frequently asked questions
Q . Why do I need to hire a consultant like Doug Jones if I already have a real estate agent to assist me?
A. Let me begin this answer with a couple of questions. Are you aware that contracts are not standardized in Mexico? Since the real estate commission is paid for by the Seller, who is going to get preferential treatment? This is not to say that your real estate agent isn't looking after your best interests, but any contract can be writen to either favor the Seller or the Buyer. The sooner you can get Doug involved, the better. Doug has loyalty to only one party in the transaction and that is YOU, his client.
Q . If my home is less expensive than someone else buying a more expensive home, why do you charge me the same consulting fee as for a more expensive property?
A. The process is the same for any real estate transaction, and potential problems can crop up for a lesser priced property as often as for a higher priced property. Doug's fixed fee is fair and will likely save you money that you would have otherwise paid out had you not had his watchful eye looking out for you. You will also know exactly how much you will be paying for this consulting service BEFORE you begin your transaction - there will be no additinal fees, nor a higher bill than you initially thought it would be. Four eyes are always better than two - especially when there is additional wisdom overseeing the entire transaction, and you know EXACTLY how much this consulting fee is going to cost you.
Q . If I were to hire a Buyer's real estate agent, how much can I expect to pay?
A. This varies, but it is usually in the range of 3% of the purchase price - usually to be paid by YOU, the Buyer. Of course the Buyer Agent will assist you in finding the right property, which is something any agent can do that is not specifically a Buyer's agent. If you want a recommendation for good real estate agents in the area of Mexico you're interested in, Doug is happy to give you a list of trusted agents he has worked with through the years. Just as in Canada and the US, some agents are better than others and it's best to work from a list of recommended agents.
Q . What if I'm not able to pay cash for a real estate property in Mexico?
A. There are limited options available for mortgage loans in Mexico. Seller financing or an owner carryback may also be an option. When a debt instrument is placed on the deed, it requires very specific contract wording and a different type of fideicomiso/bank trust that is not available through most of the banks in Mexico. Doug has had many years of experience with these types of transactions and will guide you through the steps necessary to complete the transaction. If you are looking for a mortgage loan vs. seller financing, Doug will assist you with this as well.
Q . Is it possible to purchase a real estate property in Mexico through a US LLC (Limited Liability Corp) to save on Mexico tax liability?
A. This is a strategy which some purchasers choose to use. This has been done for years, but laws in Mexico are always changing and there is no future guarantee. When laws change in Mexico, there is usually no grandfathering. The law of the land is the same for everyone no matter what the laws were at the time of your purchase. This is part of the expertise Doug can provide for you should you choose to engage his consulting service. He will also recommend legal service providers who know what they're doing and will recommend how to structure the LLC. There are always different options to consider.
Q . Why have you created a separate consulting division of Mortgages In Mexico, LLC?
A. Through the years I have been recommended by colleagues to assist cash-buyers through the buying process in Mexico. Since the availability of mortgage financing is currently very limited, most buyers must either pay cash or negotiate with a seller to carry back a Note. It is a relatively easy proposition to close a seller-financed transation in Canada or the US. This is not the case in Mexico. "Foreclosure" in Mexico is not as straight forward and requires a specific form of fideicomiso, which very few companies will do. Mexico Real Estate Consulting is a more formalized approach to assisting buyers who want to purchase a property in Mexico, and as such has it's own unique presence to the buying public.