Big Investment? Small Investment? Expert? Novice? Mexican Real Estate Bank Trusts offer real investment solutions


Private Real Estate Investment Trust in Mexico?


There are many people who want to invest, develop, buy properties for rentals, or start a business in Mexico now, Why? Because the Rocky Point market has weathered the difficulties in the United States housing market and is poised for significant growth in the mid-term.

But many investors don't feel they have the expertise to succeed, are afraid to take a risk, or do have not the liquidity they would like to catch the wave of this region at this time because, in fact, these are less liquid times than in the past. Maybe you think you don't have enough liquidity to move forward at this time (even though you know this is the right time to move forward...) then a Real Estate Investment Trust is the solution.

The structure of a Mexican real estate bank trust can accommodate multiple members. These trusts can range from a simple multiple-member real estate bank trust designed to hold one or a small number of properties -- where it is a very efficient way to pool the resources of several smaller investors -- to a Great Real Estate Investment Bank Trust that enables larger investment groups and larger investors to realize the largest real estate investment and development goals.

But first, a few brief thoughts about the bank trust mechanism itself.

A bank trust in Mexico is very different to a trust in the United States. First of all, only an approved bank can be trustee. Banks are regulated by the government and audited regularly. The trust is recorded at the public registry; the assets of the Trust are recorded at the public registry. Trust property is not part of the bank's assets and cannot be subject to bankruptcy, lien, or attached to bank obligations. In a properly structured acquisition title is actually reviewed by four parties: a title verification and processing company such as Stewart Title, realtors (possibly two, if the listing and selling brokerages are different); a notario; and the bank. In addition, the title should be insured by an United States-based title insurance company -- offering a fifth review of the title, and the priceless peace of mind that insurance brings.

Simply stated, for over 39 years these trusts have proved themselves a secure mechanism for the more than a million and a half Americans and Canadians who are now enjoying the lifestyle and financial benefits of Mexican real estate ownership.

Mexican real estate bank trusts are highly adaptable mechanisms that can allow groups of investors to pool their resources.

How does this work? It's nothing complicated... the idea is to help a group of investors or to form an investors pool -- with small or large amounts of money -- to pool their resources for purposes of investing in Mexican real estate: like a mutual fund in the stock market or a REIT (Real Estate Investment Trust) in the United States.

How does it work?

1) An administration and investment trust is formed by an expert real estate advisor, a legal team, and with a specialized bank -- even better when it is an International Bank.

2) Investors join the bank trust by making deposits and receiving a certificate to back up the investment. That certificate is fully transferable, and can be transferred at any time allowing rapid exit for those who want to cash profits or need liquidity.

3) The bank trust is managed by a technical committee where all the investors are represented, and are advised by a realtor, an attorney, a market specialist, and a bank member. This technical committee instructs the bank how to invest the funds.

4) The technical committee forms a properties portfolio that can be for rentals only, land or condos speculation only, development only, or a combination of the all of them, depending on the main interest of the group, or a specific preconceived project.

5) The bank trust buys the properties selected by the technical committee and advisors and manage the properties within a pre-approved business plan.

6) Rental income -- and / or revenue generated by sales or trades of properties -- are deposited in the bank trust account generating interest, or invested in money market or stock market mutual funds (either in Mexico or the United States), or are reinvested in the acquisition of new properties for the trust.

7) At the end of the bank trust life (3 years, 5 years, 10 years, or 50 years as was decided at at the formation of the trust) properties are sold and assets and revenues distributed among investors.

Are these trusts only useful when buying property along the coast within the "restricted zone"? -- No! In fact these trust can be the perfect vehicle for groups of investors who wish to acquire real estate OUTSIDE the "restricted zone" on a fee simple basis.

Are real estate companies or developments currently using this structure? -- Yes. In Rocky Point there are companies operating with this kind of structure, or something different in its structure but similar in its results, like multi-fractional ownership.

How much do I need to invest? -- That would depend on the goals of the trust (to start a development? a Condo tower? create a pool of rental properties? buy land to build spec homes?). On the other hand, if you want to start small the initial investment can be as modest as you and your group chooses (for example: a single rental property, a single lot for speculation or construction, etc.) and there are a number of participants in the trust, the individual initial contributions can be made quite small.

We are always interested in helping investment groups pursue their real restate investment goals in Mexico, and offer a number of solutions to make your dreams and investments a solid reality.

Residential, Resort, Commercial, Development, Hospitality, IRA 401k investment pool .... you name it, any kind of Real Estate Investment fits under this structure.

If you are interested in a property in Playa del Carmen, Merida, The Mayan Riviera, Acapulco, Mexico City, San Miguel de Allende, Ixtapa - Zihuatanejo, Costa Alegre, Melaque, Tomatlan, Puerto Vallarta, Bucerias, Nuevo Vallarta, Costa Banderas, Punta de Mita, Sayulita, Puerto Penasco or Los Cabos, we are your real estate solution center.

Please contact us -- if there is additional information you would like regarding this efficient and inexpensive group investment mechanism!

In Mexico Luxury Properties we really know what we are doing.


Mexico Luxury Properties

MEXICO LUXURY PROPERTIES has several financing sources for your Mexico Dream Home.

We are not only listing and selling Real Estate in Mexico. We provide Real Estate Solutions in Mexico. Each Buyer and Seller is unique and different. We do understand, that is why we offer the solution you need.

There are several private funds and banks willing to lend to Non Mexicans Buying Real Estate in Mexico.

If you are interested in any of our listings contact us now, go to our contact page, we can help.

In Mexico Luxury Properties we really know what we are doing.

Real Estate Investment in the Mexico Luxury Properties market now is better than ever, prices have been reduced due to the global financial crisis and other market factors. An example are those buyers who decided in bonanza times to buy Luxury Properties in the USA or anywhere else, but in these difficult economic times are being forced to sell.

On the buyer side what is happening is that either buyers have the money to buy and invest in their dream house in Mexico, they are just waiting with the expectation to see prices drop even more, or their investment capacity is not the same and feel their are loosing the opportunity to make that investment now looks better than ever.

If you are in the third group I just mentioned above you must seriously consider a Fractional or Multi-Fractional Structure which allows you to make a syndicated offer in any property you like and is currently in the market.

You can either look for a property for rental, for your own use that is currently been sold in fractions ( There are not too many of them ), or your best and more flexible choice is to follow this plan:

1.- Organize a little investment fund with your best friends or family and decide how much each one of you can contribute for that Mansion, Beach House, Villa, Hacienda, Penthouse, Golf Property or Condo you want to buy.

2.- Make a business plan about what will be the use of the property, what is the time that each one of the partners will have the right to use or rent the property. Discuss expense share like maintenance, management, taxes, etc..

3.- Contact Mexico Luxury Properties who will do all the work for you: We'll coordinate the incorporation of an USA entity for you, We'll Prepare an offer for you, We'll represent you in the closing, We'll supervise that the closing is smooth, that the title is issued having your Foreign Corporation as a sole owner.

In few words, MEXICO LUXURY PROPERTIES has the knowledge and experience to make your investment come true, just choose the property you want to buy, choose your partners and the rest will be in our hands.

In Mexico Luxury Properties we really know what we are doing.


Mexico Luxury Properties