May 13, 2025 • 31 mins
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V I D E O SÂ Â T OÂ Â W A T C HÂ Â N E X T :
Online Business Tips to Working and Traveling In Mexico: https://www.youtube.com/watch?v=9zGH0voCyOc&list=PLh3xKhkMgH_IA6s3KvB_g9Cc9Ze1eji8j&index=2
Moving to Mexico: 10 Reasons Why We Chose to Live in Guadalajara https://www.youtube.com/watch?v=dK23vD8_xjc&list=PLh3xKhkMgH_LAY7UV78YMgms-f2e1UcwN&index=23
Tips for Moving Overseas: Top 5 Remote Work Skills That Make Money: https://www.youtube.com/watch?v=bFzjCrlNAL8&list=PLh3xKhkMgH_IA6s3KvB_g9Cc9Ze1eji8j
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Welcome to the beautiful RioPlaza Hotel in Guadalajara,
(00:03):
Mexico.
We are here with Angie Ardi, whois one of our real estate
experts who works with us andour clients when we are helping
them relocate to Mexico.
And we are starting a serieswhere we're going to be
answering all of the real estatequestions that you guys have
been sending us.
So first of all, thank you toAngie.
For being here, helping us withour clients and also doing these
(00:26):
videos for us.
And if you are interested inmore content like this, then
make sure to subscribe and hitthe notification bell because on
Entrepreneur Expat, we talkabout how to make money online
so you can go anywhere in theworld.
We talk about foreigninvestments and international
investments like real estate,which is what we're going to be
talking about today.
(00:46):
And we talk about how to live inother countries.
As American, Canadian, orEuropean, or we've got a lot of
Australians watching us, too.
Expats.
And if you listen to this seriesand you need help with real
estate in Mexico, then sign upfor a relocation consultation
below entrepreneurexpat.com/consult.
(01:07):
And Justin and I can help you.
Angie can help you.
We know Mexico's a very bigcountry that's got something for
everyone and we can help youfind your perfect.
Place here.
So let's get into to thesequestions.
The first video that we're goingto be doing is the question that
we get asked the most, okay?
Which is, can foreigners buyproperty in Mexico?
(01:31):
There seems to be confusion overthis, so.
What?
What's the skinny Angie?
Can foreigners buy property inMexico?
Okay.
I guess that it could be a doubtabout it because in the
Constitution it says that Arancannot owner the land, but in
the law, they also have a placewhere they say that you can have
(01:54):
the right.
Of use the land.
Okay.
So it's about a process that isthe trust that we call it.
Mm-hmm.
That you can use and be part ofthe cell situation.
So that's the way you can own.
Or use the land as the way youneed it.
Yes.
So, uh, those of you who arewatching this video, you may be
(02:16):
familiar with this actually,it's kind of called a freehold
lease, which is an oxymoron.
The two don't really gotogether.
But for example, those of youwho are interested in Thailand
or Southeast Asia, you're goingto be very familiar with this
concept because in Thailand, uh,it's a similar concept of, uh.
The A Thai person.
A Thai citizen needs to be atleast 51% owner of any building.
(02:41):
Mm-hmm.
Or property in Thailand.
But in Mexico, it's a little bitdifferent from my understanding,
because it's only in certainareas where a foreigner would
not be able to own the land.
Correct.
They call it the restrictedarea.
So it's near to the coast, nearto the beach.
All those places that you couldfind a condo in Tuo or Cancun or
(03:03):
ba Los Cabo, all those areincluded.
That is the touristic areas thatwe have, yes.
Okay.
It's a third party situation.
It's where the, let's say aninstitution like a bank, it's
gonna hold the resources or keepthe money until everything is
like, uh, in the follow flowfollowing process.
That you have all the documentsand the everything is complete
(03:25):
and you can actually like, uh,complete the, the sale or the
buying part.
Okay.
Yeah.
So with the, uh, FISOspecifically, we're talking
about coastlines.
I think I heard mountains aswell, or some mountain areas.
Possibly, like if there'stouristy or something like that,
it should be like around 50 anda hundred kilometers.
Inside of the territory.
(03:46):
Okay.
Or yeah, between the land.
Yeah.
So in that case, right, um,basically what a freehold lease
is, for example, uh, you, youlease the land, so the land that
the property is on, because thatneeds to be owned by Mexico.
Mm-hmm.
Or a Mexican citizen.
Mm-hmm.
Um, but you have the freeholdrights.
(04:07):
Uh, to the property.
Meaning although you are leasingthe land, and correct me if I'm
wrong, although you are leasingthe land, you can renovate the
property, you can rent out theproperty, you can sell it later
if you so choose.
Is that kind of how it works?
You are allowed to do all ofthat.
I mean, you have the right touse it.
You, you have the right to doany modulation.
(04:29):
Also the selling part.
And the thing is that when youget the coo, it's gonna be ba
ballot for 50 years.
And you, when that finish, youhave the right to renovate it.
So the only thing is you'regonna be paying a fee that it's
every year, uh, and keep it,keep the payment fee for every
year, and at the end of the 50years, you can renovate it.
(04:52):
So as long as you're planning tobe here or have a loan term stay
in Mexico, it's the right way todo it.
Okay.
So the lease is for 50 years andthen at the 50 year mark you can
renew it.
Yeah.
So who is a fiso Good for?
And who is it not good for?
Because, uh, before we, we weresharing a drink upstairs at the
rooftop bar.
We'll add some B-roll for youguys.
(05:13):
'cause it's stunning.
Yes.
Get great views of the city.
But you were mentioning how thisarrangement of a, a fi miso on
the coastline and things likethat makes sense for certain
buyers and investors, but notothers.
I mean, it will, it's gonna beneeded for all of the terrains.
Mm-hmm.
Mostly, uh, US citizens andCanadians.
(05:34):
That's the most.
Often are common that we have, Imean, there certain changes
every day, you know, becauseit's more people from Europe or
even Asia or Australia that youmentioned it, uh, interested in
coming.
So I guess it's gonna be openfor more experts.
But for now it's mostly for us,citizen and Canadians.
(05:55):
And the thing is like as theworld is changing, we don't
know.
Maybe you just wanna come andexplore and see if it's working
for you.
And it has.
Everything you need or not.
So I guess it depends on thestage that you are planning,
just like to see if it works foryou or if, uh, or if it's a long
term, you can already like thinkabout having a land, right?
(06:17):
Or buying a property here.
Yeah.
So for example, if somebody'smore internationalized, like
we'll have some clientssometimes who have multiple
citizenships and then they wantto, uh, have a footprint in
Mexico, but they don'tnecessarily wanna live in
Mexico.
Mm-hmm.
Uh, so in that case, maybe a, aor a a, the freehold lease or
(06:37):
that restricted zone doesn'tnecessarily make sense if
they're not really gonna behere.
But what if they were going torent it out?
I mean, it's the normal process.
Yeah.
If you want to rent or buy ahouse.
And the other thing that I wannamention it is like, there are
people coming here that theyalready doing the migration
part.
Yeah.
So if you have a permanentresidency, it could apply for
(07:01):
other things.
Right.
But maybe you just wanna rent ahouse.
