Tuesday, February 9, 2021
Dear Your Overseas Dream Home Reader,
Ping. Buzz. Beep. Check your tech.
Ring. Ping. Ting. “You have new messages.”
My phone is on the coffee table beside my laptop. I’m standing by my espresso machine looking out at the blue sky above the ocean.
I’ll have a coffee before diving back in.
Texts, WhatsApps, emails…I have some contacts using Signal now…
Scroll, scroll…details of deals. Proposed pricing…requests to talk…to meet…to get my boots on the ground at some potential opportunity. Suggestions of regions to scout…towns to explore…
Thousands upon thousands of possible deals for members of Real Estate Trend Alert. Millions of dollars spent on travel and research.
And vast, untold numbers of messages…
The truth is, I’ve got a thorough filtering system. I’m only ever looking for projects with very special attributes. Closest to the beach, best amenities, landmark design.
And then…I want only a best-in-class developer. Someone with an impeccable track record. I like developers who have been around a while, for example, if they survived the 2008/09 crisis and came out stronger and smarter.
Only Do Business With the Best
Here’s a taste of the things I look for in a developer:
- An instinct to be extra conservative…
- But creative and dynamic at the same time. They will be innovators, but only through a succession of small incremental changes.
- They need to put their customer first.
- They must show that they know how to make money…if not, the first puff of crisis will blow them over…
- They need to be able to see the bigger picture. Be comfortable with selling at a huge discount to RETA members in pursuit of a bigger agenda. Greedy developers won’t work.
- They must take a long-term perspective…picture how they would feel living in the community they are building themselves 10 years out…
- They must have a strong track record of delivering on their promises.
- And most of all, they need to be able to identify and lock down the best land cheap. This is often the key that unlocks a great RETA deal. If the developer moved fast and land banked early, it means they can pass more savings onto RETA members.
And that’s just the start…then there’s the reams of paperwork…are the permits there? If not, when will they be?
And if things still look promising it’s time to talk numbers. We need a special members-only deal that includes pre-launch pricing at a big discount to what the local market pays.
Because of the combined group-buying power of all Real Estate Trend Alert members, I’m able to negotiate serious discounts on retail pricing, like 10%, 20%, even 30% off, and more.
An off-market RETA-only deal must see us paying much less than anyone else, which means we’re locking in significant gains from the get-go.
By off-market I mean that we’re buying way in advance of the developer’s official wide-scale retail launch. Oftentimes you’ll find that local brokers and insiders aren’t even aware that RETA members are getting a deal, and when they find out they don’t believe the RETA-only price.
This has just happened in fact…
An Incredible Deal
Last Thursday I opened an incredible RETA-only deal in Playa del Carmen. And if you are one of the RETA members who reserved a condo in Sunrise at Corasol then a big congratulations.
It is a truly incredible deal.
In a nutshell…
- I negotiated a deal with a developer that saw RETA members get insanely low RETA-only pricing on a stunning new community within master-planned Corasol in Playa del Carmen.
- The best beach in Playa del Carmen is just a short stroll or golf-cart ride away…and Playa del Carmen’s Fifth Avenue with all its restaurants, cafés, clubs and bars comes close to Corasol’s second entrance.
- The amenities are out of this world and the golf course is a world-class Nick Price 18-hole course.
- The closest like-for-like comparison to what RETA members could buy in Corasol come close to $300,000 for one-bed condos and go from there—a two-bed condo will cost you from $427,444 to nearly $500,000.
- Our RETA-only price to own amid the fairways and lush landscaping? From just $192,800 for a luxurious two-bed condo with a spacious terrace.
- I figure within three years of delivery these condos will be worth $107,200 more than RETA members pay. That is $300,000. And I reckon a gross rental yield of over 12% is very achievable.
Walk into any real estate agent in Playa del Carmen tomorrow and tell them you got a two-bed condo of over 1,000 square feet for $192,800 at the heart of master-planned Corasol and—if they haven’t already heard about our RETA deal—they won’t believe you.
If they have heard about our RETA deal, well, they still won’t believe you. Or else they will have a lot of questions for you…
“What is RETA? Who are these guys? How the hell did they get a deal like that?”
These local agents like to think they are the insiders. It’s understandable that news we’ve bought up luxury condos in a stunning community before they even got wind of it alarms them…
They know just how incredibly high-end Corasol is…it’s a premier master-planned community in a totally amazing location.
And they know you just shouldn’t be able to get in for as crazy-low a price as $192,800.
After all…no one else is, just RETA members.
Master-Planned, Scarce, Protected
I keep repeating Corasol is “master planned.”
What’s so great about a master-planned community?
A master-planned community is essentially a large-scale residential neighborhood. They are carefully planned from the outset, unlike ordinary residential neighborhoods that can grow and develop in a chaotic fashion.
These communities have their own internal rules and regulations, in addition to any local planning and zoning laws. They often have recreational amenities, too—golf courses, beach clubs, restaurants, gyms, jogging trails. A master-planned community is initially controlled by the real estate developer, but, once it is established, control is handed to the homeowners.
When you buy best-in-class like this you protect your investment in three ways…
- Scarcity. There’s nothing else like this. Corasol is for the high-end market, a community where property is priced much higher than our price.
