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Tifosi
Junior Nomad
Posts: 54
Registered: 7-6-2005
Location: Anaheim
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Mood: Baja on my mind
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Financing in the US for Baja property
I noticed that the forum banner advertises a few US based mortgage companies. As I write this I am looking at an ad for Platinum Capital Intl.
wefundmexico.com
I was wondering about the validity (for lack of a better word) of these companies. I would love to buy property and begin the process of my dream
vacation home, but I don't want to pull the equity out of my US house for a Baja house. I'm young enough to manage a 2nd mortgage, but not sure if it
is the way to go. Do any of you experienced Baja buyers have some advice?
Thanks .... Tifosi
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Skeet/Loreto
Ultra Nomad
Posts: 4709
Registered: 9-2-2003
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From an old Fart:
Do not pull the Equity outof your House to buy another House.
If you are going to use that Equity use it to make you money!!then use the money you are making to buy your,House in Baja!!
Skeet/Loreto
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JZ
Select Nomad
Posts: 10583
Registered: 10-3-2003
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Interest rates, the duration of the term, loan origination fees, and the amount of cash you need up front will be a good bit more favorable on a 2nd
mortgage vs. direct financing.
[Edited on 3-1-2006 by JZ]
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TMW
Select Nomad
Posts: 10659
Registered: 9-1-2003
Location: Bakersfield, CA
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Skeet, I think a lot of people owning homes along the coast used their home equity to buy houses here in Bakersfield. I see lots of out of town phone
numbers for rentals after they sold. It has certainly driven housing prices up and up. What was selling for for $130,000 3 years ago is now selling
for $350,000 or more.
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Skeet/Loreto
Ultra Nomad
Posts: 4709
Registered: 9-2-2003
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Right TW. Same up at Dos Palos:
What the yougsters need to understand is that if they take thir Equtyand spend it all, then they will be paying for the Rest of their Life until such
time as their Former Homes value goes up enough to make up the difference.
In Baja, the borrowing of money in the States to buy down there is ZO.K. but be real careful that your choice of companys here in the States.
Many people are max out on their Credit cards, borrow on their Equity to pay them off, then start over again. Skeet
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wilderone
Ultra Nomad
Posts: 3824
Registered: 2-9-2004
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http://www.gringogazettenorth.com/7.htm
Don't invest more than you can walk away from. And if you mortgage your home with an equity loan, you'll be stuck with it forever or until you sell.
Regardless, you've spent the money. In Baja you don't own the land and your title is a leasehold - easy to walk away from if everything turns sour.
Destruction by weather, faulty title, family landholder disputes (see above), dubious Mexican laws and municipal government politics, powerful Mexican
developers, construction defects. The BAja development arena is volatile - there's a lot at stake for developers and small town Mexicans and it's
turning them into lord knows what. I wouldn't put good money (US property equity) in Mexico with so much at risk. You can get a time share and trade,
buy a cheap trailer, rent a couple months a year, travel all over Mexico - not just one small town etc., for no risk at all. I went to a vacation
property presentation which sounded like a good compromise in property ownership and travel. You buy 4-12 weeks which can be used at any of the resort
properties owned by the corporation, including their properties in Mexico and Europe and elsewhere in the world. The weeks you buy are transferrable
to your heirs, just like real property. There is an element of gamble in buying RE in Baja and Mexico and if you're a gambling man, go for it.
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bajajudy
Elite Nomad
Posts: 6886
Registered: 10-4-2004
Location: San Jose del Cabo,BCS
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You cant retire into a time share.
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osoflojo
Nomad
Posts: 378
Registered: 10-29-2004
Location: c.s.l./b.c.s.
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The Gringo Gazette only telling part of the story as usual When they PNG'ed Carrie Duncan they should have done the same to the rag(if that is
possible). Horror stories abound proliforated by the uninitiated. Property ownership in Baja or elsewhere in Mexico does not carry the kind of risk
insinuated here if you pay attention to the laws, take your time and do your homework. I am sure that just on this board alone there are way many more
"sucess" stories of land ownership than "horror" stories.
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bajajudy
Elite Nomad
Posts: 6886
Registered: 10-4-2004
Location: San Jose del Cabo,BCS
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Success here
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JZ
Select Nomad
Posts: 10583
Registered: 10-3-2003
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Hmm, advice coming from a fellow promoting time shares. I think I'll pass on that. Osoflojo has the more credible side on this one. Do your
homework and you will be ok. Don't buy something for a 1/10 of its value and be surprised later when there are issues.
