point to start with something small, take advantage over the next few years — and build my rental portfolio.

This also allows you to build your reviews online, and then they might sell the unit right, maybe 30% on it, 40% by that point, and then roll it into a two-bedroom or buy a two-bedroom, roll it over into a penthouse.

You don’t have to jump into anything, anything big or massively expensive right away.

I think anywhere between $120k to as much as half a million is what the Tulum short-term rental market is going for. But make sure you do your due diligence.

There are two markets, by the way, there’s a resale market, meaning a product that’s already finished and built and ready to be delivered. Those are gonna ask you for a hundred percent of the money because it’s ready to be delivered. There is no banking or financing from Mexico, meaning that Mexican banks will not finance foreigners.

That’s very important.

A lot of people think that they can get financing down here from a bank. That’s not correct. Your traditional US banks will not finance you to invest out of the country. So how do we close more sales?

They’re actually done cash on cash.

Unless you can, you know, you can, you can get your own personal loan in the states or get a mortgage loan against your property and use that money to invest down here.

There are some private lenders down here that will finance foreigners.

Interest rates are not like the United States. You know, you’re looking at 11%+, for these private companies.

They’ll finance you over 10 and 15, 20 years. It takes time. It’s not a quick process. It can take as little as three months to as much as a year to finally get your house if you go with these private lenders.

One company I know is named Moxi — I would also stay very very far away from a company named Tu Casa Express. I personally used them and I promise you — please stay very very far away from them.

There’s a lot of paperwork involved, a big process, and, you know, a bit of a higher interest rate. But then again, if you’re making a good ROI on your rental, that pays your interest and you’re basically, you know, not paying 0% interest. So that could be interesting as well. And then I think maybe talk about what we’re gonna do, Nick, over the next or what else we have on the agenda


 

Working With and Finding Real Estate Agents In Tulum, Mexico — 58:39

The last thing I think is working with real estate agents in Mexico. We went over a lot. I’ll do a quick overview of what is it like working with real estate agents here in Tulum, Mexico and how, basically Nick and myself are different than real estate agents.

I’ll share with you how you can work with us and then we’ll give you our contact information where they can reach us and you know, how they can get in touch with us.

So in Mexico and in this region particularly because everything is new, right? Like I said, Cancun, which is the oldest state is 50 years old, and Tulum is only 12 years old or so.

There is no MLS system in Mexico.

Lots of people think they can go online and find everything listed on a site like you can in the United States on Trulia or Zillow etc.

There is no MLS system here. You have to find the developer direct or go through an agent. If you go through an agent most of the agents aren’t here to be quite transparent. I would say over 95% of them do not have a real estate license.

You don’t have to operate as an agent. Nick doesn’t even have a real estate license. I’m not a real estate broker myself or a certified real estate broker either.

But here it’s more of a, who do you know, right?

So for example what makes us different in that aspect is we’re developers first and foremost. So whenever I go to another developer and I say, Hey, I have a client because they didn’t like my product, but I like your company and we probably already have a relationship, I probably already know who they are.

They already know who I am. I trust in them.

It’s a different conversation than if I was an agent.

So, you know, I sit down with a developer and directly ask them the tough questions. I wanna make sure that they have the funding first and foremost, that they don’t depend on the sales, on the pre-sales to build the property because you’re starting to see now more and more developments that are not being delivered on time.

Some Tulum developments are just left halfway completed because they didn’t have the funds and relied on pre-sales and couldn’t sell them.

There’s a lot of that now because there’s more demand and more new developers. People think it’s easy to develop and think they can build it with pre-sales and that can be dangerous for an investor.

So, that’s one of the things that’s different.

And then know this, there are two types of agents. The agent that represents the seller, and the agents that represent the buyer.

A lot of times we get confused or don’t know. So we go with an agent that showed us something online. They say that they’re gonna help us and represent us, but they’re gonna try to sell you their developments and they’re not allowed to sell anything outside of that.

