Owning a vacation home in Cabo is like a dream come true
There are several creative options to take advantage of the Market when you find that perfect vacation home. When you take ownership you can purchase the property as an entity (LLC), or as an individual in which you are the beneficiary of the bank trust.
Most properties in Los Cabos are purchased with a Cash Investment.
However, seller financing is an option on specific properties with 40-60% down, 10-20 year amortization at 5-8%, with a balloon due in 12-36 months with no prepayment penalties. Traditional mortgage financing is now available for US citizens on properties meeting certain criteria. However, it can be expensive and buyers typically prefer seller financing.
A bank trust that allows foreign citizens to purchase coastal property within designated regions of Mexico, an instrument commonly used for non-Mexican nationals, such as U.S. citizens and Canadians.
How it works
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 qualified owner.