Thanks for sharing the information.

I feel sometimes a bit 'late' to the table and woefully ignorant of the language and lingo in investing.

Thank you in advance for sharing your expertise!

This makes it a lot more accessible for people who don’t have full cash on hand but want to lock in equity early.I’ve partnered closely with a local developer who’s become a good friend and guide, and I’m now starting to help others from the U.S. explore options for low-barrier, high-upside real estate investments — especially those priced out of markets like LA or Denver, but still looking to build equity and cash flow.If you’re curious about investing in Mexico — or wondering how to start, avoid pitfalls, or compare it to U.S. real estate — I’m happy to share what I’ve learned.

I intend to buy an SFR property, and then create an LLC with shared ownership or set up having Tenancy in Common agreements after its bought .Does making an LLC help or having Tenancy in Common agreements make more sense ?

Term SheetInvestor Contribution $281,494Use of Funds Escrowed and disbursed directly to lienholders to ensure title clearanceProperty Valuation Floor 700,000.00Investor Equity Share 40% of net appreciation above valuation floor, payable at exitExit Trigger Sale, refinance, or 10-year maturity (whichever occurs first)Security Instrument Recorded HEA agreement, subordinate to primary mortgage ($306,020)Investor Position Subordinate to mortgage; senior to seller equityClosing Timeline 30–45 days from investor commitmentDue Diligence Access Full access to property disclosures, listing activity, and lien documentation.Strategic RationaleLast 12 months: ~8.68% appreciation—slightly above national averageLatest quarter: ~1.61%, which annualizes to 6.61%High Equity Potential: Estimated $281K in equity post-lien clearance.Market Momentum: Active listing with strong visibility and buyer interest.Risk Mitigation: Investor position secured by recorded agreement and valuation floor.Resulting in liens of $281,494 (investor) and $306,020 (Mortgage) is $587,514Yearly Breakdown:Year 1:Property Value: $700,000 × 1.06 = $742,000Net Appreciation: $742,000 - $700,000 = $42,000Investor's Share: $42,000 × 0.40 = $16,800Year 2:Property Value: $742,000 × 1.06 = $786,520Net Appreciation: $786,520 - $700,000 = $86,520Investor's Share: $86,520 × 0.40 = $34,608Year 3:Property Value: $786,520 × 1.06 = $833,711.20Net Appreciation: $833,711.20 - $700,000 = $133,711.20Investor's Share: $133,711.20 × 0.40 = $53,484.48Year 4:Property Value: $833,711.20 × 1.06 = $883,733.87Net Appreciation: $883,733.87 - $700,000 = $183,733.87Investor's Share: $183,733.87 × 0.40 = $73,493.55Year 5:Property Value: $883,733.87 × 1.06 = $936,757.90Net Appreciation: $936,757.90 - $700,000 = $236,757.90Investor's Share: $236,757.90 × 0.40 = $94,703.16Year 6:Property Value: $936,757.90 × 1.06 = $992,963.37Net Appreciation: $992,963.37 - $700,000 = $292,963.37Investor's Share: $292,963.37 × 0.40 = $117,185.35Year 7:Property Value: $992,963.37 × 1.06 = $1,052,541.18Net Appreciation: $1,052,541.18 - $700,000 = $352,541.18Investor's Share: $352,541.18 × 0.40 = $141,016.47Year 8:Property Value: $1,052,541.18 × 1.06 = $1,115,693.65Net Appreciation: $1,115,693.65 - $700,000 = $415,693.65Investor's Share: $415,693.65 × 0.40 = $166,277.46Year 9:Property Value: $1,115,693.65 × 1.06 = $1,182,635.27Net Appreciation: $1,182,635.27 - $700,000 = $482,635.27Investor's Share: $482,635.27 × 0.40 = $193,054.11Year 10:Property Value: $1,182,635.27 × 1.06 = $1,253,593.39Net Appreciation: $1,253,593.39 - $700,000 = $553,593.39Investor's Share: $553,593.39 × 0.40 = $221,437.36

@Jerry W. gave an excellent example of language to go over with your WA specific attorney.  

Rental Agreement for every stay (include language that covers credit card authorization and controlling law language) 2.

Proc. 2002-22, which outlines key features like:- Each co-owner holding a direct, undivided interest in the property- No centralized management or pooling of income/expenses- Freedom for each owner to sell or transfer their share independentlyIf the agreement is too collaborative (e.g. shared profits, joint decision-making, or a “manager”), it risks being treated as a partnership, which is not 1031-eligible.Since you’re living in the property, your portion is considered primary residence use, which doesn’t qualify for 1031.

Use descriptive language to paint a picture of what living in your property would be like, emphasizing the lifestyle and benefits of the location.Another strategy is to broaden your marketing efforts.