BajaNomad

8500 sq. ft. beach house......

surfer jim - 3-26-2008 at 07:37 AM

Just for fun I checked out this ad from the top of the page...sure is a lot of house for a small price... allmost TOO much ....anybody seen it in person....?

"If and when the lot becomes available"

thebajarunner - 3-26-2008 at 08:17 AM

Sounds like an ejido problem to me.

Can anyone spell "Punta Banda"????

bajabound2005 - 3-26-2008 at 08:28 AM

which ad?

elgatoloco - 3-26-2008 at 08:43 AM

Sacrifice
Heart Problems
jedi warrior.com

top left hand page

When I first saw the ad I thought it was a house that is right next to Nuevo Mazatlan that we visited with the folks who lived there a few years back. Similar type house, huge, brick, unfinished,owner in poor health. Nice people.

Roberto - 3-26-2008 at 08:46 AM

Quote:
Originally posted by thebajarunner
Sounds like an ejido problem to me.

Can anyone spell "Punta Banda"????


They're talking about available for sale. That house seems to be south of San Felipe - very little beach property for sale there - mostly leases and expensive ones at that. So you're paying 150k for a house on a lot that is leased for (at best) 10 years at a time.

Taco de Baja - 3-26-2008 at 09:51 AM

Quote:
Originally posted by bajabound2005
which ad?


http://www.jetiii.com/house/

bajamigo - 3-26-2008 at 10:16 AM

Quote:
Originally posted by thebajarunner
Sounds like an ejido problem to me.

Can anyone spell "Punta Banda"????


P-A-R-A-D-I-S-E. Do I advance to the next round??

DENNIS - 3-26-2008 at 12:24 PM

That house is a monster. The add says it's in a camp. Beach camp, I assume. Lease land for certain.

Hook - 3-26-2008 at 02:11 PM

Ad says it is in Campo San Pedro, 34 kms south of San Felipe.

The next round is....

thebajarunner - 3-26-2008 at 04:04 PM

Quote:
Originally posted by bajamigo
Quote:
Originally posted by thebajarunner
Sounds like an ejido problem to me.

Can anyone spell "Punta Banda"????


P-A-R-A-D-I-S-E. Do I advance to the next round??


I guess it is finding a chain link fence around your own place and having some dude renting it out to others every weekend.

ILikeMex - 3-26-2008 at 04:45 PM

I poked around the site from that link earlier. The guy that owns the land is old (70 or 80s) and his son is going to inherit the land. The person who has the lease believes the son is not going to renew and will be selling the campo. The son has already done this (according to the lease owner) to another plot of land.

bancoduo - 3-26-2008 at 04:55 PM

Quote:
Originally posted by ILikeMex
I poked around the site from that link earlier. The guy that owns the land is old (70 or 80s) and his son is going to inherit the land. The person who has the lease believes the son is not going to renew and will be selling the campo. The son has already done this (according to the lease owner) to another plot of land.
I don't think I'll be at the front of that line.

DENNIS - 3-26-2008 at 05:06 PM

WHAT?....GASP CHOKE CHOKE...

You mean to say the mansion owner isn't offering full disclosure? There must be some mistake. Surely he wouldn't do such a thing. I'll bet he just forgot.

rts551 - 3-26-2008 at 06:37 PM

Everything seems to be on the web site including a copy of the current lease.. But I guess you never know.

Current lease is up in 2011 with an option to renew for 100% increase in fee. The web site also talks to the potential of the lots in the Campo being sold.

DENNIS - 3-26-2008 at 07:12 PM

Quote:
Originally posted by rts551

Current lease is up in 2011 with an option to renew for 100% increase in fee.


Options to renew are meaningless. Can't be enforced in court.

BajaWarrior - 3-26-2008 at 08:12 PM

I know that house, it has been a real work in progress. It is just about 2 miles south of mine on the bluff.

I think he's a little high on some of his prices of furniture and solar but I guess he's high because it's already down there.

