Realty Executives : beachfront communities

PUERTO PENASCO FEATURED IN HOUSE HUNTERS INTERNATIONAL

Realty Executives Puerto Penasco// Rocky Point — Sat, 09 Feb 2013 00:43:00 GMT

The popular HGTV television show, International House Hunters, visited our beautiful beach community, Puerto Penasco to film one of Realty Executives top agents, Dan Monroe as he sold a Phoenix couple their dream condo at Las Palomas Golf and Beach Community. The TV show featured several condo projects, the Princesa, the Sonoran Spa and Las Palomas, as the couple searched for the perfect family getaway for their two active boys. They were searching for a 3BR condo with beach views with amenities that would keep their growing boys busy. Incidentally, the boys have a special affinity for the Mexican beaches and seem to blossom in the sunshine and peaceful ocean waves. Dan does an exceptional job of finding the ideal condo that the family can turn into their dream getaway with a lovely huge patio, gorgeous ocean views, fully furnished and appointed, and still remain in their budget. The family enjoys the infinity pools, water slide, hot tubs, and fabulous beach at Las Palomas and loves to come down to Penasco to enjoy the friendly people, the terrific food, and Sea of Cortez' gorgeous beaches!

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Escape to the Beach for Labor Day

Realty Executives Puerto Penasco// Rocky Point — Mon, 27 Aug 2012 21:03:00 GMT

Looking for something fun for Labor Day Weekend? Rocky Point has some great condo specials for the whole family. Be sure to beat the heat and have some great times in Rocky Point. After a fun day of sun and sand, be sure and check out some great music at Changos and The Lighthouse. Saturday night at Las Palomas will feature stand up comedy from Gene Pompa. Hope to see you there!

FUN ACTIVITIES ABOUND IN ROCKY POINT

Realty Executives Puerto Penasco// Rocky Point — Wed, 11 Jul 2012 18:39:00 GMT

More and more activities to report here, south of the border. We finally have a movie theatre, just like the big guys. Of course, you don't want to spend too much time indoors, so there is more to do at the Sea of Cortez. Check out the Ecofun activity company, with a new huge boat to take you for snorkeling at Bird Island!! Or check out the catamaran at delmar charters, always fun. And of course, fishing trips with Captain Ray Ramirez are always the BEST. Need more info, just give us a call or send an email. Of course, we would be happy to show you some condos, still a perfect time to buy your own Oceanfront condo!

Penasco Palooza Saturday March 17th Featuring An All Star Lineup You Won't Want To Miss...

Realty Executives Puerto Penasco// Rocky Point — Fri, 17 Feb 2012 23:12:00 GMT

Penasco Palooza is sure to be a good time. This all star lineup is goin' to be rockin away just behind the Sonoran Spa Resort. Beautiful weather and great tunes is the perfect way to escape the daily grind. Accomodations are sure to book up quick so be sure to get in on the action before it's to late.

Upcoming Events in Rocky Point Mexico you wont want to miss...

Realty Executives Puerto Penasco// Rocky Point — Tue, 31 Jan 2012 17:50:00 GMT

Super Bowl Sunday Sunday Feb 5th

Don't miss out on some great tailgating for Super Bowl. What better way than to watch the big game next to the Ocean. You can either make your way to Don Julios for some great bbq or to Latitude 31 for some all Day Tailgating.

Taste Of Penasco Iron Chef Competition. Feb. 11th

Here is a great opportunity to sample your taste buds from many of the local restaurants. The event will be selling raffle tickets to raise money for local charities and will also feature some great local artists as well as music and entertainment. The event goes from 11-5 and will be held at Plaza del Camaron.

Puerto Penasco 2012 Carnaval Feb 17-21

Be sure to set some time to check out this fantastic carnaval kicking off on the 17th. Among some of the events will be a colorful parade right down the middle of Blvd. Benito Juarez. Its a great opportunity to check out some local fun and festivities.

Mark Mulligan to Perform Charity Event New Years Eve for the Penasco Childrens Foundation

Realty Executives Puerto Penasco// Rocky Point — Fri, 23 Dec 2011 18:11:00 GMT

He will be performing at Puesta del Sol Restaurant at Playa Bonita Resort Beachside. Proceeds will go to help the Penasco Children Foundation. Be sure to check out the great event for some dinner and dancing. Tickets are $50 per person.

