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Owning Real Estate in Los Cabos


The majority of properties in Los Cabos are purchased with a Cash Investment. However, there are several creative options to take advantage of the Market when you find that perfect vacation home. These 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), Developer Financing on select properties, and Conventional Long-term Financing for qualified Buyers.

Owning Real Estate in Los Cabos is like a dream come true. However, there are some important statutes in place foreign citizens must be aware of before they can move into their new Baja home. Land ownership has a long history in Mexico dating all the way back to the 1500s. Understanding the history of Mexican land will go a long way in comprehending the country’s current regulations on foreign ownership of its valuable real estate. Today, foreign citizens must hold title to real estate assets in certain regions of Mexico along the coast and border through a bank-held trust, very similar to a living trust in the United States.

Mexican property ownership by foreign citizens: Mexican Property Trusts (Fideicomiso). Foreign citizens who wish to purchase property within designated regions of Mexico are required to obtain a “Fideicomiso,” which functions as a Mexican Property Trust which many wealthy Mexicans use as an estate planning tool. A “Fideicomiso” is a Mexican Trust. The way it works is the Mexican Government issues a permit to a Mexican Bank of your choice, allowing the bank to act as the purchaser for the property. The bank acts as the “Trustee” for the Trust and you are the ” Beneficiary ” of the Trust. The Beneficiary” rights are very similar to Living Wills or Estate Trusts in the U.S. A trustee takes instructions only from the Beneficiary of the trust (the foreign purchaser). The Beneficiary has the right to use, occupy and possess the property, including the right to build on it or otherwise improve it. The Beneficiary may also sell the rights and instruct the trustee to transfer title to a quailed owner.