I first became interested in the idea of buying real estate during a trip to Cabo San Lucas. It was warm, tropical, walkable, and small. It just felt like paradise. I also liked the idea of having some money in another country, for currency diversification and asset protection. I have purchased five condos now in Mexico and have learned something new with each deal.

I had heard about the American buyers in Punta Banda near Ensenada who lost their houses. I read up on that a little bit and it sounded like they had built on leased land owned by an Ejido (a farming collective), bought into a deal that sounded too good to be true, and they should have known better. I defended Mexico against people who brought up that story. However, it turns out that there was quite a bit more to that story than buyers being swindled by an Ejido that tried to sell land that they shouldn’t have.

Questions to Ask Before Making an Offer
The Case for U.S. Title Insurance
Asking for Title Insurance is Not Enough
A Competent Attorney is Worth the Money
Expect Large Transaction Costs and Slow Closings
Different Notarios Make Different Calculations
If The Seller Doesn’t Pay Capital Gains Tax, The Buyer Will
Avoid Misunderstandings About Recorded Transfer Price
It is Hard to Get Comps
Contact Other Owners
Originals Are Important
Squatters’ Rights
About Fideicomisos
Closing Process
Mexican Corporations
Capital Gains Taxes May be Higher Than You Expect
Financing Contracts
Other considerations