To puchase tickets go to:

http://www.seasidemexico.com/pcfevents/

Rocky Point Gift Guide 2011

Realty Executives Puerto Penasco// Rocky Point — Mon, 05 Dec 2011 19:47:00 GMT

Need some ideas for the holidays? Rocky point is always full of fun and creative ideas. With endless shops, your sure to find the right gift for anyone. One of the best ways to shop in Rocky Point is right from your lounge chair. Just hang out at the beach and let the vendors come to you! Be sure to stop by Old Port and see the new downtown facelift. Want the ultimate gift, How about your own oceanfront retreat for the holidays. What better gift than fun and memories all year round.

Happy Shopping and Happy Holidays

Mark Mulligan coming back to perform in Rocky Point (Puerto Penasco) Saturday December 10th

Realty Executives Puerto Penasco// Rocky Point — Mon, 05 Dec 2011 19:35:00 GMT

Come check out the awesome sound of Mark Mulligan this Saturday December 10th at the Sonoran Sky Resort Beach Bar. The concert is open to the public so be sure to stop by. If you are unable to make it, he will also be in town on December 14th, 29th, 30th, 31st. After that he won't be back in town for quite some time. Be sure to check out Mark Mulligans Calendar for more info and times. Its sure to be a blast

CONCERT All Stars from Steve Miller, Boston, Three Dog Night, Aerosmith October 15, Rocky Point Mexico!!

Realty Executives Puerto Penasco// Rocky Point — Tue, 13 Sep 2011 17:42:00 GMT

Puerto Penasco is the place to be for Rock Music on October 15. Hear music from your favorite Rock Groups of all time, from original artists who were members of the groups. Enjoy the gorgeous Mexican beach during the day, and Rock the night away with your Best Rock Moments. Tickets are available at a terrific price, and proceeds to charity!! http://penasco-palooza.ticketleap.com/steve-mccarty-band-penasco-palooza-beach-concert/

STEVE McCARTY WITH THE HITMEN ALL-STARS! Steve McCarty- Singer, Songwriter, Guitarist, Formerly of – Steve Miller Band, Steve McCarty Band Curly Smith- Lead Singer, Drummer, Producer, Formerly of – Boston, Jo Jo Gunne David Lewark- Lead Guitar, Formerly of - Eddie Money, Sammy Hagar Terry Anderson – Sax, Acoustic Guitar, Vocals, Formerly of - Tower of Power Paul McDermand – Steel Drums/ Marimba, Formerly of - Natalie Cole, The Moody Blues, Esteban Gary Moon – Bass Guitar, Formerly of - Night Ranger, Three Dog Night, The Pack Jimmy Crespo – Lead Guitar, Songwriter, Producer, Formerly of – Rod Stewart, Aerosmith Ro.Jo – Rocky Point’s Local Favorite! Riband – New Addition to the line-up! Set List (Steve Miller Band) Fly Like an Eagle, The Joker, Take the Money and Run, Swingtown, Rock ‘n Me Baby, Jetairliner, Wild Mountain Honey (Boston) Amanda, More Than a Feeling, Foreplay, Smokin, Peace of Mind, Rock ‘n Roll Band, (Aerosmith) Dream On, Walk This Way, Crazy, Fallen Angels (Sammy Hagar- Van Halen) Love Walks In, Winner Takes It All

Don't forget when you are in Rocky Point to enjoy the terrific shrimp and seafood, swim with the sea lions, and of course, buy a condo from Realty Executives!!

Cruise ships coming to Rocky Point

Realty Executives Puerto Penasco// Rocky Point — Thu, 23 Oct 2008 06:11:00 GMT

Sea of Cortez cruises to depart new Rocky Point port

Puerto Peñasco foresees 200 sailings a year as it plans massive port facility

By Gabriela Rico

Arizona Daily Star

Tucson, Arizona | Published: 10.22.2008

Cruising the Sea of Cortez will be another draw to Puerto Peñasco, where construction on a massive port to accommodate cruise ships is set to begin next year.

"The home port will be similar to those in Miami or San Diego," said Epifanio Salido Pavlovich, director of the Sonora Office of Tourism.