So it will be the normalprocess.
Even if you are looking for aplace to buy, you'll need to
know where do you wanna buy?
Mm-hmm.
Or rent.
How do you want the place to be?
Like how many bedrooms or uh,restrooms or two floors or
whatever.
And the other part is if you areready to pay for that, I mean,
(07:24):
in the case of the rent, it'sthe normal process is you have
to make one month for the rentand one deposit.
And also have the, an extradeposit or a person that it's
gonna warranty that you will bepaid theor.
Yeah, yeah.
Also known as the, the val.
There are ways Val, or yeah,there are legal ways around
that.
So our team can help you withthat because we certainly did
(07:47):
not have an val and we had to dolike an alternative contract.
Exactly.
So there's ways around it.
I know sometimes people see theguarantor thing and they're like
whacked and a lot of countries,um, ask for that.
But in Mexico, there is a way torent.
Even if you do not have aguarantor.
But going back to the investor,like let's say an investor wants
to.
Um, get a, a property in arestricted zone where they would
(08:10):
need a, a fee, a or a uh,freehold lease.
Um, for those who are lookingfor the English term, um, if
they decide to,'cause they'reallowed to rent out that
property to a tenant.
Correct.
So there's no restriction onthem being able to do that?
No, there is not.
So if they're planning on beingin other countries, but they're
renting out that property toanother tenant, if, does that
(08:32):
arrangement make sense?
It does.
Yes, it does.
Even if they're paying that feeevery year.
Yeah.
Yeah.
I think sense think it is a verydifferent, like things Yeah.
That we're talking.
Yeah.
So it's a lot.
Yeah.
Okay.
So basically just run thenumbers, see if everything makes
sense, work with a team to makesure the numbers make sense.
Okay.
So outside of the restrictedzone, so away from the
(08:52):
coastlines, away from the.
The more touristy areas wherethey do put more restrictions on
whether or not foreigners canpurchase, um, what is that
process like?
Because in that case, you don'tneed a, a fiso outside of the
restricted zone.
Mm.
I think we can check that withsomeone that it's actually
specialized in the fiso, becauseI have the, the clue that you
(09:17):
need it.
It doesn't matter where.
Mm-hmm.
But you need the, if you areafraid.
In Mexico.
That's the only thing.
But as you see in the law or theconstitution part, it says that
you can own the right.
So maybe in that case,'causewe've heard, we've had people
buy properties or we've heard ofpeople just buying properties
(09:38):
outright outside of therestricted zone.
But this is one of the thingsgoing on with Mexico right now
is there's so many systemschanges going on in Mexico right
now.
Yeah.
Um, that, you know, in one areayou might need it in one area.
They, you might not, thequalifications might change from
one day to the next.
So.
It's very important for you guyswho are watching to really work
(09:59):
with a team.
Because right now things are, toyour point, there's so many
people coming to Mexico rightnow that it's like Mexico has to
adjust its systems.
Exactly.
Yeah.
As all these people are comingin, which we understand having
run businesses, you have toadjust systems as people, um,
are, uh, coming in, but forexample, right, we are residents
(10:19):
here.
Uh, the owner of the house wantsto sell us the house.
Mm-hmm.
And all they're asking for is,you know, cash and the, you
know, if you need a loan, get aloan.
Mm-hmm.
Um, so in that case, in certainareas, like in Guadalajara,
because it's not near acoastline and it's not near one
of the restricted zones, theydon't seem to be asking us, um,
for they come no, they don'tseem to be asking us at all.
(10:41):
They're just like, do you havethe cash and do you need
lending?
Mm-hmm.
Um, but we also have a lot ofpeople who send us messages.
Who, because they are on a, likein a beach town for example,
then they need the FI going.
So I mean, I will say if you arethe owner, the thing that you
wanna do is sell the house.
Yeah.
Maybe you don't know the processthat implies or it's, uh, needed
(11:04):
for the people that is going tobuy.
Yeah.
It's not the same to sell theproperty to a local.
Or selling to someone that it'sfrom a another country.
Yeah.
Or it has a residency or itdoesn't, yeah.
I mean, and could be different.
I believe Mexico may also haverestrictions on some land that
like you just can't buy it all.
Mm-hmm.
Period.
Like there's no, there's nobuying way.
(11:25):
This thing, there's no way to doit.
And one of the things that wehave heard, unfortunately come
through the comment section isthat somebody will get sold.
Mm-hmm.
A piece of land.
That could not be sold.
Okay.
For example.
Yeah.
It was like a, I mean, they didit site unseen.
They didn't see, see what wasgoing on.
So unfortunately there's thatstuff that goes on as well.
Mm-hmm.
(11:45):
So, um, and because, andbecause, uh, there's less, uh,
regulation here when it comes tothe real estate, I think that
makes it even more important forpeople to work with a team.
Yeah.
Um, and be so, because likesomebody's cousin could go sell
a, the, their aunt.
Their other cousin's house.
Right.
Or a, a nephew could go sellsomebody's house.
(12:05):
Mm-hmm.
But that doesn't necessarilymean that they know what the
process is for that house ormaybe the property.
It's not yet ready Uhhuh to havethe right, or, you know, to have
the, the process done.
Like it could be a deed or itcould be something involved.
Yeah.
We've heard stuff like that too.
Yeah.
Yeah, yeah, yeah.
Where there some sort of like.
(12:25):
Issue with the paperwork of thehouse.
Mm-hmm.
And then the sale ends up takingfour years mm-hmm.
Instead of four months.
Yeah.
So the, the important part hereis that in Mexico, the, the
people that we need the most,and that is the most important
in the process, is the notOntario.
Okay.
The not already, because you aregonna need to be with them at
the end.
Let's say you buy something andin the beginning you're gonna
(12:48):
sign a contract that it saysthat you are.
Um, you have the interest inthat property.
Yeah.
So they're gonna give you like15 days to get all the documents
with the paperwork, do the wholething.
After those 15 days, then you'regonna sit with the person.
And you're gonna sign and you'regonna say, okay, this is gonna
(13:08):
be my down payment, that it'saround 20 to 30%.
And also, let's say you have themoney and you are gonna do a
transfer, a deposit.
Most of the time you wait untilyou are there with the Ontario
and all the people that it'sinvolved, the buyer, the owner,
everybody's there, the broker,uh, or the real estate agent.
(13:29):
And then wait until the moneygets into the bank account of
the owner.
And after that, the Notta couldsay, okay, everything is ready
to go.
In the case that you have themoney in another case is that
you have to apply for a loan.
Yeah, maybe you don't haveenough money, but you have the
down payment and the other partwould be covered by a, by a
(13:49):
loan.
So there's also allowed for anfor in people to ask for a loan
in Mexico.
Yes.
Even when your uh, income comesfrom the states or another
country.
You are allowed.
It's a different process.
It's another person involved.
It's someone that is gonna workwith the whole team to make
everything.
Yeah.
Uh, one thing to keep in mindwith that is you have to run the
(14:09):
numbers to make sure everythingmakes sense.
'cause from what we have seen,the interest rates here are a
lot higher.
So for some people it does makesense.
