RETA

Real Estate Trend Alert

By Ronan McMahon

Punta Laguna: The Short Version

by Ronan McMahon

REAL ESTATE TREND ALERT
(FOR MEMBERS ONLY)

Wednesday, November 16, 2022

Dear Reader,

In advance of our Punta Laguna deal opening tomorrow at 1 p.m. ET I thought you’d appreciate an executive summary. We’ve had a lot to process over the past week…in this short alert I lay it all out as concisely as I can for the time-pressed among us.

This summary might be handy to help explain this deal to a family member or friend as well. Feel free to email it on.

Upfront, I’m buying alongside RETA members. Here’s why: 

Punta Laguna: The Key Points

  • Corasol is a near 500-acre master-planned community on the edge of booming Playa del Carmen on Mexico’s Riviera Maya.
  • Corasol is unique. It has world-class golf, the best beach in Playa, and the city’s famed walking street, 5th Avenue ends right at the side gates.
  • It’s fast becoming a $500,000-plus community of the discerning and wealthy. For example, in the Village at Corasol the lowest price available right now is for a two-bed condo listing for $467,883.
  • Prices in the closest comparable master-planned communities in Playa del Carmen for two-bed condos start at well over $800,000. I’ve seen one-beds selling for more than $620,000.
  • My team and I looked all over the world for master-planned communities that had attributes like Corasol. None have all three pillars—world-class golf, a stunning beach, AND a vibrant city on the doorstep. And only Corasol has such incredible access to a massive pool of renters. Millions of people visit Playa and every year it’s more.

    Of those communities globally that have golf and/or beachfront you would pay well in excess of $500,000…into the millions of dollars…to get in. For example, Eagle Beach in Aruba has a golf course and a beach, and the best price my team could find is $700,000 for a two-bed condo.

Drum Roll! Our No-Brainer Price

  • Yet, our RETA price for a two-bed, two-bath condo in Punta Laguna at Corasol is from $228,600 to $266,800 and we have a handful of other condos available at no brainer RETA pricing as well. (Just ask about those when you speak with your advisor.)
  • It’s thanks to our group buying power and our connections.
  • The developer behind Corasol got a great deal on the land so can afford to cut us an incredible deal.
  • This developer is fast realizing their vision for Corasol to be the most exclusive and high-end community in the region. They have deep pockets, and are part of a Mexican business empire that owns a bank, TV station, internet company, department stores…you get the idea.
  • Within master-planned Corasol homes list for well over a $1 million…the few that are left.
  • Scarcity is very real. When I looked at the latest lists for available inventory in the other communities within Corasol there was almost nothing left compared to only three months ago.
  • And absolutely nothing at all at our no brainer RETA Nor do I believe there ever will be again.
  • Plus, we have 10-year financing available…ask your advisor for the details.

Income and BIG Gains

  • There’s no off-season in Playa del Carmen anymore. Just different speeds of high season. You have young families relocating, vacationers, retirees…remote workers…millions are coming.
  • Your Punta Laguna condo will be in massive demand, appealing to all these markets. Plus, you have rental management options for a hands off solution.
  • Short term an average rate of $200 a night is an absolute steal for the renter but let’s be conservative and use it, and estimate a very modest 50% occupancy. That equals $36,500 in income a year.
  • That’s a gross yield of 16%, once you’ve built up reviews, referrals and repeat guests. (And you’d get to spend a lot of time enjoying your condo too…or gifting a stay to friends and family.)
  • Rent long-term to one of the many retirees, digital nomads, work-from-anywhere families and I think $2,200 a month is fair, and conservative. It adds up to a gross annual yield of 11.5%.
  • As for capital appreciation, I expect us to see gains of $141,400 three years after delivery.

That’s our Punta Laguna deal in a nutshell.

Personally, I’m really looking forward to spending time in Punta Laguna. You really ought to take the time to look through the developer’s renders and see what they have planned for the exceptional amenities. That’s in my full deal briefing.

Wishing you good real estate investing,

Ronan

Ronan McMahon

P.S. If you scrolled to the end of this email to get the gist…then the shortest version possible: our Punta Laguna deal is unique, incredible and I’m buying. I had not planned to buy a condo in Punta Laguna. But, I can’t pass this one up! Everything I’ve learned about real estate investing over two decades and more tells me I’m on to a serious winner…especially in this era of scarcity.

To save you time looking through your emails for the videos, research and renders I sent you over the last week here’s a list: