An Exciting Income Opportunity in Mexico You Should Know About

Owning a short-term rental apartment in a good location is a great way to get a regular income. But managing a rental can be a big pain. That's why I like short-term rental investments with a big rental check but no landlord hassles.

I just found a deal like this in a Mexican resort. The location is perfect, on the stunning Maya Riviera. The price (from $149,000) offers great potential for capital appreciation. And the pre-construction terms (monthly 0.5% payments) are the best I’ve found in Mexico.

But here's why I'm really excited about this deal--you get a guaranteed net rental yield of more than 6%. That means after all expenses are paid, your rental checks are guaranteed to be 6% of the purchase price--in the case of a $149,000 unit, you'd get four rental checks a year for $2,250 each. This is a type of resort rental…but because of the fixed payments, I call it a "Gilt Resort Program". There aren't many of these programs around--and this is the first one I've found in four years that ticks all my boxes.

Here’s how this type of resort deal works: The developer plans a condo building built to hotel specs. He pitches the location, type of units, and amenities to a hotel operator. If the operator likes it, he agrees to lease all the units in the project. The term is fixed. The rent to be paid by the operator is agreed in advance. The operator takes on the entire risk of renting the rooms. He works with the developer on standard unit fit-out. Furniture and fit-out is typically included in the price.

When you buy a unit that's part of a "Gilt Resort Program" like this, you get the same deal with the hotel operator that the developer usually gets. That means you won’t have to do anything…except lodge your rental checks. All the hassles that go with managing a rental--finding tenants, paying utility bills, fixing a leak--belong to the hotel operator.

The operator in this case is one of the biggest and most successful hotel and vacation companies in the world. The location is amazing, accessible, and appeals to North Americans, Europeans, and Latin Americans. The pre-release, pre-construction pricing offers potential for capital appreciation. And the payment terms I've negotiated for members of Real Estate Trend Alert means monthly payments can be as low as $745 during the build period. Furniture and fit-out is included in the purchase price. The operator picks up the tab for all the expenses--you don't pay utility or condo fee bills. You get to keep your rental yield of more than 6%.

Real Estate Trend Alert members will receive my full report on this opportunity today. You still have time to get on that mailing list--sign up with this link.

Ronan McMahon
Executive Director, Pathfinder Ltd.

To read more IL articles by Ronan McMahon, see:

A Little-known 448-year Bull Market That Continually Outperforms the S&P 500

My Favorite Commercial Real Estate Play Right Now

My Ruined Vacation Could Make You a Lot of Money