|
Who's Who in Luxury Real Estate
Certified International Property Specialist
Resort & 2nd Home Property Specialist
San Jose del Cabo, BCS 23400
Cell Phone: 1-520-204-5450 US
|
|
Life's a beach....Live it in Los Cabos!
CHECK OUT MY PODCAST INTERVIEW. http://homeawaypodcast.com/2007/09/20/buying-an-investment-property-in-los-cabos-mexico.aspx
Here at the tip of Mexico's Baja Peninsula, the desert meets the sea at Land's End, where the blue Pacific collides with the Sea of Cortez. Stunning blue ocean, phenomenal beaches, iconic rock formations and weather described as "The best God will allow" have captured the imagination of travelers the world over. Indeed, Mexico's Baja Peninsula and Los Cabos has become an international destination for world-class golf, deep-sea fishing and yachting.
Cabo San Lucas is approximately 1000 miles south of Los Angeles on the southernmost tip of Baja California Sur, which separates the Pacific Ocean and the Sea of Cortez. Getting here is easy. Direct flights from Los Angeles, Phoenix, Houston and Dallas are two to two and a half hours from Los Cabos via service on major U.S. airlines. And the airport in Los Cabos boasts a state-of-the-art FBO to accommodate a variety of private air travel.
A Journey to Cabo 
A typical question I'm asked is about how I ended up selling real estate in Los Cabos. I started in real estate in Seattle-South King County with John L. Scott, and I frequently vacationed in Los Cabos for two reasons: 1) to get away from the cell phone and 2) to get a sunshine fix. I need sunshine!!!!
After visiting for a number of years, in 2000 I built a home in San Jose del Cabo, complete with U.S. financing and U.S. Title Insurance. I became affiliated with Prudential California Realty/Cabo Gold Division and accepted a position as Manager of their San Jose del Cabo branch. I served as President of the Los Cabos Multiple Listing Association as well as 2006 President of the Association of Mexican Real Estate Professionals (AMPI) in Los Cabos, the Mexican equivalent of the National Association of Realtors.
In addition, I was selected for a 2-person team to develop the new 40-hour Education Curriculum to be used by all members of the Los Cabos MLS. Since Mexico does not currently require licensing or certification for real estate agents, it is extremely important to work with an ethical and knowledgeable agent.
As one of four agents in Los Cabos with the prestigious designations of “Certified International Property Specialist” and "Resort and Second-Home Property Specialist", from the National Association of Realtors, as well as holding the TransNational Referral Certification from the International Consortium of Real Estate Associations (ICREA) and a member of FIABCI, the International Real Estate Federation, I work closely with other Realtors on a global basis. Recently, I was invited to join "Who's Who in Luxury Real Estate", and in November 2007 was notified that I received the "Master of Real Estate" designation from the State of Arizona.
My affiliations also include the International Resort Symposium, and the Women’s Council of Realtors. Working with Realtors on an International basis allows me to expand my market area to reach clients in all parts of the world.
 PROPERTY OWNERSHIP IN MEXICO
In 1972 the government of Mexico initiated a legal process of entitlement to protect foreigners known as the Fideicomiso. Simply put, the government issues a permit to the Federally Chartered Bank of your choice. This allows the bank to hold title to the real estate as the "Trustee" for you, the "Beneficiary". The law authorizes Mexican banking institutions as trustees to take instructions only from the beneficiary of the fideicomiso (the foreign purchaser). The beneficiary has the right to occupy, develop, improve, mortgage, and enjoy the property. The beneficiary may also will or sell the rights and instruct the trustee to transfer title to a qualified owner. In 1993, the term of the Fideicomiso was extended to 50 years, with renewable periods. The renewal must be applied for within this 50 year term. This renewal process can be continued indefinitely, providing for long-term control of the asset. Thousands of people from countries around the world own real estate in many parts of Mexico.
FINANCING VACATION HOMES
U.S. Mortgage companies have just recently started offering mortgages to U.S. Citizens buying 2nd homes in Mexico. It is a good idea to get pre-qualified prior to visiting Mexico. Currently, if a buyer is successful in obtaining a loan for property in Mexico, they will be rewarded with a Form 1099 Mortgage Interest Statement for use as a deduction on their U.S. Federal Income Tax. Seller financing is another means of obtaining a vacation home. Sellers often own properties free and clear, and appreciate the benefits of a long term payout with a higher interest rate than they may obtain on a traditional investment. Obtaining a credit report adds to the seller's peace of mind. Often, an uninvolved third party collects, records and distributes the funds, and holds the necessary title documents. Fractional Ownership, for instance with another family, is another option. A carefully worded contract with explicit shared-use and property-disposal clauses is an absolute necessity. Finally, a home equity loan, on the buyer's primary dwelling, is often the easiest, and most affordable way to obtain the necessary funds to purchase a vacation home. In addition, a Form 1099 is usually provided. These are just a few examples of fairly typical financing arrangements. Creative financing arrangements are best left to a finance professional, and as always, it is best to consult an accountant and attorney to verify the appropriateness of the transaction.
  
|
|
