That's why you'll never catch one hard earned dime of mine in any property venture down there. The Mexican gov't is so corrupt, even the local business owners have to set aside some of their earnings to pay them off so they stay off their backs.
Anything goes in Mexico, and there isn't a darn thing anyone can do about it. I think a lot of Americans think it's pretty harmless down there, but they are far from right. Unless you can bribe your way thorugh, you really are taking a gamble with your investments...and you'll most likely be on the losing end.
You are right about Mexico being dangerous. I would not dare go there. There was a story about a year ago where an American teacher went there to teach the Mexican kids, and had his friends here in CA to donate money. The money was stolen by a Mexican aide and the teacher was accused of molesting the kids, and ended up in jail in Mexico for seven years. He got out last year.
That is only one story, there are more.