Why your Cancun Beachfront Condo will produce cash flow that will likely pay for itself in about 10 years or less.

EXAMPLE CONDOMINIUM RETURN ON INVESTMENT
Initial cost of property		$	94,000 USD
Property description: 1-bedroom beachfront Cancun condo
Closing costs (approximately 6%)		$	6,000 USD
Total initial investment		$	100,000 USD
Overhead
Total annual taxes (Beach + Federal)		$	600.00 USD
Condo maintenance fee (monthly x 12)		$	3000.00 USD
Trust Fee (annual)		$	700.00 USD
Electricity (annual)		$	900.00 USD
Insurance (annual)		$	800.00 USD
Total Overhead		$	6,000 USD
Estimated Rental Income
Daily Rental High Season (Dec- May)		$	80 USD
Weekly Rate Minimum $500 Net
Daily Rental Low Season (June-Nov)		$	65 USD
Weekly Rate Minimum $400 Net
Average of High and Low Season Income $500/week net
Estimated Rental Occupancy 70% (rates have run 80%+year)
70% of 52 weeks = 36 weeks
Estimated 36 weeks x $500 week		$	18,000 USD

My background is engineering. Engineers tend to be conservative and look at the worst case scenarios; rather than having net rental income of $18,000 lets say you have income of $16,000 USD. In this case you are left with $10,000 USD after paying off your operating expenses and you still have 4 months a year to use your property. Add to this cash flow the fact that there are a deficiency in the number of Cancun Beachfront condos and the fact that new Beach Front properties start at $300,000 USD and it is easy to see that you have a very good
investment with little risk. Any loan interest you pay on your Cancun property qualifies for a US Income Tax Deduction just like a 2nd. home deduction.

Can I guarantee that your rental income will be exactly this? -no. Is this the right investment for everyone? -Of course not. Wise persons know there are few certainties in life-besides taxes and death.

This financial model is based on past rental history and Cancun's undeniable allure.
Wise investors know that income producing real estate in a highly desirable location is solid foundation for an investment plan.

Few predicted the disaster of 9-11. It is a fact that world travel decreased immediately following this horrible act of mass murder. The US recovered and international travel recovered. Is there a safer place than the Caribbean from terrorism? I don't think so. I pray that all terrorists will be stopped and that the entire world will be free of this madness.

Until that time come and enjoy the peace, tranquility and security of this Caribbean paradise. This is not only a good financial investment but an investment in the quality of your life.

Cancun beachfront condominiums will predictably produce a positive cash flow for you because:

01. Cancun is one the most traveled beach destinations in the world .

02. Cancun and Playa are the fastest growing areas in the world. Cancun in less than 3.5 hours from most US cities. Cancun has a modern health system that accepts US health insurance.

03. Cancun has incomparable natural beauty, the Best Beaches, Clubs, Hotels, and Restaurants.

04. Their are more activities and places to explore in the Cancun area. The Mayans built one many ancient cities and pyramids in the area. In fact the largest pyramid outside of Egypt is located in the Cancun area.

05. Cancun is the gate way to many other nearby Caribbean places of interest. Playa del Carmen is 40 miles south, Tulum is 50 miles, Belize is a 5 hour drive. The entire Western Caribbean Island Chain and Cuba are a short plane trip away.

06. Cancun will most likely offer Casino Gambling very soon. When this happens expect the local condominiums to instantly increase in value. Yes even more people will travel to Cancun.

07. I believe a 10% appreciation rate is conservative. With 65 million Americans retiring and many buying in Cancun, they will soon push Cancun prices to US prices of comparable properties. If this happens the actual appreciation rate would be more like 25-40% over the next few years.

Like any investment don't take my word alone. Read a book on International Property Investments, a read book on trend's of the 'Baby Boomers' and of course consult your tax accountant, who probably knows nothing about International Property Investments, but is a disclaimer I need to make. You don't have to be a Genius like Warren Buffett to make money. Follow the leaders like Citibank, Ford, Gm, HP, Hyatt, Marriot and the smart US citizens who have been investing in Cancun and Playa.

Hope to see you there. We count our clients as friends and business associates.