He said Holland America — which last week made its inaugural sailing to the new Port of Guaymas — has agreed to sail four- to seven-day cruises originating and ending at a home port in Puerto Peñasco, with two to five stops along the route.

Salido said the port will be ready to receive its first ship in about three years.

When the port project is finished within about five years, as many at 200 cruises a year could be offered from the Puerto Peñasco cruise ship terminal, Salido said.

He said officials plan to approach other major cruise lines to complement the service offered by Holland America. The project is being funded by Mexican government and private investors.

Initially, the state of Sonora is spending about $15 million to jump-start the project, said Jesus Fontes, planning director for the state tourism agency.

He said the total cost has not been calculated, since the design has yet to be developed.

The cruise-port plan comes as other transportation improvements are under way.

The new Puerto Peñasco airport is expected to open in the spring, and the highway to San Luis Rio Colorado later in 2009, Salido said.

Improvements also are being made to the Lukeville Port of Entry, the re-entry point into the United States from the main road to Puerto Peñasco.

Construction of a private hospital, catering to U.S. baby boomers, is also under consideration.

● Contact Gabriela Rico at 573-4232 or grico@azstarnet.com.

Buyer's Checklist - May 2008 version

Realty Executives Puerto Penasco — Fri, 18 Apr 2008 01:03:00 GMT

General Questions Anwer(s)

Are ownership papers available from the owner?

Is the property in the restricted zone?

What does that mean?

Is the property part of Ejido Land?

What are the special risks?

When I get a fideicomiso (Bank Trust) do I own the

property?

Is the contract written to protect me?

Can I influence the contract?

Can I get a deed or title on the property?

Real Estate Resale Questions Answer(s)

How is the property owned?

Deed, Title, Bank Trust, Private Contract, LLC, Mexican

Corporation

Does the property have clear title?

Does the property have liens or lawsuits preventing title?
Is the property held free and clear or debt?

Are there city or state bylaws that limit ownership or usage
Is there a condo regime? What are the restrictions?

Are there HOA (Home Owners Association) rules?

How do they impact your usage?

New Development Questions Answer(s)

Is the project an idea on a brochure?

Are building and sales permits in place?

What stage of development is the project in?

Does the project clearly describe what you are getting?

Is your deposit protected in an escrow account?

Is the letter of instruction favorable to you?

Is the purchase reservation, offer to purchase, promise

of trust agreement, and other legal documents written to

protect you?

Are there warranties and consequences if the performance

expectations are not met?

How is the project financed? What percentage of the financing

comes from the developer, investors, financial institutions

buyers?

If your funds are used for promotion or construction are they

protected if commitments are not met?

If the project fails to be adequately funded, are the investors

left with anything real?

Does the developer hold performance bonds that are valid

and payable to the investor/buyer against contract warranties?

Does the developer have a good history of building similar projects?

What does the developer have to lose if the project fails?

See the blog section for the checklist

Uncertain about investing in Mexico, Part II

Realty Executives Puerto Penasco — Fri, 11 Apr 2008 21:40:00 GMT

We understand…and we’re here to help

Wayne Corcoran

Chief Operating Officer

Realty Executives Mexico

My article, published in the March 2008 edition of the Rocky Point Times sparked numerous conversations with fellow real estate professionals about how we can help buyers reduce their risk when it comes to purchasing real estate in a foreign country. Real estate is generally one of the safer investments you will make, but there are numerous risks involved in any purchase transaction whether you are buying previously owned properties or buying into a new development. The risks are naturally higher in foreign countries where you don’t know the laws or speak the language.

I was asked to discuss the article at our AMPI (Asociacion Mexicana de Profesionales Inmobiliarios) meeting. AMPI is the professional real estate association that frequently meets to discuss and try and solve real estate issues and concerns. I received support and input from fellow members who offered to help me come up with the Buyer’s Checklist (to your left). I have taken the questions from last month’s article, added a few more, and organized them into a chart that agents and buyers can use alike. The checklist is designed for you to copy (or cut out of the paper) and carry around with you when you decide which property or properties you are interested in purchasing. Each month the list of questions will, no doubt, be added to as I receive additional input from real estate professionals in Rocky Point. On our website, at www.realtyexecs-mexico.com, you will find the articles printed in the RPTimes in chronological order as well as the latest Checklist. We want all buyers to be educated, ask the right questions, and know they are getting the right answers.