I'm on a lease, as so are my neighbors who have had their homes for over 40 years before the Fidecemiso was available, but then we have a good landlord who's not a pig.

8500 Sq Ft Beach House - I'm the owner.

bgp5740 - 3-27-2008 at 05:46 AM

Hi folk's,

I am the owner of the house and would be happy to answer your questions. I have tried to do a full disclosure on the home at the site but if there are any more questions, please ask.

I am thinking that I way under priced the house, am I correct?

jtorres

Roberto - 3-27-2008 at 09:07 AM

Quote:
Originally posted by bgp5740
I am thinking that I way under priced the house, am I correct?


If the title to the land was available, yes. As it is IMO $150,000 for property you can't own (and that includes the house, since it is built on leased property, it reverts to the land owner) - NO.

It also looks like part of that property, due to the elevation from the beach might be in the Federal Zone. Is this the case?

Renewing the lease after 2011 bay not be a problem, but I would not expect it to be true ten years after that. That whole area will be bought and sold. While there's a slowdown in building right now, that won't continue to be the case.

Just my two cents.

ILikeMex - 3-27-2008 at 09:21 AM

I thought the owner did a pretty good job of disclosing information on his web site. It is not on the front page that the lease is a risk of being renewed, but the information is in there if you research.

two cents

bgp5740 - 3-27-2008 at 09:26 AM

Thanks for your thoughts. As to whether it is in the Federal Zone, only the "Beach Deck" and what will be the steps and, I believe a few feet of the beach front yard.

Title is tricky and I am going to refer you to a paper I finally wrote after getting many, many emails about leases, title, etc. This should be informitive and can be viewed at http://www.jetiii.com/House/Land_Investment.pdf



Thanks again,

jtorres

Disclosure - Grant new 10 year lease

bgp5740 - 3-27-2008 at 09:45 AM

Hi again, thanks for the comments on trying to disclose all of the facts. I am answering questions in two places in this forum. There is another thread as well on the house "Ask the Owner".

As far as lease renewal, here is what I said in that thread:

" I don't believe there will be any problem getting a new 10 year lease. I would not buy the house if there was not one nor should anyone else. It will be all about negotiating and paying the transfer fee I spoke of in my prior post."

And so you don't have to search for that thread and the prior referral when asked:

"If the lease is not renewed, the investment is lost, is this correct?"

My responce:

"If you don't renew this lease, like any lease it would be canceled and the investment lost, yes. a) There is an option to renew the lease for another 10 years in the existing lease, however this is not legally binding in Mexico. b) While the lease contains no obligation to pay a transfer fee when the house is sold, the tradition is to pay a fee to the landlord. They always ask 10% but the fee should be much less. For example I paid $85,000 for the original home and paid a $2,000 transfer fee. When this is done, you will get a new 10 year lease.

After many years living full time in Mexico I can say that in my experience everything is a negotiation. I wrote a paper on what I think was going to happen with the land and the lease that you can view at http://www.jetiii.com/House/Land_Investment.pdf

I have just been informed that the camp owner is sick and in the hospital in Mexicali. While my prayers are with my old friend, just like with my own health, life goes on. You should read this paper in it's entirety and form your own conclusions.

Hope this helps,"

jtorres

Capt. George - 3-27-2008 at 12:14 PM

I was told that the only "legal lease" in Mexico is for a one year term only, and even that is questionable where a gringo is concerned???

What is the truth to this, anyone know, no guesses or opinions, facts please...

Roberto - 3-27-2008 at 12:19 PM

Quote:
Originally posted by Capt. George
I was told that the only "legal lease" in Mexico is for a one year term only, and even that is questionable where a gringo is concerned???

What is the truth to this, anyone know, no guesses or opinions, facts please...


I know for a fact that is not correct. The longest legal lease is ten years minus one day. Gringos may lease as well as Mexicans. "Renewal Options" are meaningless.

DENNIS - 3-27-2008 at 01:03 PM

And, to my knowledge, you can't write up a legal lease in a bar. They have to be composed by a notary.
Also, unless one is completly legal with immigration, one cannot enter into any kind of contract and expect it's protection.

