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Author: Subject: Financing for Mexican properties?
pauldavidmena
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[*] posted on 12-2-2021 at 01:32 PM
Financing for Mexican properties?


I had always thought that the terms for purchasing property in Mexico were strictly cash. This article from Coldwell Banker Riveras in Cabo San Lucas, however, addresses getting a mortgage in Mexico. I had never heard of this before, and wonder if it falls under the category of "if it sounds too good to be true..."



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phmilo
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[*] posted on 12-2-2021 at 01:42 PM


I looked into this a bit when we bought, but there was a lot of extra legal and the rates weren't that great, so in the end it just didn't make sense. We were looking at a different program, but I suspect CBR is similar - There are some tremendously deep pockets of money here and there that are looking for a return (guaranteed). I think they figured out a way to secure a foreign property that gave them an avenue of recourse if the loan were in default.

CBR says they report interest in the US. I'm sure that's true, but I bet it's more like standard 1099 interest, and you would be hard pressed to deduct it as a residence housing interest payment.
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[*] posted on 12-2-2021 at 05:13 PM


I know several Mexicans who have owner financed property sales [to other Mexicans] and had it turn into a nightmarechitstorm when the payments quit.


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[*] posted on 12-3-2021 at 07:10 PM


Another option is to hold the property as a corporate asset and sell interest only dividend shares.



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