Um, because for example, we knowpeople who've taken out loans on
properties, but they're cashflowing six figures a year.
So they don't really caremm-hmm.
About the interest rate on the,on the loan.
But there's other people forexample, where like that, that
(14:29):
number just wouldn't make anysense.
And again, very important towork with a team and we'll get
into maybe other team membersyou might need and before you
buy a property in Mexico,'causewe've heard some interesting
stories.
So, um, so that, so for peoplewho may not know.
Um, in countries where theremight be a little bit less
regulation, like in the UnitedStates and Canada, there's a lot
(14:50):
more regulation when it comes tothe sale of a property.
So you have escrow accounts.
Uh, everybody, every real estateagent needs to be licensed, uh,
in other countries, not so much.
Right?
He, like I said, here, you're,anybody could sell a house.
Yeah, pretty much it is changingfrom what I hear, that the
government is now requiringpeople to be licensed and
everyone that we work with islicensed.
(15:10):
Uh, so they know what's going onand they have all the contacts
that you need all over thecountry, but people do run into
that issue.
Mm-hmm.
Uh, here.
But so in order for, from myunderstanding, in countries like
Mexico and Costa Rica, in orderto make, even though there may
not be escrow in the way that anAmerican might know it, unless
there's a involved, in whichcase there's like a whole other
(15:31):
holding account.
Something like that.
Uh, then the notary in Mexico isthe one who serves as the
intermediary to make sure themoney goes where it's supposed
to go.
Yeah.
And that everything is runningsmoothly In the law case.
It is.
And by the, it will be another,like third part situation.
Yeah.
In that case, could be anyinstitution that offers, let's
(15:54):
say in, or Dreams or Monarch orsomething that they're gonna be
sure that you have a bankaccount in Mexico.
And you are putting your, uh,money from any country, let's
say United States or Canada,send that money to the Mexican
bank account.
Even when you have the pricemarket on me on pesos or
(16:16):
dollars, you have to put themoney there.
Yeah.
And they're gonna wait, holdthat money.
And then do the transfer or thedeposit and then be clear that
everything is done on the rightway.
Yeah.
So for those of you who areworried about that process, you
know, you know, are there peoplekeeping an eye on my money?
Mm-hmm.
Is my money safe?
Yeah.
All that kind of stuff.
That's how the process works inMexico.
(16:37):
I've heard in Costa Rica it's alawyer.
Who does it, not necessarily anotary.
So in countries where there'slike less regulation, and again,
it's changing in Mexico, right?
There's constant every day.
Constantly every day constantly.
There's constant changes goingon here with the real estate,
the immigration, the systems,'cause just so many people are
moving here.
Uh, one of our other partnerssent us a, an article that
(16:59):
there's a hundred propertiesbeing sold to foreigners every
day.
Mexico, yeah.
Right now.
So then Mexico now needs to likecatch up mm-hmm.
With all the systems and thingslike that, which means two
things.
Number one, move quickly.
Yeah.
Mm-hmm.
Because these things typicallyget harder, not easier.
Maybe lending will get easier,like you said, or the, it
depends on the demand.
Right.
Or the might, uh, be becomeEasier.
(17:21):
Easier or at least open to morenationalities.
We hope that, yes.
Yeah.
Um, but other than that, thingslike immigration typically get.
Harder, not easier.
Maybe real estate will get alittle easier, but, uh,
immigration most certainly willnot.
Um, and sometimes, you know,people can get, uh, a visa
because they invest mm-hmm.
(17:42):
In a property.
Yeah.
Uh, so sometimes you can kind ofdo both in one shot or they ask
you if you buy the land or theproperty.
Why don't you.
Uh, make a company in Mexico,ah, that another, that's another
option as wells.
Another, yeah.
Yeah.
Or get their residency or, youknow, there of different ways.
It depends.
Another time, it depends like,uh, you are planning to stay
(18:05):
here, you're just lo lookingaround and this is one of your
options.
Or you already know that you'regonna stay for a long chance.
Yeah, and, and we have animmigration attorneys who are
very familiar with the realestate to help with that whole
situation as well because somepeople, for example, will, will
get the residency first and thenmaybe they're like me and Justin
and they're just like lookingaround for now.
(18:25):
And there's a lot of opportunityhere.
And we ended up in Gu Hara andmet people like you and started
this YouTube channel, but wedon't know how long we're gonna
be in Guadalajara or evenMexico.
Yeah.
So, but then there's otherpeople and so we have our
residency and then maybe wedecide to buy a property later.
Mm-hmm.
There's other people who arelooking for a residency or a, a
clear path to residency and thenthey do it, uh, via real estate.
(18:49):
I guess that's the way people,uh, find them themselves feeling
like impedes with everything.
Like if I do the, the legalprocess of the immigration.
Everything will be fine.
Yeah.
And it's a good thing.
I mean, well, yeah.
I mean if you, for example, wesaw this happen in Costa Rica
during the pandemic where, youknow, people owned property in
(19:10):
Costa Rica, but they didn't haveresidency.
Yeah.
They were living off a touristvisa and then the border shut
down and they can't get back totheir property because they
didn't have.
Exactly.
Residency.
Yeah.
And for those of you who've beensnowbirds and you like spent six
months in Mexico and you own aproperty here, but you still
don't have the residency, youmight wanna get on that.
'cause things are changing andthey're getting more strict and,
(19:32):
and you need a team.
Right.
So who are some of the otherpeople that you may need on the
team?
You need people who understandimmigration.
Yeah.
Uh, you need under people whounderstand real estate Yeah.
Such as yourself.
And I would say, uh, tax people.
Yeah.
Because counting people, the taxpeople.
Yes, the tax people, you needthose.
If you're American, you needthem in both countries.
Yeah.
Um, because, uh, I'm sure you'veseen this happen where we'll get
(19:53):
emails or messages from expatswho own a property in Mexico,
they wanna sell the property andnow they find out they're going
to have a much bigger tax billthan a Mexican citizen.
Mm-hmm.
So can you speak to that alittle bit?
'cause sometimes people get veryshocked.
Yeah, I think that's one part ofthe broker or the real estate
agent must talk about it in thecase that you're planning to
(20:16):
sell, right?
Because you can buy the house orthe property and you would spend
a lot of time there, or youwanna rent it or you wanna share
maybe like I know those peoplethat have the house and then
separate so they can do Airbnbin one place and stay in the
other place for themselves.
But suddenly you decided tosell.
(20:38):
And it's like, okay.
As the same way that I, I waswith you in the process of
buying, I will need to be withyou in the process of selling
and telling you that the taxesare gonna be high.
And if you are ready, what's thebest options that you have to
put on the market to price theproperty tax strategy?
Yeah, we have people on our teamwho do tax strategy in those
(21:00):
situations.
'cause there are legal ways toreduce that.
But you need to have a team and.
You know, we were having aconversation with someone last
week that neither her realestate agent or her attorney who
had helped buy the house.
Yeah.
Told her, Hey, when you sellthis, the taxes are gonna be
quite high.
We're talking like 30 pluspercent.
Mm-hmm.
On the wholesale.
Yeah.
Uh, not just the capital gainstax.
