Owning a Vacation Home in Cabo is a Dream Come True

Fideicomiso

A “Fideicomiso” is 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.

 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.

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.

Purchase Options

There are several creative options to take advantage of the Market when you find that perfect vacation home.  Cash remains the most effective way to negotiate the best price possible and the majority of properties in Los Cabos are purchased with a Cash Investment.

Creative Seller Financing through a guarenteed trust is a great option available on specific properties. Many Sellers are open to offers with 50-60% down, 10-20 year amortization at 5-8% interest rates with balloon payments due in 12-36 months with no prepayment penalties.  Inquire with us for information about Seller Financing.

Financing is now available for US citizens with excellent credit on cross-border residential transactions through an affordable loan program with a minimum of 40% down with fixed term rates up to 15 year mortgage.  Contact us if you have interest in getting prequalified for your Dream Home in Cabo.

Office Location

Alvaro Obregon # 1505
Gallery District
San José del Cabo, BCS 23400