Buying Real Estate in Los Cabos
The majority of properties in Los Cabos are purchased with a Cash Investment. However, there are several creative ways to take advantage of the Market when you ﬁnd that perfect vacation home. Creative Options include Seller Financing (Short and Long term with balloon payments), USA Self Directed IRA (Through Purchaser LLC), Purchaser Financing (Home Equity Loan and Investment Account Loan), and Global Mortgage with Conventional Long-term Financing.
Today, the buying process is much easier and better protected.
“Fideicomiso” or Bank Trust is the agreement or contract which is used to purchase property in Mexico. The Bank Trust is deﬁned for real estate purposes as a transaction between a Mexican bank and foreign individual or ﬁrm investing in areas otherwise restricted to foreign investment. The bank holds the title to the property in a trust for the beneﬁciary who retains the exclusive right to the use and control of the property. The trust is essentially a contractual arrangement which, in most respects, is identical to the type of trust commonly used in the United States.
Long gone are the days when foreigners could only lease land. Nowadays, buyers safely purchase properties through professional real estate agencies that use U.S. escrow companies, secure their investments with title insurance, and Trusts are established for initial 50-year period and can be renewed indeﬁnitely.