(21:22):
Uh, for a Mexican citizen, theypay capital gains tax for a
foreigner.
Mm-hmm.
Uh, you are going to pay a heftytax on the wholesale of the
property and, but there are waysto legally reduce that, and
that's why it's important towork with a team.
Yeah.
And she's like, oh, I justdidn't know that.
I'm like, well, it's nottechnically a real estate
agent's like job to know that.
(21:43):
But I would think the realestate agent should have told
that.
Yeah.
But you know, that's why we,Justin and I have spent the last
two years vetting real estatepeople just such as yourself
because we know they're not allcreated equal.
Yeah.
Um, unfortunately, and sometimesthose surprises, uh, do come up
later or surprises like, uh,what was another one that we
heard the other day?
(22:04):
Oh, paperwork on the house wasdone incorrectly initially, and
then the notary who did itpassed away.
Mm-hmm.
So then it took like four yearsto buy the house or somebody had
a claim to the house.
Through, uh, an inheritance whenat A NCF.
Mm-hmm.
And then that was a whole thing.
So what is that process, um,when you work with a real estate
(22:25):
person?
What is that process to makesure like, Hey, this house is
free and clear.
There's not like weird paperworkstuff going on.
There's not like somebody who'sgonna come out of nowhere and
say that it was left to them ina will.
Yeah.
I guess it's a different ways ofworking in different kind of, I
don't know, like agencies or.
Uh, even the independent part,but if you are gonna put
(22:48):
something on the market, youhave to be really like, really
sure that everything's clear,like no debt.
So that's on the part of theseller?
No.
Yeah.
Yeah.
Okay.
Yeah.
Yeah.
I mean, on the seller and alsoin the broker, that it's gonna
put the property on the market.
It's like, okay, did I make thewhole like, let's say checklist,
(23:09):
that it's no debt.
Like everything that's free.
No, there's no lawsuit orlawsuits.
Yeah.
Until you know that and you havethe guarantee that it's clear,
you can put it on the market.
Otherwise, it's, if it'ssomething involved, you have to
let the people know.
You know, it's, it's a fairfirst situation if I let you
know that it's on a deed or it'son a, I don't know, in a demand
(23:34):
or whatever.
I have to demand does a lawsuit,I have to let you know that it's
gonna take more time, or theprocess is gonna be, I don't
know, heavier than the usual, orthat you have to wait until
everything is clear so you canactually do the, the
negotiation, I mean.
It's all about being clear withthe people.
(23:54):
Yeah.
Yeah.
Well that's one of the reasonswhy we like partnering with you
with our clients because we knowthat you take that stuff very
seriously and you're veryknowledgeable because we get
horror stories, uh, in ourinboxes, in our dms all the
time.
Uh, again, because you know, thegood part about there being less
regulation in a country, there'sa lot more opportunity.
(24:14):
Um, you know, now we'repartnering with real estate
people here, for example.
The downside of a country wherethere's less regulation is
anybody and their mom can dothis stuff.
So then you can run into a lotof issues of people who may not
necessarily know.
Mm-hmm.
You know, what's going on.
You know, they may not know orthey may not have done the due
diligence.
It's called due diligence in theUnited States to know like, oh,
(24:36):
there's an issue with thepaperwork on the house.
This is gonna take way longer.
And we didn't know.
And we didn't know.
Surprise, surprise.
I guess we can add to the themesthat we can talk.
It's also the pre-sale.
And the discount.
Discount that you can have.
And also if you are able to buyland, because I get so many
(24:56):
people, instead of buying ahouse, they wanna buy land and
they wanna do something or theywanna know what's the difference
between the beds.
Yeah.
We're definitely gonna do othervideos on that, so make sure to
subscribe and hit thatnotification bell.
One thing that's kind of in linewith the whole issue of
paperwork and lawsuits andthings like that, because this
is a question we've gotten inthe comments.
(25:18):
Uh, from people saying, youknow, is it worth it to buy
foreclosed properties in Mexico?
I know that the case, likehaving a compare United States
and Mexico, it's far away, far,far away.
Very different.
Yeah.
Very, very different situation.
(25:39):
So in, in my personal opinion, Ido not recommend it.
We know, or we have thereference that before that kind
of information was on the bank,you know, they, they have, the
banks have those lists, so youcan go as a public, like
everybody can go to the bank andask like, the, what do you have
on the list for the floorclosure?
And it was like a easy, easiest,the process.
(26:03):
But now it becomes a littlelike, like a ruffle, like you
don't know what it's gonnabring.
And some of the people thatworks in the loan, um, or the
credit union, they say if youhave an extra money and you like
problems, maybe you wanna buythis kind of houses.
Because, because you don't knowhow long it's gonna take, it
(26:24):
could make you wait for theproperty for four years, five
years, and maybe you put themoney and you are just waiting
and nothing happens.
So I will say no.
And it's very different.
And don't expect the foreclosurehouses in Mexico are in the same
way of the states.
It's not.
(26:45):
Yeah.
'cause in the states it's notworth it.
Probably.
It's not worth it for mostpeople unless they have like a
lot of money to burn.
Yeah.
Like solving pro and time tokill.
Yeah.
And like solving problems.
'cause I think, you know,sometimes people come thinking,
okay, in the United States, youknow, the bank.
Or the association will justkick you out.
And then the bank's trying toget rid of this property.
No.
And then they're gonna sell itfor cheap.
(27:05):
And here you can find cheapproperties like that.
Yeah.
Like we were looking at some theother day.
It's gonna be listed.
It's gonna be listed in a lot ofwebsites.
Yes.
But yeah, our experts have toldus, I mean, you would need to
have some really solid lawyersand people who really know what
they're doing.
And then there's that expense.
Yes.
On top of it is the top, all thelegal expenses.
And the other thing that it'sreally important is that you can
(27:28):
see the house from outside.
But you're not gonna have a lookfrom the inside, so you don't
know what is in it.
Yeah.
It's like buy something thatit's, you know, you don't know,
like, uh, those boxes that youopen and it's Pandoras box,
like, surprise.
Oh, what's this?
Kind of like the taxes that comelater if people don't plan for
(27:48):
the surprise, it could be aproblem because maybe the people
that get out from that house.
I don't know.
Take them, take everything outor, or they damage the house on
the way out.
Out.
Yeah.
So it's not worth it again, likewhy?
Yeah.
Not worth the time.
Money, the headache.
Yeah.
Even if you can get a cheaperhouse, it's gonna end up costing
(28:09):
you more in headaches, lawyerfees.
Time after Worth.
Yeah.
I don't know so many othersituations.
That's pretty much the vibe I'vegotten from most real estate
experts here in Mexico.
They're like, not worth it.
No way.
Not worth it.
It's a no, it's a no.
Alright, well thank you guys somuch for watching the first
installment in our real estateseries.
Make sure to subscribe and hitthe notification bell because
(28:30):
we've got more videos answeringthe real estate questions you've
been sending us that we're gonnastart giving you some answers
to.
And if you need help findingyour own property in Mexico,
whether it's in a restrictedzone.
And you need a fi miso, whetherit's outside of a restricted
zone, whether it's an investmentproperty or a home, or even a
(28:50):
rental, because you're like, Idon't know where I wanna buy it.