This month’s article will focus on ownership and title risks, which seem to be the most written about topic, and one that still remains a mystery to the majority of buyers. Next month’s focus will be on financial related risks.

Let’s start with the first question on the checklist, and one that was listed last month: “Can the government take my property away?” The simple answer is no, because in 1973 a Constitutional Amendment, known as the Foreign Investment Law, allowed foreigners to purchase real estate anywhere in the country of Mexico except in the “restricted zone”. And, in 1993, the Constitution was amended again allowing foreigners to purchase real estate within the “restricted zone” by means of a Fideicomiso (Bank Trust). Foreigners can also own property in the restricted zone through a deed, not a bank trust, but a Mexican corporation must be formed…more about that later. Now, where exactly is the “restricted zone”? It is any area within 100 kilometers (64 miles) of the International Border and/or within 50 kilometers (32 miles) from the coastline. (Yes, Puerto Peñasco falls within this zone because we are on the coastline.)

The flipside to the above question (a “yes” answer) would be in cases – just as in the United States and Canada – where the Mexican Government enforces imminent domain. Southern California springs to mind when talking about imminent domain where entire neighborhoods have been demolished and residents forced to relocate to make room for more interstates.

The majority of the population believes and fears that Mexico is not as stable as Canada or the United States, but the fact is that Mexico is now in its 3^rd term of very stable government rule with foreign-owned property rights built right into their Constitution. Few people know that real estate is the major industry that underpins the Mexican economy and each President is careful to help it expand. And it is also common belief that foreigners can only “lease” land in Mexico for 50 years, but not actually own it, which is completely false.

Since you are looking to purchase property in Rocky Point, which is within “restricted zone”, I’ll start with the Fideicomiso (Bank Trust). The Fideicomiso is set up through a Mexican bank for a period of up to 50 years and can be renewed for an additional 50 years. With a bank trust in place, the buyer can lease, sell, transfer or even will the property to an heir. (In order to acquire the property, the purchaser must obtain a permit from the Ministry of Foreign Affairs. This is a permit which basically states that you are qualified in Mexico to go ahead with your purchase.) At the end of 100 years, the property can be sold and another bank trust can be established, this can also be done at any time during the 100 years to renew the 100 year time. Bank trusts, in their present form, have only been in place since 1993, so it is expected that regulations and rules will improve by the time the 100 year mark rolls around. Some even speculate that a direct deed will be issued to the owner, but that is not the law at the present time. You might be asking, “What if the property is passed down from generation to generation? Does the heir that owns the property in 100 yrs. have to sell it?” Right now, they just basically have to sell it to themselves – a formality so a new trust can be issued. Like I said, the process will most likely change many times before then.

The Fideicomiso (Bank Trust) has 3 elements to it:

1) Fideicomitente (Trustor or Settler) which may be a physical or legal Mexican National (person) who is the owner of the property to be placed in trust. (A “physical” Mexican person may be a bank that is holding the bank trust.)

2) Fiduciario (Trustee) which, by law, may be only a credit institution that holds the raw real estate. (The bank is known as the trustee and holds the deed (escritura) for the person(s) purchasing the property (beneficiaries.)

3) Fideicomisarios (Beneficiaries) who are the legal or physical foreign person(s) who are the beneficiaries of the trust and who obtain the use and benefit of the property. The beneficiary has all ownership rights to the property and may sell, lease, mortgage, or will their property as desired under the rules of the law.

I have given you the two ways foreigners can own property within the restricted zone – by having a deed or a bank trust - so why are we seeing other variations of “ownership” such as private contracts or ownership held through LLC’s?

Private Contracts were a necessary purchase vehicle until a few years ago when Fideicomiso’s (Bank Trusts) were limited to full ownership trusts – meaning that if the property was not paid in full, a bank would not issue a trust. Even though bank trusts have been issued since 1993, banks did not feel comfortable, or perhaps not had the means to carry a mortgage on property purchased by foreigners. In the past few years however, most banks have started to use “Warranty Bank Trusts”, which have a high degree of legal flexibility and can handle third party debt (carry the balance of the loan in other words).

