Financial Advisor · Albuquerque, NM · Member since 2014 · 82 posts · 30 votes
I am familiar with financing concepts when buying real estate as an american in America. However, buying properties outside the US is completely foreign (ha-ha) to me. An associate is near retirement age, and has just received an opportunity to fulfill her dream to purchase a well-established bed-and-breakfast in Cozumel, encompassing both the property and the enterprise. She has down-payment funds available by personal savings plus $200K equity from her Atlanta, Georgia home. The business is said to currently yield an annual profit of $80K.
If this opportunity were to come to you, what method(s) would you use to structure the financing of this "international" purchase? What type(s) of loan(s)?
Real Estate Agent · Saint Louis, MO · Member since 2015 · 115 posts · 49 votes
9y
Hi Denise! Wow that's a great dream!! Typically in Mexico, an American would pay with cash as we do not use the same banking systems (your credit is no good there. :) and US Banks won't generallly loan on foreign properties. You may be able to find a path with an international bank like HSBC or Barclays, but most of the time buyers will leverage their assets (say a line of credit against property or securities in the US) or pay with cold hard cash. Another option can be seller financing if the seller is willing. You could ask around for banks in Mexico that might loan to a foreigner, but these if they ever happen usually have a very hefty down payment requirement.
You would also need a "Notario" basically a lawyer to conduct the transaction for you. I happen to know one specifically in Cozumel and would be happy to connect you if desired. He may also know of some other options. Sometimes real estate developers provide financing, but with a B&B thats probably not the case.
Let me know how I can help. I'd be happy to chat on the phone. I am a Certified International Property Specialist so I have various resources around the world who can help with purchasing / selling properties abroad.....