I'm just checking the place out.
We can help you with ourrelocation services.
Angie's very well connected.
She's got people all over thecountry.
Angie's had me booked onmeetings with real estate
people, lenders, bankers, me, soeverything, everything for the
(29:10):
last two weeks.
So we are very well connected.
We're more than happy to helpyou.
Entrepreneur expat.com/consultand we will see you guys on the
next one.
Welcome to the beautiful RioPlaza Hotel in Guadalajara,
(00:03):
Mexico.
We are here with Angie Ardi, whois one of our real estate
experts who works with us andour clients when we are helping
them relocate to Mexico.
And we are starting a serieswhere we're going to be
answering all of the real estatequestions that you guys have
been sending us.
So first of all, thank you toAngie.
For being here, helping us withour clients and also doing these
(00:26):
videos for us.
And if you are interested inmore content like this, then
make sure to subscribe and hitthe notification bell because on
Entrepreneur Expat, we talkabout how to make money online
so you can go anywhere in theworld.
We talk about foreigninvestments and international
investments like real estate,which is what we're going to be
talking about today.
(00:46):
And we talk about how to live inother countries.
As American, Canadian, orEuropean, or we've got a lot of
Australians watching us, too.
Expats.
And if you listen to this seriesand you need help with real
estate in Mexico, then sign upfor a relocation consultation
below entrepreneurexpat.com/consult.
(01:07):
And Justin and I can help you.
Angie can help you.
We know Mexico's a very bigcountry that's got something for
everyone and we can help youfind your perfect.
Place here.
So let's get into to thesequestions.
The first video that we're goingto be doing is the question that
we get asked the most, okay?
Which is, can foreigners buyproperty in Mexico?
(01:31):
There seems to be confusion overthis, so.
What?
What's the skinny Angie?
Can foreigners buy property inMexico?
Okay.
I guess that it could be a doubtabout it because in the
Constitution it says that Arancannot owner the land, but in
the law, they also have a placewhere they say that you can have
(01:54):
the right.
Of use the land.
Okay.
So it's about a process that isthe trust that we call it.
Mm-hmm.
That you can use and be part ofthe cell situation.
So that's the way you can own.
Or use the land as the way youneed it.
Yes.
So, uh, those of you who arewatching this video, you may be
(02:16):
familiar with this actually,it's kind of called a freehold
lease, which is an oxymoron.
The two don't really gotogether.
But for example, those of youwho are interested in Thailand
or Southeast Asia, you're goingto be very familiar with this
concept because in Thailand, uh,it's a similar concept of, uh.
The A Thai person.
A Thai citizen needs to be atleast 51% owner of any building.
(02:41):
Mm-hmm.
Or property in Thailand.
But in Mexico, it's a little bitdifferent from my understanding,
because it's only in certainareas where a foreigner would
not be able to own the land.
Correct.
They call it the restrictedarea.
So it's near to the coast, nearto the beach.
All those places that you couldfind a condo in Tuo or Cancun or
(03:03):
ba Los Cabo, all those areincluded.
That is the touristic areas thatwe have, yes.
Okay.
It's a third party situation.
It's where the, let's say aninstitution like a bank, it's
gonna hold the resources or keepthe money until everything is
like, uh, in the follow flowfollowing process.
That you have all the documentsand the everything is complete
(03:25):
and you can actually like, uh,complete the, the sale or the
buying part.
Okay.
Yeah.
So with the, uh, FISOspecifically, we're talking
about coastlines.
I think I heard mountains aswell, or some mountain areas.
Possibly, like if there'stouristy or something like that,
it should be like around 50 anda hundred kilometers.
Inside of the territory.
(03:46):
Okay.
Or yeah, between the land.
Yeah.
So in that case, right, um,basically what a freehold lease
is, for example, uh, you, youlease the land, so the land that
the property is on, because thatneeds to be owned by Mexico.
Mm-hmm.
Or a Mexican citizen.
Mm-hmm.
Um, but you have the freeholdrights.
(04:07):
Uh, to the property.
Meaning although you are leasingthe land, and correct me if I'm
wrong, although you are leasingthe land, you can renovate the
property, you can rent out theproperty, you can sell it later
if you so choose.
Is that kind of how it works?
You are allowed to do all ofthat.
I mean, you have the right touse it.
You, you have the right to doany modulation.
(04:29):
Also the selling part.
And the thing is that when youget the coo, it's gonna be ba
ballot for 50 years.
And you, when that finish, youhave the right to renovate it.
So the only thing is you'regonna be paying a fee that it's
every year, uh, and keep it,keep the payment fee for every
year, and at the end of the 50years, you can renovate it.
(04:52):
So as long as you're planning tobe here or have a loan term stay
in Mexico, it's the right way todo it.
Okay.
So the lease is for 50 years andthen at the 50 year mark you can
renew it.
Yeah.
So who is a fiso Good for?
And who is it not good for?
Because, uh, before we, we weresharing a drink upstairs at the
rooftop bar.
We'll add some B-roll for youguys.
(05:13):
'cause it's stunning.
Yes.
Get great views of the city.
But you were mentioning how thisarrangement of a, a fi miso on
the coastline and things likethat makes sense for certain
buyers and investors, but notothers.
I mean, it will, it's gonna beneeded for all of the terrains.
Mm-hmm.
Mostly, uh, US citizens andCanadians.
(05:34):
That's the most.
Often are common that we have, Imean, there certain changes
every day, you know, becauseit's more people from Europe or
even Asia or Australia that youmentioned it, uh, interested in
coming.
So I guess it's gonna be openfor more experts.
But for now it's mostly for us,citizen and Canadians.
(05:55):
And the thing is like as theworld is changing, we don't
know.
Maybe you just wanna come andexplore and see if it's working
for you.
And it has.
Everything you need or not.
So I guess it depends on thestage that you are planning,
just like to see if it works foryou or if, uh, or if it's a long
term, you can already like thinkabout having a land, right?
(06:17):
Or buying a property here.
Yeah.
So for example, if somebody'smore internationalized, like
we'll have some clientssometimes who have multiple
citizenships and then they wantto, uh, have a footprint in
Mexico, but they don'tnecessarily wanna live in
Mexico.
Mm-hmm.
Uh, so in that case, maybe a, aor a a, the freehold lease or
(06:37):
that restricted zone doesn'tnecessarily make sense if
they're not really gonna behere.
But what if they were going torent it out?
I mean, it's the normal process.
Yeah.
If you want to rent or buy ahouse.
And the other thing that I wannamention it is like, there are
people coming here that theyalready doing the migration
part.
Yeah.
So if you have a permanentresidency, it could apply for
(07:01):
other things.
Right.
But maybe you just wanna rent ahouse.
So it will be the normalprocess.
Even if you are looking for aplace to buy, you'll need to
know where do you wanna buy?
Mm-hmm.
Or rent.
How do you want the place to be?
Like how many bedrooms or uh,restrooms or two floors or
whatever.
And the other part is if you areready to pay for that, I mean,
(07:24):
in the case of the rent, it'sthe normal process is you have
to make one month for the rentand one deposit.
