Pros and Cons on investing in Mexico

[Lorraine Patterson]

I would love to hear from anyone who, or is in the process of investing in Mexico or RE agents that are familiar with the buying and lending process. There is a new development and I've just begin working with a Real Estate agent today and he has given me some info. and we are getting on a phone call tomorrow. Any advice would be much appreciated. Pros and cons on investing, what to watch out for, etc.

TIA!

[Mike Lambert]

@Pablo Flores

Here are your options:

1. Most foreigners pay cash. If you buy the right property in Mexico, you can get a higher return by paying cash than if you buy a property with a mortgage in the US, especially right now.

2. Many Americans take a HELOC on a US property. Unless you have no other use for your home equity, this is akin to paying cash though.

3. You can take a mortgage with a Mexican bank. Generally 50% LTV and significantly higher interest rate than in the US.

4. Some finance companies specialize in offering mortgages to foreigners. Beware that they advertise interest rates in the 2 - 4% range while the real rate is more in the 10 - 20% range.

5. Developer financing if you buy pre-construction, which would be at a much lower rate than mortgages. This is rare and has become even more so given how hot the market is but I can guarantee you that it exists because we're offering it.

6. Seller financing. It's the same as developer financing but for existing properties. It's not as common as in the US but it exists and I have offered it in the past.

7. Use money from your retirement accounts.

Hope this helps. I try to not put names in posts because this is a public forum but feel free to DM me if you want that kind of info.