Transparent Risks. Practical Mitigation.
RIIP operates in a complex and evolving market. While we are confident in the opportunity, we approach these risks with discipline, local expertise, and conservative planning.
Property Rights & Ejido Land
RISK
MITIGATION
Ejido (communal) land cannot be legally sold to private investors without proper regularization, creating ownership risk.
RIIP does not work within Ejido zones. We focus exclusively on existing industrial or commercial land suitable for conversion. All acquisitions undergo double legal diligence with established partners, including Cetina & Jimenez, Notaría 90, and Magallón Abogados.
Legal & Bureaucratic Complexity
RISK
MITIGATION
Real estate laws vary by state, and foreign investors must follow specific procedures, including fideicomiso (bank trust) requirements in restricted zones.
RIIP’s local experience, combined with long-standing legal and operational partners, allows us to navigate local laws, permitting processes, and regulatory requirements effectively.
Title & Ownership Fraud
RISK
MITIGATION
Unclear titles, double sales, or forged documentation can arise without proper diligence.
Title verification is conducted through multiple independent legal reviews and trusted notaries prior to acquisition.
Market Volatility
RISK
MITIGATION
The Mexican real estate market can be more volatile than established markets, potentially affecting returns.
While market timing cannot be predicted, the demand for industrial infrastructure in the region is urgent and structural. RIIP is confident that even within normal market fluctuations, these assets remain attractive over the investment horizon.
Security and Crime
RISK
MITIGATION
Certain regions in Mexico experience higher crime rates, which can impact property desirability and operations.
The Yucatán and Quintana Roo are among the safest regions in the country. The lack of major exportable goods limits organized crime activity. Additional measures, including private security where appropriate, will be implemented to protect investors, tenants, and assets.
Hurricane & Natural Disaster Risk
RISK
MITIGATION
Coastal regions, including Quintana Roo, are exposed to hurricanes and extreme weather events.
Buildings are designed and constructed above standard specifications, with natural disaster risk fully considered in engineering, materials, and insurance coverage.
Liquidity Constraints
RISK
MITIGATION
Real estate assets may require longer holding periods, particularly in niche markets.
RIIP’s investment horizon does not rely on short-term exits. The region continues to offer strong long-term appreciation, even if holding periods extend beyond five years.
Tax & Regulatory Changes
RISK
MITIGATION
Changes in tax laws, capital gains treatment, or rental regulations may affect returns.
All taxes are conservatively modeled, with assumptions designed to withstand regulatory shifts.
Property Management Challenges
RISK
MITIGATION
Managing assets from abroad can be operationally complex.
Local RIIP partners act as property managers and leverage a trusted network built over the last five years to ensure reliable operations.
Cost of Capital
RISK
MITIGATION
Mexico generally carries a higher cost of capital compared to the U.S. and other developed markets.
RIIP does not rely on institutional Mexican capital. When local capital is utilized, it is structured to offset tax disadvantages, making Mexican investors attractive strategic partners rather than a necessity.
Tariffs & Nearshoring Dynamics
RISK
MITIGATION
Increased tariffs could reduce U.S. manufacturing nearshoring into Mexico.
Large-scale manufacturing for U.S. export is unlikely to concentrate in this region due to logistics. However, information technology, services, and infrastructure-driven activity in the Yucatán are not materially impacted by tariffs and remain strong demand drivers.
Phase I is intentionally small and risk-averse, designed to demonstrate responsible stewardship and disciplined execution before scaling.
Despite our confidence in the opportunity, RIIP remains acutely aware of these risks. We intentionally over-budget and double down on diligence in critical areas, including title verification, insurance, land use permits, surveys, construction standards, and contractor selection.