And also have the, an extradeposit or a person that it's
gonna warranty that you will bepaid theor.
Yeah, yeah.
Also known as the, the val.
There are ways Val, or yeah,there are legal ways around
that.
So our team can help you withthat because we certainly did
(07:47):
not have an val and we had to dolike an alternative contract.
Exactly.
So there's ways around it.
I know sometimes people see theguarantor thing and they're like
whacked and a lot of countries,um, ask for that.
But in Mexico, there is a way torent.
Even if you do not have aguarantor.
But going back to the investor,like let's say an investor wants
to.
Um, get a, a property in arestricted zone where they would
(08:10):
need a, a fee, a or a uh,freehold lease.
Um, for those who are lookingfor the English term, um, if
they decide to,'cause they'reallowed to rent out that
property to a tenant.
Correct.
So there's no restriction onthem being able to do that?
No, there is not.
So if they're planning on beingin other countries, but they're
renting out that property toanother tenant, if, does that
(08:32):
arrangement make sense?
It does.
Yes, it does.
Even if they're paying that feeevery year.
Yeah.
Yeah.
I think sense think it is a verydifferent, like things Yeah.
That we're talking.
Yeah.
So it's a lot.
Yeah.
Okay.
So basically just run thenumbers, see if everything makes
sense, work with a team to makesure the numbers make sense.
Okay.
So outside of the restrictedzone, so away from the
(08:52):
coastlines, away from the.
The more touristy areas wherethey do put more restrictions on
whether or not foreigners canpurchase, um, what is that
process like?
Because in that case, you don'tneed a, a fiso outside of the
restricted zone.
Mm.
I think we can check that withsomeone that it's actually
specialized in the fiso, becauseI have the, the clue that you
(09:17):
need it.
It doesn't matter where.
Mm-hmm.
But you need the, if you areafraid.
In Mexico.
That's the only thing.
But as you see in the law or theconstitution part, it says that
you can own the right.
So maybe in that case,'causewe've heard, we've had people
buy properties or we've heard ofpeople just buying properties
(09:38):
outright outside of therestricted zone.
But this is one of the thingsgoing on with Mexico right now
is there's so many systemschanges going on in Mexico right
now.
Yeah.
Um, that, you know, in one areayou might need it in one area.
They, you might not, thequalifications might change from
one day to the next.
So.
It's very important for you guyswho are watching to really work
(09:59):
with a team.
Because right now things are, toyour point, there's so many
people coming to Mexico rightnow that it's like Mexico has to
adjust its systems.
Exactly.
Yeah.
As all these people are comingin, which we understand having
run businesses, you have toadjust systems as people, um,
are, uh, coming in, but forexample, right, we are residents
(10:19):
here.
Uh, the owner of the house wantsto sell us the house.
Mm-hmm.
And all they're asking for is,you know, cash and the, you
know, if you need a loan, get aloan.
Mm-hmm.
Um, so in that case, in certainareas, like in Guadalajara,
because it's not near acoastline and it's not near one
of the restricted zones, theydon't seem to be asking us, um,
for they come no, they don'tseem to be asking us at all.
(10:41):
They're just like, do you havethe cash and do you need
lending?
Mm-hmm.
Um, but we also have a lot ofpeople who send us messages.
Who, because they are on a, likein a beach town for example,
then they need the FI going.
So I mean, I will say if you arethe owner, the thing that you
wanna do is sell the house.
Yeah.
Maybe you don't know the processthat implies or it's, uh, needed
(11:04):
for the people that is going tobuy.
Yeah.
It's not the same to sell theproperty to a local.
Or selling to someone that it'sfrom a another country.
Yeah.
Or it has a residency or itdoesn't, yeah.
I mean, and could be different.
I believe Mexico may also haverestrictions on some land that
like you just can't buy it all.
Mm-hmm.
Period.
Like there's no, there's nobuying way.
(11:25):
This thing, there's no way to doit.
And one of the things that wehave heard, unfortunately come
through the comment section isthat somebody will get sold.
Mm-hmm.
A piece of land.
That could not be sold.
Okay.
For example.
Yeah.
It was like a, I mean, they didit site unseen.
They didn't see, see what wasgoing on.
So unfortunately there's thatstuff that goes on as well.
Mm-hmm.
(11:45):
So, um, and because, andbecause, uh, there's less, uh,
regulation here when it comes tothe real estate, I think that
makes it even more important forpeople to work with a team.
Yeah.
Um, and be so, because likesomebody's cousin could go sell
a, the, their aunt.
Their other cousin's house.
Right.
Or a, a nephew could go sellsomebody's house.
(12:05):
Mm-hmm.
But that doesn't necessarilymean that they know what the
process is for that house ormaybe the property.
It's not yet ready Uhhuh to havethe right, or, you know, to have
the, the process done.
Like it could be a deed or itcould be something involved.
Yeah.
We've heard stuff like that too.
Yeah.
Yeah, yeah, yeah.
Where there some sort of like.
(12:25):
Issue with the paperwork of thehouse.
Mm-hmm.
And then the sale ends up takingfour years mm-hmm.
Instead of four months.
Yeah.
So the, the important part hereis that in Mexico, the, the
people that we need the most,and that is the most important
in the process, is the notOntario.
Okay.
The not already, because you aregonna need to be with them at
the end.
Let's say you buy something andin the beginning you're gonna
(12:48):
sign a contract that it saysthat you are.
Um, you have the interest inthat property.
Yeah.
So they're gonna give you like15 days to get all the documents
with the paperwork, do the wholething.
After those 15 days, then you'regonna sit with the person.
And you're gonna sign and you'regonna say, okay, this is gonna
(13:08):
be my down payment, that it'saround 20 to 30%.
And also, let's say you have themoney and you are gonna do a
transfer, a deposit.
Most of the time you wait untilyou are there with the Ontario
and all the people that it'sinvolved, the buyer, the owner,
everybody's there, the broker,uh, or the real estate agent.
(13:29):
And then wait until the moneygets into the bank account of
the owner.
And after that, the Notta couldsay, okay, everything is ready
to go.
In the case that you have themoney in another case is that
you have to apply for a loan.
Yeah, maybe you don't haveenough money, but you have the
down payment and the other partwould be covered by a, by a
(13:49):
loan.
So there's also allowed for anfor in people to ask for a loan
in Mexico.
Yes.
Even when your uh, income comesfrom the states or another
country.
You are allowed.
It's a different process.
It's another person involved.
It's someone that is gonna workwith the whole team to make
everything.
Yeah.
Uh, one thing to keep in mindwith that is you have to run the
(14:09):
numbers to make sure everythingmakes sense.
'cause from what we have seen,the interest rates here are a
lot higher.
So for some people it does makesense.
Um, because for example, we knowpeople who've taken out loans on
properties, but they're cashflowing six figures a year.
So they don't really caremm-hmm.
About the interest rate on the,on the loan.
But there's other people forexample, where like that, that
(14:29):
number just wouldn't make anysense.
And again, very important towork with a team and we'll get
into maybe other team membersyou might need and before you
buy a property in Mexico,'causewe've heard some interesting
stories.
So, um, so that, so for peoplewho may not know.