- It’s master-planned. That means strict adherence to the highest and most tasteful standards. The whole package of master-planned Corasol protects the value of every community within.
- There’s no land for anything new like Corasol. If there was land for a master-planned community of this caliber it would likely cost a huge amount. I estimate a developer would need $300 million for the land alone.
If there’s one way to protect the value of your home…and save your sanity…it’s buying in a master-planned community.
And what about the developer of Sunrise at Corasol? Let’s remember those things I look for in a developer…
- An instinct to be extra conservative.
The developer behind Sunrise at Corasol is a family-run business who have been around for over 30 years.
- As well as conservative…also creative and dynamic at the same time. They will be innovators, but only through a succession of small incremental changes.
Just looking at the plans of Sunrise, where RETA have their opportunity to buy from just $192,800, you can see how the developer goes above and beyond. Their track record shows a methodical approach to innovation and creative design.
- They need to put their customer first.
The guys we are dealing with at Sunrise have been partners of Walmart for almost their entire 30 years. And if you can stay ahead of Walmart and do business with them for that long then you know the value of delivering over and above what you’ve promised.
- They must show that they know how to make money…if not, the first puff of crisis will blow them over…
Like I say, the developer behind our latest RETA-only deal has been successfully doing business for over three decades. They have seen more than one crisis and navigated them all.
And to successfully do business with Walmart for that long is commendable. Walmart are the kind of outfit that could tear you up in a deal. But Walmart know a land-buying specialist when they find one…
- They need to be able to see the bigger picture. Be comfortable with selling at a huge discount to RETA members in pursuit of a bigger agenda. Greedy developers won’t work.
The developer at Sunrise knows the value of sales momentum which is why he and his group are smart enough to do a deal with RETA. They appreciate what our group brings to the table in terms of buying power and they are giving us our phenomenal price and exclusive financing to get it.
- They must take a long-term perspective…picture how they would feel living in the community they are building themselves 10 years out…
At Sunrise, the developer prioritized space, amenities, and liveability. The RETA-only price of $192,800 gets members a luxurious two-bed condo with a spacious terrace. We’re talking 889 square feet internal and 193.75 square feet external. That’s a lot of room for friends, barbecues, family get-togethers…reclining with a glass of wine and a book…
Plans call for three pools at Sunrise amid 2 acres of gardens. A state-of-the-art gym, community spa, tennis or basketball courts…there are plans for dedicated yoga and meditation space and co-working space too.
- They must have a strong track record of delivering on their promises.
Like I say, longevity is everything in this industry. The developer at Sunrise has 30 years real estate development experience in the area, plus a personal passion for creating world class golf communities—including his own super exclusive golf community in his home town of Puebla.
- And most of all, they need to be able to identify and lock down the best land cheap. This is often the key that unlocks a great RETA deal. If the developer moved fast and land banked early, it means they can pass more savings onto RETA members.
The developer we’re dealing with got a superb deal on the land for Sunrise. Other developers tried and failed…but the developer we’re dealing with got it done. Getting the land for a steal is why he and his group can afford to pass RETA such a low price.
I’ve enjoyed writing to you today. If you have questions for me about how I evaluate potential RETA deals and you’re interested in joining my group and hearing about off market deals then drop me a line.
Wishing you good real estate investing,
|
|
Ronan McMahon, Real Estate Trend Alert
Your Comments and QuestionsDory says: Hi Ronan, I’ve been a member this last year and have enjoyed reading about all the developments that have taken place in RETA. I’ve been dreaming…thinking, but still have a ways to go (46 months +/-) before retirement. A long ways to go, to be honest. Mainly for this reason, I’m declining the renewal membership but plan to pick it back up when I get closer to the countdown. (I also don’t have the funds to put into real estate right now which is a huge setback). Also, the laws may change for us here in the U.S. under the current admin. I have however, recommended you to several people, who are now retired, searching for places “elsewhere” in the world besides U.S. Frankly, am rather interested in searching out a certain country—you may be familiar with it—Ireland! ? Having primarily Irish ancestry, I plan to visit when this Covid business calms down. First point of “ancestral” reference would be the Sperrin Mountains. If you have any suggestions on where to start this escapade (or could at least recommend the appropriate pub crawl to get there)—if not too much trouble or time consuming—it would be most appreciated! Meanwhile, I continue to dig up my roots digitally here and do further investigating. Best wishes for 2021 for you and RETA. Stay healthy! ☘️ Ronan says: Hi Dory. If you’re looking for a second passport, the ancestral route is a great way to go. You can attain Irish citizenship if one of your grandparents was born in Ireland or if they were a citizen at the time of your birth. One important thing to note is that the route to citizenship in Northern Ireland—as opposed to the Republic of Ireland—may be different. The Sperrin Mountains are in Northern Ireland, which is in the U.K., which is now no longer part of the EU. I’d need to study up on the implications of this, but as far as I know, in the U.K. you can only qualify for Citizenship by Descent if you have a parent who was a citizen of that country. However, Northern Ireland might have different rules—as it often does, due to the complex status of the country. In any case, I wish you success on your search! Connect with Ronan on Instagram |