[Edited on 3-2-2006 by JZ]
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Dianamo
Nomad
Posts: 182
Registered: 12-27-2005
Location: SF Bay Area, CA when not in El Cardonal
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Mood: ...still in Baja
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I'm not a gambler, but
I do love Baja. I have been following the Baby Boomers my whole life. I have had to pay so much more for everything, because I am at the end of the
boom! This time, I feel so strongly that Baja is where I want to retire, that I am choosing to look at my "purchase" in Baja as simply transferring
retirement assets.
If I lose, at least I tried. I can't even think about buying anything near the coast in CA.
 I like the
weather and the people in Baja better than at home anyway! It's worth the risk to me!
Hope I'm right!
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eetdrt88
Senior Nomad
Posts: 986
Registered: 2-20-2005
Location: Az/Ca/Baja
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the post at the top...
makes me wonder why people are so intent on building a home when there are so many already there to be had and some for a great price...I got my place
down by Bahia Santa Maria by simply going down and talking to people in the area,I found a place I wanted and then waited around for a while,ended up
getting it for about half of the original price...although it is just a 5th wheel trailer with a shade cover and deck as well as plenty of room to
build more it fits my needs nicely and if I ever do decide to look into a bigger place further south I would do it pretty much the same way...before I
got this place I tried to get help from realtors by e-mail and phone calls to no avail so I quickly gave up on that and as far as mortgage payments
go I would say that Cash works wonders in Baja
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Cincodemayo
Senior Nomad
Posts: 725
Registered: 3-7-2005
Location: Pacific NW
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Timeshares or cheap trailers? PLEEEEEASE.
Don\'t get mad...
Get EVEN.
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comitan
Ultra Nomad
Posts: 4177
Registered: 3-27-2004
Location: La Paz
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Mood: mellow
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Cinco
When your living in the trailer and you run out of water you can move to where there is water.
Strive For The Ideal, But Deal With What\'s Real.
Every day is a new day, better than the day before.(from some song)
Lord, Keep your arm around my shoulder and your hand over my mouth.
“The sincere pursuit of truth requires you to entertain the possibility that everything you believe to be true may in fact be false”
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Cincodemayo
Senior Nomad
Posts: 725
Registered: 3-7-2005
Location: Pacific NW
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Comitan...I thought those were "Mobile" Homes
Don\'t get mad...
Get EVEN.
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comitan
Ultra Nomad
Posts: 4177
Registered: 3-27-2004
Location: La Paz
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Mood: mellow
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You mean the L.B. home you bought.
Strive For The Ideal, But Deal With What\'s Real.
Every day is a new day, better than the day before.(from some song)
Lord, Keep your arm around my shoulder and your hand over my mouth.
“The sincere pursuit of truth requires you to entertain the possibility that everything you believe to be true may in fact be false”
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Mike Supino
Nomad
Posts: 351
Registered: 10-16-2002
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| Quote: | Originally posted by comitan
Cinco
When your living in the trailer and you run out of water you can move to where there is water. |
Maybe that is the solution to Loreto Bay.
Therianthropic
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The Sculpin
Nomad
Posts: 401
Registered: 9-3-2002
Location: Back in the Saddle
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Mood: Riding into the Sunset, looking for a sunrise.
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I have a gringo friend who "retired" decades ago in baja. Bored, he ended up buying rentals down there and became quite successful. He's re-invested
some of those profits back in US real estate!
Go figure!
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Cincodemayo
Senior Nomad
Posts: 725
Registered: 3-7-2005
Location: Pacific NW
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Comitan...
House not trailer. The view will be amazing. Not concerned about H2o as all our ?'s were answered very well and that was my main concern.
Don\'t get mad...
Get EVEN.
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Skeet/Loreto
Ultra Nomad
Posts: 4709
Registered: 9-2-2003
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Think, Look, Investigate!!
After living in Baja fulltime for 18 years, thelast 10 buying and selling Property to americanos, I had not troubles at all!!
When virginia and I were thiking about leaving Loreto we spent some time looking at other Places,for us one of those was La Ventana-at that time lots
were $20,000- now they are $300,000.
If we went back to Baja we would go to La Paz, find a small Home that we could buy direct from the mexicano owner, then redo to fit our needs.
Those types are still around.
any property on the Beach is going to be very,very espensive.
If you go to a time share you are going to be Wall t Wall with Americanos, I would a 1,000 times rather be in La Paz with Mexicanos.
if you are adventureous then I would suggest you take a Panga trip from La Paz to Ague Verde look at all the beautifull places that you can have with
out People, only yourselves ,a Mexicano or two, and isolation and Advenutre.
And if nothing above suits take a 4 wheel drive with a Camper and a Boat Top and Tent and go to the Pacific Side[take your own water till you find the
Wells};
Skeet/Loreto
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