Um, in countries where theremight be a little bit less
regulation, like in the UnitedStates and Canada, there's a lot
(14:50):
more regulation when it comes tothe sale of a property.
So you have escrow accounts.
Uh, everybody, every real estateagent needs to be licensed, uh,
in other countries, not so much.
Right?
He, like I said, here, you're,anybody could sell a house.
Yeah, pretty much it is changingfrom what I hear, that the
government is now requiringpeople to be licensed and
everyone that we work with islicensed.
(15:10):
Uh, so they know what's going onand they have all the contacts
that you need all over thecountry, but people do run into
that issue.
Mm-hmm.
Uh, here.
But so in order for, from myunderstanding, in countries like
Mexico and Costa Rica, in orderto make, even though there may
not be escrow in the way that anAmerican might know it, unless
there's a involved, in whichcase there's like a whole other
(15:31):
holding account.
Something like that.
Uh, then the notary in Mexico isthe one who serves as the
intermediary to make sure themoney goes where it's supposed
to go.
Yeah.
And that everything is runningsmoothly In the law case.
It is.
And by the, it will be another,like third part situation.
Yeah.
In that case, could be anyinstitution that offers, let's
(15:54):
say in, or Dreams or Monarch orsomething that they're gonna be
sure that you have a bankaccount in Mexico.
And you are putting your, uh,money from any country, let's
say United States or Canada,send that money to the Mexican
bank account.
Even when you have the pricemarket on me on pesos or
(16:16):
dollars, you have to put themoney there.
Yeah.
And they're gonna wait, holdthat money.
And then do the transfer or thedeposit and then be clear that
everything is done on the rightway.
Yeah.
So for those of you who areworried about that process, you
know, you know, are there peoplekeeping an eye on my money?
Mm-hmm.
Is my money safe?
Yeah.
All that kind of stuff.
That's how the process works inMexico.
(16:37):
I've heard in Costa Rica it's alawyer.
Who does it, not necessarily anotary.
So in countries where there'slike less regulation, and again,
it's changing in Mexico, right?
There's constant every day.
Constantly every day constantly.
There's constant changes goingon here with the real estate,
the immigration, the systems,'cause just so many people are
moving here.
Uh, one of our other partnerssent us a, an article that
(16:59):
there's a hundred propertiesbeing sold to foreigners every
day.
Mexico, yeah.
Right now.
So then Mexico now needs to likecatch up mm-hmm.
With all the systems and thingslike that, which means two
things.
Number one, move quickly.
Yeah.
Mm-hmm.
Because these things typicallyget harder, not easier.
Maybe lending will get easier,like you said, or the, it
depends on the demand.
Right.
Or the might, uh, be becomeEasier.
(17:21):
Easier or at least open to morenationalities.
We hope that, yes.
Yeah.
Um, but other than that, thingslike immigration typically get.
Harder, not easier.
Maybe real estate will get alittle easier, but, uh,
immigration most certainly willnot.
Um, and sometimes, you know,people can get, uh, a visa
because they invest mm-hmm.
(17:42):
In a property.
Yeah.
Uh, so sometimes you can kind ofdo both in one shot or they ask
you if you buy the land or theproperty.
Why don't you.
Uh, make a company in Mexico,ah, that another, that's another
option as wells.
Another, yeah.
Yeah.
Or get their residency or, youknow, there of different ways.
It depends.
Another time, it depends like,uh, you are planning to stay
(18:05):
here, you're just lo lookingaround and this is one of your
options.
Or you already know that you'regonna stay for a long chance.
Yeah, and, and we have animmigration attorneys who are
very familiar with the realestate to help with that whole
situation as well because somepeople, for example, will, will
get the residency first and thenmaybe they're like me and Justin
and they're just like lookingaround for now.
(18:25):
And there's a lot of opportunityhere.
And we ended up in Gu Hara andmet people like you and started
this YouTube channel, but wedon't know how long we're gonna
be in Guadalajara or evenMexico.
Yeah.
So, but then there's otherpeople and so we have our
residency and then maybe wedecide to buy a property later.
Mm-hmm.
There's other people who arelooking for a residency or a, a
clear path to residency and thenthey do it, uh, via real estate.
(18:49):
I guess that's the way people,uh, find them themselves feeling
like impedes with everything.
Like if I do the, the legalprocess of the immigration.
Everything will be fine.
Yeah.
And it's a good thing.
I mean, well, yeah.
I mean if you, for example, wesaw this happen in Costa Rica
during the pandemic where, youknow, people owned property in
(19:10):
Costa Rica, but they didn't haveresidency.
Yeah.
They were living off a touristvisa and then the border shut
down and they can't get back totheir property because they
didn't have.
Exactly.
Residency.
Yeah.
And for those of you who've beensnowbirds and you like spent six
months in Mexico and you own aproperty here, but you still
don't have the residency, youmight wanna get on that.
'cause things are changing andthey're getting more strict and,
(19:32):
and you need a team.
Right.
So who are some of the otherpeople that you may need on the
team?
You need people who understandimmigration.
Yeah.
Uh, you need under people whounderstand real estate Yeah.
Such as yourself.
And I would say, uh, tax people.
Yeah.
Because counting people, the taxpeople.
Yes, the tax people, you needthose.
If you're American, you needthem in both countries.
Yeah.
Um, because, uh, I'm sure you'veseen this happen where we'll get
(19:53):
emails or messages from expatswho own a property in Mexico,
they wanna sell the property andnow they find out they're going
to have a much bigger tax billthan a Mexican citizen.
Mm-hmm.
So can you speak to that alittle bit?
'cause sometimes people get veryshocked.
Yeah, I think that's one part ofthe broker or the real estate
agent must talk about it in thecase that you're planning to
(20:16):
sell, right?
Because you can buy the house orthe property and you would spend
a lot of time there, or youwanna rent it or you wanna share
maybe like I know those peoplethat have the house and then
separate so they can do Airbnbin one place and stay in the
other place for themselves.
But suddenly you decided tosell.
(20:38):
And it's like, okay.
As the same way that I, I waswith you in the process of
buying, I will need to be withyou in the process of selling
and telling you that the taxesare gonna be high.
And if you are ready, what's thebest options that you have to
put on the market to price theproperty tax strategy?
Yeah, we have people on our teamwho do tax strategy in those
(21:00):
situations.
'cause there are legal ways toreduce that.
But you need to have a team and.
You know, we were having aconversation with someone last
week that neither her realestate agent or her attorney who
had helped buy the house.
Yeah.
Told her, Hey, when you sellthis, the taxes are gonna be
quite high.
We're talking like 30 pluspercent.
Mm-hmm.
On the wholesale.
Yeah.
Uh, not just the capital gainstax.
(21:22):
Uh, for a Mexican citizen, theypay capital gains tax for a
foreigner.
Mm-hmm.
Uh, you are going to pay a heftytax on the wholesale of the
property and, but there are waysto legally reduce that, and
that's why it's important towork with a team.
Yeah.
And she's like, oh, I justdidn't know that.
I'm like, well, it's nottechnically a real estate
agent's like job to know that.
(21:43):
But I would think the realestate agent should have told
that.
Yeah.
