I posted earlier and didn’t get a response. Much of the investing from what I understand is paid off 100% when purchased in Mexico. We are looking for a financing company who will finance us in Mexico, under a corporation…not the trusts held by the Mexican banks. Please anyone with experience let me know!
Thanks,
Wendy
My husband and I are fairly new in the real estate investment field ( 1 yr.+). We are however doing fairly well (26 units) and managing for the time being to keep our “real” jobs. Our goals are to establish enough income through real estate for him to sell his business and for me to then sell my business as income allows. Of course the sale of our businesses will allow us more money to invest. We are early 40’s w/ three teenagers and three babies (5 and under). I tell you all of this so you can get an idea of our goals, short and long term. We live in Michigan and plan on having a summer retirement home here and a winter retirement home in Mexico. We will most likely rent out the Michigan home and most definetly rent out the Mexican home. Our obstacle has been that I can not locate a company that will lend on Mexican properties. We havn’t actively searched as of yet but the property values in the southern yucatan keep going up up up and we will need to seriously consider our purchase in the next year or so. The rental income in this area is outstanding and while it is seasonal, there is much more prime rental season than in Florida. I’m confident that we will be able to at least cover our cost.
Please let me know if you have any leads.
Because of the three little ones our southern move will be quite some time away but we are very familiar with the location and have vacationed there often. Our original interest was playa del carmen but it has grown too fast for us and is looking like a mini cancun. We are looking for a more secluded area, maybe somewhere around or south of tulum.
Thanks!
Wendy
HI
I don’t know much about the mexican financing, but wanted to know how you financed the 26 units? I seem to run across insurance and financing obstacles without quite that many even with good fico
Thanks :
Are you familiar with the property rights in Mexico? I ask because I am not familiar with them. Please someone clarify this for me. I was always under the impression that you cannot own property in Mexico unless you are a citizen of Mexico.
What gurantees do you have as a non-citizen that your property ownership will be protected?
Are you familiar with the property rights in Mexico?
carlittle.
You have to hold the property in trust. you as the beneficiary.
but one thing I’m not clear on is this. Does the bank have to be a Mexican bank who hold the trust?
Hi, our fico isn’t bad but isn’t great either probably mid 600’s. Our first unit was a single house–land contract w/ 5% down. Our second project was a 9 unit apt. building that came w/ a house. Again land contract with 25,000.00 down and another $15,000.00 due in 12 months then $10,000. due in 24 months. Our next was a cluster of properties on the same street, a duplex, house, triplex… same a land contract w/ nothing down but we made payments on the real estate commission and added $25,000. into our payments. Our next project was a seven unit w/ the same owner as the precious cluster and we put 10% down, seller holds a 20% note and the bank financed the rest. Our last is a three unit that we paid cash for at an auction. It needs alot of work but will be well worth it as the sev’s are already $40,000.
We have been lucky as all the owners we have worked w/ were retiring and able to hold some or all of the financing.
As for the insurance that has almost done us in, we pretty much were breaking even until I talked to the gentlman we bought the seven unit from. He suggested I lower my coverage to non-replacement. I did and it CUT MY PAYMENT IN HALF. Our buildings are mostly concrete so even in a fire their not going to totaly burn. Also ask your agent for special discounts. We get a reduction of 10% because I graduated from U of M. We get another 10% off because I agreed to join a local chamber of commerce.
We don’t have the financing thouh that is what I am trying to establish. I hope it isn’t somthing we have to pay cash for. We will be seriously looking for financing in a year to two, just beggining to poke around now, if you know of somthing please let me know.
U.s. banks are learly of lending to u.s. citizens on Mexican property because, its complicated, from what I understandthe property owner dosn’t actually own the property and can’t under the bank trust system, a mex. bank trust must hold the deed. UNLESS as a U.S. Citizen you open a Mex. corp. and then you can hold the deed in the corp. name. We plan to rent out our property so this would not be a problem and this way feels safer to me then having a bank or gov. own my property. Your mex. corp can also have inactivity for long periods of time. Even if you rent it out once a yr. you qualify, if its done under a corp.
Thanks guys for all the response this time!!!
I just wanted to add that with all of these properties we have been putting a lot of money back into them and with insurance and other costs sometimes we don’t make what most people would consider worth it. One month my husband said we didn’t make anything this month, I just laughed and said no we didn’t but on the other hand someone else is buying your retirement and our equity in these properties.
Of course once all the buildings are up to par we won’t have to put as much into them and we’ll see more money. And actually now that we’ve been through the first year and have made a lot of silly financial mistakes, we have learned what not to spend money on. Its all an education and we are continually learning. It is alot of fun.
Hope I answered your questions
Wendy
Here are two sites that lend US citizen money to buy properties in Mexico. I hope it helpful.
http://www.mrestates.com/finance_mex.html
http://www.playalastortugas.com/financing.htm
Thank you, i have saved them in my fav. places until I get a chance to further investigate. have you used either of them or know someone who has? if so what do you/they think.
To answer your question I have NOT used them as of yet, but from my research into mortgage lending, these two site would be were I would begin. Also you may want to look at this web site as well
http://www.mexonline.com/reagents.htm.
Good luck Henry_CA