So of course they’re gonna talk negatively about other developments. They’re gonna talk negatively about others, which is unfortunate — but that is how it goes.

Hopefully there will be some sort of MLS system in place in Mexico over the next three to five years, I say.

But we’re not near creating that system just yet.

So be careful with that.

Just ask them — hey, are you, are you representing the seller or do you represent the buyer?

If they’re developers, they’re gonna represent always the seller. Now, there are a few agencies that represent the buyer, meaning that they look out after you and you only.

Now, if they tell you that they represent the buyer, ask them, do you have any real estate developments in exclusivity? Because they can be open to showing you everything, but they still have certain agreements with certain developers.

So always ask, do you have any properties exclusive to you? And if they say yes, just tell them which ones and then ask them to show you other options as well. But, they have to be upfront and honest about that.

Nick and I don’t represent any other developer. We don’t have any exclusivity with any developer. We only represent the buyer.

Mainly because obviously I already have my own products, so there’s no need for me to have any other exclusivities. But most importantly, because 99% of our clients are foreigners, meaning they’re not from here.

They’re from the United States, Canada, and Europe now we have a lot of Asian investors, and the rest of Mexico, Monterey, Mexico City, and Guadalajara, we call their foreigners to the area as well.

So yeah, 99% of our clients are not from here. And so we decided to only represent the buyer. But again, you know, I have good relationships with about 12 developers that I fully trust because I’ve known who they are. I’ve seen their product, I see their quality, they have good rental strategies, you know, and they’re to be trusted.

So, I don’t deal with the 200-plus products that are out there.

We might only have 12 to 15 that I really trust. And of course, there are new developments all the time. We all do our research, get to meet with the developer, you know, get to ask tough questions and if they qualify, we add them as part of the options to show our buyers.


 

Let’s Connect And Work Together

Hopefully, you want to invest in short-term Airbnb rentals here in Mexico and decide to take a trip down here! We’ll pick you up at the airport, we’ll show you around, and help you with your Airbnb investing journey.

If I’m available, I’ll personally host you. Otherwise, we have our team.

Obviously, Nick here will help you as well.

That’s pretty much everything I think for now. If you have any questions, just write a comment in the comments below.

You can always reach out to Nick on Instagram and send him a message to set up a Zoom call and we can work with you exclusively to help you learn how to buy a foreign property in Tulum and take advantage of the short term rental market here in Mexico.


👷🏽‍♂️ To learn more about who Tony and myself are please watch our FULL documentary here: https://bit.ly/3pFCY3F

💵 If you only had $100k to invest here in Tulum, you should check this video out we made — https://bit.ly/3bEV41S

💰 If you ever wondered how much money an Airbnb in Tulum can make, watch our backend Airbnb dashboard where we share live data here — https://bit.ly/3NLw0Uj

🏡 To view the marketing material of our new development in Tulum click here: Muki — https://bit.ly/3c75VlL

📈 The Tulum real estate market will continue to grow. To learn more as to why the Tulum market will continue to grow — please check out this video: https://bit.ly/3cfqV9G

🏖 If you would like to stay in my personal unit, you can book it here — https://bit.ly/3QY4oy1

🏢 If you would like to see some of our other units, click here –https://bit.ly/35p8PPc

📸 To connect hit me up on Instagram — http://bit.ly/2OoB0VO

📖 Read my free Investing Book how I quit my $150k salary job –http://bit.ly/2OpOH6H

Who is Nick D’Urso? — Watch my story here: https://bit.ly/3xNQOmq

Download The Complete Blueprint To Making 6-Figures On Airbnb With The Right Property In Mexico

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About Nick D'Urso

He purchased his first international property in Tulum, Mexico after learning the ins and outs of Airbnb for 5 years. Traveling the world for 2 years and meeting his business partner, Tony Martinez – he saw an opportunity to help other investors learn what he did. 

Tony and he help build, develop, and manage properties for other investors. Focusing on finding the best opportunities with the highest returns is what they both excel in.

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