But you know, that's why we,Justin and I have spent the last
two years vetting real estatepeople just such as yourself
because we know they're not allcreated equal.
Yeah.
Um, unfortunately, and sometimesthose surprises, uh, do come up
later or surprises like, uh,what was another one that we
heard the other day?
(22:04):
Oh, paperwork on the house wasdone incorrectly initially, and
then the notary who did itpassed away.
Mm-hmm.
So then it took like four yearsto buy the house or somebody had
a claim to the house.
Through, uh, an inheritance whenat A NCF.
Mm-hmm.
And then that was a whole thing.
So what is that process, um,when you work with a real estate
(22:25):
person?
What is that process to makesure like, Hey, this house is
free and clear.
There's not like weird paperworkstuff going on.
There's not like somebody who'sgonna come out of nowhere and
say that it was left to them ina will.
Yeah.
I guess it's a different ways ofworking in different kind of, I
don't know, like agencies or.
Uh, even the independent part,but if you are gonna put
(22:48):
something on the market, youhave to be really like, really
sure that everything's clear,like no debt.
So that's on the part of theseller?
No.
Yeah.
Yeah.
Okay.
Yeah.
Yeah.
I mean, on the seller and alsoin the broker, that it's gonna
put the property on the market.
It's like, okay, did I make thewhole like, let's say checklist,
(23:09):
that it's no debt.
Like everything that's free.
No, there's no lawsuit orlawsuits.
Yeah.
Until you know that and you havethe guarantee that it's clear,
you can put it on the market.
Otherwise, it's, if it'ssomething involved, you have to
let the people know.
You know, it's, it's a fairfirst situation if I let you
know that it's on a deed or it'son a, I don't know, in a demand
(23:34):
or whatever.
I have to demand does a lawsuit,I have to let you know that it's
gonna take more time, or theprocess is gonna be, I don't
know, heavier than the usual, orthat you have to wait until
everything is clear so you canactually do the, the
negotiation, I mean.
It's all about being clear withthe people.
(23:54):
Yeah.
Yeah.
Well that's one of the reasonswhy we like partnering with you
with our clients because we knowthat you take that stuff very
seriously and you're veryknowledgeable because we get
horror stories, uh, in ourinboxes, in our dms all the
time.
Uh, again, because you know, thegood part about there being less
regulation in a country, there'sa lot more opportunity.
(24:14):
Um, you know, now we'repartnering with real estate
people here, for example.
The downside of a country wherethere's less regulation is
anybody and their mom can dothis stuff.
So then you can run into a lotof issues of people who may not
necessarily know.
Mm-hmm.
You know, what's going on.
You know, they may not know orthey may not have done the due
diligence.
It's called due diligence in theUnited States to know like, oh,
(24:36):
there's an issue with thepaperwork on the house.
This is gonna take way longer.
And we didn't know.
And we didn't know.
Surprise, surprise.
I guess we can add to the themesthat we can talk.
It's also the pre-sale.
And the discount.
Discount that you can have.
And also if you are able to buyland, because I get so many
(24:56):
people, instead of buying ahouse, they wanna buy land and
they wanna do something or theywanna know what's the difference
between the beds.
Yeah.
We're definitely gonna do othervideos on that, so make sure to
subscribe and hit thatnotification bell.
One thing that's kind of in linewith the whole issue of
paperwork and lawsuits andthings like that, because this
is a question we've gotten inthe comments.
(25:18):
Uh, from people saying, youknow, is it worth it to buy
foreclosed properties in Mexico?
I know that the case, likehaving a compare United States
and Mexico, it's far away, far,far away.
Very different.
Yeah.
Very, very different situation.
(25:39):
So in, in my personal opinion, Ido not recommend it.
We know, or we have thereference that before that kind
of information was on the bank,you know, they, they have, the
banks have those lists, so youcan go as a public, like
everybody can go to the bank andask like, the, what do you have
on the list for the floorclosure?
And it was like a easy, easiest,the process.
(26:03):
But now it becomes a littlelike, like a ruffle, like you
don't know what it's gonnabring.
And some of the people thatworks in the loan, um, or the
credit union, they say if youhave an extra money and you like
problems, maybe you wanna buythis kind of houses.
Because, because you don't knowhow long it's gonna take, it
(26:24):
could make you wait for theproperty for four years, five
years, and maybe you put themoney and you are just waiting
and nothing happens.
So I will say no.
And it's very different.
And don't expect the foreclosurehouses in Mexico are in the same
way of the states.
It's not.
(26:45):
Yeah.
'cause in the states it's notworth it.
Probably.
It's not worth it for mostpeople unless they have like a
lot of money to burn.
Yeah.
Like solving pro and time tokill.
Yeah.
And like solving problems.
'cause I think, you know,sometimes people come thinking,
okay, in the United States, youknow, the bank.
Or the association will justkick you out.
And then the bank's trying toget rid of this property.
No.
And then they're gonna sell itfor cheap.
(27:05):
And here you can find cheapproperties like that.
Yeah.
Like we were looking at some theother day.
It's gonna be listed.
It's gonna be listed in a lot ofwebsites.
Yes.
But yeah, our experts have toldus, I mean, you would need to
have some really solid lawyersand people who really know what
they're doing.
And then there's that expense.
Yes.
On top of it is the top, all thelegal expenses.
And the other thing that it'sreally important is that you can
(27:28):
see the house from outside.
But you're not gonna have a lookfrom the inside, so you don't
know what is in it.
Yeah.
It's like buy something thatit's, you know, you don't know,
like, uh, those boxes that youopen and it's Pandoras box,
like, surprise.
Oh, what's this?
Kind of like the taxes that comelater if people don't plan for
(27:48):
the surprise, it could be aproblem because maybe the people
that get out from that house.
I don't know.
Take them, take everything outor, or they damage the house on
the way out.
Out.
Yeah.
So it's not worth it again, likewhy?
Yeah.
Not worth the time.
Money, the headache.
Yeah.
Even if you can get a cheaperhouse, it's gonna end up costing
(28:09):
you more in headaches, lawyerfees.
Time after Worth.
Yeah.
I don't know so many othersituations.
That's pretty much the vibe I'vegotten from most real estate
experts here in Mexico.
They're like, not worth it.
No way.
Not worth it.
It's a no, it's a no.
Alright, well thank you guys somuch for watching the first
installment in our real estateseries.
Make sure to subscribe and hitthe notification bell because
(28:30):
we've got more videos answeringthe real estate questions you've
been sending us that we're gonnastart giving you some answers
to.
And if you need help findingyour own property in Mexico,
whether it's in a restrictedzone.
And you need a fi miso, whetherit's outside of a restricted
zone, whether it's an investmentproperty or a home, or even a
(28:50):
rental, because you're like, Idon't know where I wanna buy it.
I'm just checking the place out.
We can help you with ourrelocation services.
Angie's very well connected.
She's got people all over thecountry.
Angie's had me booked onmeetings with real estate
people, lenders, bankers, me, soeverything, everything for the
(29:10):
last two weeks.
So we are very well connected.
We're more than happy to helpyou.
Entrepreneur expat.com/consultand we will see you guys on the
next one.
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