Private Contracts were (and are) used to expedite the sale of property whereas establishing a bank trust takes longer and costs more money. With a private contract, the buyer and seller agree to establish or transfer a bank trust. The Contract transfers ownership rights from the seller to the buyer, but does not legally transfer the documented ownership in the Public Registry. Because the transfer/sale is not recorded in the Public Registry, the Capital Gains taxes are not collected. (Yes, you must pay Capital Gains and transfer taxes in Mexico.) And Capital Gains liabilities need to be calculated to ensure the buyer does not unknowingly assume this tax liability. This is a problem that plagues many transactions as some buyers and sellers are not aware that they owe Capital Gains taxes. In most cases a compromise is reached between the buyer and seller, but it is a very important issue you need to be aware of whether you are a seller or a buyer.

Private Contracts are still common practice as they save time and defer immediate costs for the buyer, but are still risky because the official title has not been legally recorded, therefore the previous owner still “officially” owns the property. In addition to being risky, the government has not been able to collect the appropriate capital gains and transfer taxes and the liability to the new owner increases over time – with or without their knowledge. The seller needs to sign off on the official bank trust documents when the buyer decides to establish one, but what if the seller is not available or is incapacitated, then what? This is a significant risk many owners currently face. This is one of many risk factors that can be solved if the seller grants Power of Attorney to a third party escrow company, OTP for example, then the seller will not have to be present to transfer ownership. Again, this is just one solution to many problems that occur when Private Contracts are used. There have been, and are, many cases where property has transferred between several owners without being registered in a bank trust. As I stated in my first article last month, you have to determine the risk level you are comfortable with and willing to take.

Now, with Warranty Bank Trusts available through the bank, Private Contracts are not required and should no longer be used. Real estate professionals should be warning their clients about the risks of using Private Contracts, and associations like AMPI, are considering discontinuing these contracts and recommending that buyers should steer clear of them. The short term savings are not worth the associated risks.

Limited Liability Corporations (LLC’s) are another way that buyers use to defer or avoid costs associated with real estate transactions. When property is held in a LLC, the sale of the LLC can be quick and easy to complete however, there is disagreement about LLC’s. In the U.S., an LLC is used to reduce liability risks and is very effective, but the legal system in Mexico is very different and the validity of LLC’s has been called into question. The disagreement where LLC’s are concerned is whether the sale of an LLC should be recorded in Mexico since the bank trust has name of the LLC registered and not the name(s) of the individual owners. However, some Notario’s (Notaries) say that, according to Mexican law, when the owners of an LLC change, the bank trust must be updated, and the sale must be recorded as a sale in Mexico. If you are buying an LLC that owns Mexican property, talk to a Notario to get the sale recorded and your bank trust updated.

The wisest and safest thing to do when purchasing property in Puerto Peñasco is to get a bank trust in your name as part of the purchase agreement. You simply cannot afford the long term risks associated with Private Contracts or the uncertainty of Mexican law where LLC’s are concerned. Besides that, you want to enjoy your time here on the Sea of Cortez, not run around from office to office and worry about whether you legally own your dream property.

After my discussion with AMPI members, and fellow real estate professionals, we thought it best that bank trusts, private contracts and LLC’s be covered first, since that is usually where most of the risk will start. Be sure to use the Checklist and contact me at Realty Executives at (602) 288-8649 if you have anything to add. If you cannot download the articles and checklist off of the internet (www.realtyexecs-mexico.com), give is a call and we’ll get you hard copies. AMPI is working to streamline the selling/purchasing process here in Rocky Point and to make sure that each and every client has the facts and full disclosure.

Next month’s article will mainly focus on financing risks, as this is another very important issue that needs to be discussed, and I will also answer more questions from the checklist if space allows.