Roberto is 100% correct.

bgp5740 - 3-27-2008 at 01:52 PM

While living in Baja for 7 years our company dealt with the sales of various properties in Baja and have actually had our Mexican attorneys check out what it would take to get out of these 10 year minus 1 day leases. If the person is a Mexican citizen or has legal status (FM3 or some FM?) the leases are nearly impossible to break unless there is a default.

While a lease reviewed and signed by a Mexican Notary (not anything like our U.S. Notaries, actually a special class of government approved attornies) is by far the best way to do anything in Mexico, it is not a requirement for leases.

As an example, a legal lease is necessary to get your belongings from the U.S. to Mexico (without paying taxes) and to use the Mexican Civil Court System. The lease referred to below has been reviewed and accepted by Mexican Immigration, reviewed by a Mexican Attorney and used with our FM3 to show status in Mexican Civil Courts, both State and Federal. It WAS used and approved to bring in all of our furniture and other items duty free by Mexican Immigration and in a civil case that went through all four levels of Mexican Courts right up to the high Federal Court.

Basically Mexican Contracts with Americans (all of then) need to be in Spanish and English, signed by all parties and must have at least two witnesses. A copy of such a lease available at the house site in http://www.jetiii.com/House/Land_Investment.pdf (at the bottom).

Terry28 - 3-27-2008 at 03:53 PM

Bgp5740,

You have obviously done your homework on this. I did the same and with the same results that you got...good luck you should have multiple full cash offers!!

Hook - 3-27-2008 at 04:05 PM

Bgp5740, I have to commend you. I dont think I've ever seen the level of disclosure you have provided on your property, between your website and this discussion.

I wish you good fortune on the sale.

Thank you Terry28 and Hook

bgp5740 - 3-27-2008 at 04:37 PM

Thank you both for your kind words. There is nothing to hide here. I have been very fortunate and have had very unique experiences while working and living in Baja. I started out trying to bring the first U.S. Software Company to Baja. This gave me about 6 straight months working with the Baja Norte Department of Economic Development. I have been lucky enough to have been invited to visit and speak at most of the collages in the State including the Southern Hemispheres Science Center Cisesi (I think that is the spelling).

When the .com crash came I didn't want to leave Baja so I got involved with numerous building developments, some just with early internet sales right up to starting with undeveloped land through the entire sub-division process and on-the-ground sales.

The biggest problem that I have found in Baja is how rumors that are based on, well thin air I guess, get started. Things are as they are, why can't people tell it that way and/or say I don't know when they don't.

Anyway, I am happy to answer any questions and thank you again for the compliments. As I am freezing in Massachusetts it warms me up just remembering Baja.

jtorres

surfer jim - 3-27-2008 at 04:53 PM

Well , this is quite a change on the internet....dealing with facts rather than speculation or gossip :o.....maybe the start of a new trend...who knows...:?:

Come on NOMADS ...somebody get this and we can have a dedicated CASA de NOMADS to go visit....:lol:

HotSchott - 3-28-2008 at 06:19 AM

People that come to this board thinking that there is some 'greater collective' knowledge are the only people that I know that are disappointed when they find out that misinformation and less-than expert opinion are regularly exchanged here. What started out as a group of friends exchanging stories about their Baja travels and experiences has grown into something else along the way.

These days, the same group of people seem to dominate the conversation with mostly negative and synical commentary about their perspective on the world at large. So much has changed in the world and Baja and the rest of Mexico. I know I get drawn into seeing mostly the negative side of things as well.

I guess the truly interesting stuff has all been discovered and done. The newcomers 'bill of rights' does not exist. Instead of sharing anything, this place has become a monument to protectionism where any event or description of someone's 'sacred spot' will get you crucified in words. Maybe the internet has actually done more harm than good by making information available to the wrong people. Who are the wrong people? Have they been going to baja for a long time?