Wayne Corcoran MBA PMP, is the General Manager/Broker of Realty Executives in Puerto Peñasco, Sonora, Mexico and the Chief Operating Officer for the master franchise Realty Executives Mexico. He brings over 30 years of risk based business management to the firm and can be reached at (011-52-638)

Rocky Point Buyers Market Beckons

Realty Executives Puerto Penasco — Fri, 21 Mar 2008 21:46:00 GMT

Rocky Point Buyers Market Beckons

April Report from our AMPI President

Kent White

Realty Executives

A.M.P.I. President

In the ever cyclical world of economics we certainly see the seasons change. This is evident especially as it refers to real estate. Many people, sitting there with their glass half empty continue to refer to our stage in the cycle as the Fall or Winter. However, as we have seen by recent indicators, the excitement is here. In Rocky Point’s market, those who look past what the press from the north tells us, continue to do well. Agents and buyers alike that don’t see the doom and gloom see the potential of a shifting market. Let’s face it, as it applies to Real property there are two markets, buyer’s markets and seller’s markets. Sure we saw some hard times for awhile, this is what is called the correction period. We needed it. We had a fever during the initial boom that laid the foundation for our long term growth period. Economists still see Puerto Peñasco as one of the fastest growing, and long term growth destinations in Latin America. All of the studies done on both sides of the border by different experts on our specific market agree we are destined to be an international powerhouse. None of them said the chart would be a straight upward line. With the same logic, we should not expect to follow the same curve as the United States. We are a second home community and an investment community. Many of the baby boomers with the notion of retirement in their sight still see the need to invest, and this is a great time to invest as there are many deals to be found. Many people that have the fortitude to buy a second home are not affected by the issues that have used up so much ink in the papers lately. And some that overbought need out. Rocky Point’s resale market right now has numerous condos, houses and land listed at below their true value. This is not to say that everything is priced to sell, but with proper representation and patience, now is a great time to learn what is available and understand that there are special deals popping up everywhere.

Resort communities do not reflect the same dynamics found in markets of need.

Many of us that took the ride for several years understand the market was in its infancy, as a highly attractive resort community with beaches that hold their own against any comparable destination. In a booming economy both buyers and sellers are happy, with fresh new products unveiled monthly. Unfortunately, because the wave was so fast and furious many surfers saw the wrath of the wave’s downturn. The wave was building so fast and developers saw no reason to level out prices since the buyers kept coming. Some less rooted investors that may have gotten in late have reasons to get out. This created the buyers market that many savvy investors are taking advantage of now. The excitement is here, and deals are being made. Right now the resale market is showing huge promise, and professionals in the know are feeling the buzz.

When looking at the big picture one must only look at what Rocky Point has coming, to understand the future is just beginning. This is obvious by the time and money the officials are investing here. Janet Napolitano and Arnold Schwarzenegger and all of the other governors from the border states of the US and Mexico did not choose to meet here because it was convenient. The Coastal Highway and the Airport are soon to be a reality. The Municipality is paving more roads than ever before. The Marriott Hotel group has introduced The Peñasco Bay Towers, a 28 story 265 room four diamond hotel. This alone would certainly add to the international attention.

Recently, Sonora authorities and Federal authorities met with the decision makers of several cruise lines, including Carnival and Holland America to fine tune the plan for future cruise lines to include Puerto Penasco in their itinerary. Epifanio Salido Pavlovich introduced the proposed Cruise ship route through the Sea of Cortez, which includes the creation of a terminal in Puerto Peñasco.

"Soon we will have the visit from the delegation and the Florida Caribbean Cruise Association for Puerto Peñasco to revise the draft as Home Port and Guaymas to see the progress of infrastructure that is taking place at this time, as well as tours yet to be defined, and training for health care providers in the locality," he explained.

With all of this and so much more, we will be a preferred destination for tourists and investors alike for many years to come. The Spring is here, and we are still in our infancy. This market will not be crashing anytime soon. In fact economies not scared by the media have continued to look for investments in this paradise some of us call home. Canadians and many Mexicans from around the country as well as those living in the US are looking this way for the bargains. It is important for investors to find reputable representation that will educate them through the research stage as there is a wide variety of options; Good and bad. In a time considered to be a buyers market there is a surplus of inventory. The available condos, homes and land are so diverse that you need a seasoned representative. There are plenty of agents in this town with credentials you can trust. If an agent is an AMPI member, for example, he or she is a state recognized, licensed agent. The most important thing that a buyer or seller gets with an AMPI affiliated agent is accountability. This accountability will make the difference between you looking back and knowing you found one of those bargains, or one of the many less than adequate outcomes that happen to would be investors everywhere. It would be irresponsible to stress that if one doesn’t jump now they’ll miss the buyers market. But it could also be wrong to think that this market is going to keep sliding for a long time. Even in the US market of today savvy investors are currently buying, hence the term buyers market.