It seems like there were more of the right people a while back...At the end of a dirt road that so few knew about. Talking and sharing positive experiences by the light of a warm fire. Things sure have changed.

cactivilla - 7-6-2008 at 05:53 PM

Warning--Check with Campo owner prior to purchase, we have lost money and time on ownership of this house, campo owner will work with you if he likes you and offers a Lease in Spanish only, he only considers 10% of 200,000 with increase in lease and payment for back taxes of $5000.00 required to pay before new lease that may be available. Please post if any question about this.:no:

CaboRon - 7-6-2008 at 06:13 PM

Note: If the lease were not in Spanish, it would not be legal.

Chamaco - 7-6-2008 at 09:27 PM

um...............hows your heart condition?

surfer jim - 7-7-2008 at 08:11 AM

I was wondering what (if anything) had become of this.....

cactivilla - 7-7-2008 at 11:13 AM

We were going to be the new owner of this house until the conversations with the campo owner/son turned sour as to his request for the cash only for lease and fees. In response to CaboRon the Lease should be in Spanish as well as English, which he would provide only in Spanish if he would provide at all. My guess is the house is either going to next bidder(s) or up for Sale---It is my intention for the next buyer beware if money is of value.

rts551 - 7-7-2008 at 05:15 PM

I don't understand. What is the problem with cash only for the lease? You could have it translated on your own?????

fulano - 7-7-2008 at 05:29 PM

Quote:
Originally posted by rts551
I don't understand. What is the problem with cash only for the lease? You could have it translated on your own?????


I'm not sure either of you understand. In Mexico, only the signed original lease -- in SPANISH -- is the operative legal document. A signed translation of the lease -- in ENGLISH - would have no legal effect in Mexico. If there was a discrepancy in the wording between the Spanish lease and the English lease, the English wording would have no legal weight...inadmissible in court.

The Mexican landlord is correct in his position. If I were a landlord, I would not want to have two different versions of a legal document floating around. I used to run a business where we were required, by law, to have finance contracts in English and Spanish. We put wording in the document that said the English version is the contract and the Spanish version is just information and is not a binding part of the contract.

If you are not a lawyer, you probably cannot appreciate the problem of having two different documents, both claiming to be "the contract."

[Edited on 7-8-2008 by fulano]

cactivilla - 7-8-2008 at 09:34 AM

Fulano, you may be correct regarding the Lease, although there was more to this conflict than the lease, which we did arrange to get a translation of the lease when we were moments to completing this deal. Would you have paid over Seventeen Thousand plus (USD) more for this lease over what you had been expecting to pay?? My guess is the campo owner wanted this house for himself and was very defensive with each call made, he changed the amount of fees each time we talked to him. Whomever agrees with this arrangment may have a disagreement on anything with the campo owner while living in this home. If that is what you are willing to do, go for it.

fulano - 7-8-2008 at 12:06 PM

Quote:
Originally posted by cactivilla
Fulano, you may be correct regarding the Lease, although there was more to this conflict than the lease, which we did arrange to get a translation of the lease when we were moments to completing this deal. Would you have paid over Seventeen Thousand plus (USD) more for this lease over what you had been expecting to pay?? My guess is the campo owner wanted this house for himself and was very defensive with each call made, he changed the amount of fees each time we talked to him. Whomever agrees with this arrangment may have a disagreement on anything with the campo owner while living in this home. If that is what you are willing to do, go for it.


Well, I'll tell you cactivilla, I would never enter into that deal under any terms. No matter what you think you had, you would have had absolutely nothing but a very subordinated position that could have been wiped out at any time. There's probably a whole world of things you don' t understand. If, for instance, the campo owner had some debt on his property and did not pay it and was foreclosed, your lease would have been wiped out. It is subordinate to any secured debt on the property. It is also subordinate to any property tax defaults. It is also subordinate to any claims of the heirs of the father as to who inherited that land (and that is a very common thing in Mexico).

Bottom line, that lease would have had all the substance of a fart in a windstorm. Sometimes the best way to double your money is to fold it and put it back in your pocket.