Don’t leave your brains at the border.

            200 U.S investors lost 80 Million!  Crazy Right? 

            First, the Drive from Eugene to Ensenada is 1100 miles of freeway. It took $150 in gas, and a hotel in San Diego to get out of the rain, into the sunshine, ocean breezes and a completely different culture.  In hindsight, it was an easy drive to find myself in such a completely different world. 

            I came down here to explore the real estate market and to see what west coast snow birds find.  I had an opportunity to meet with a few realtors in the area.  On my second day in town, I met with Jose and Arturo at the Hotel Coral and Marina.  Jose and I spent the day on tour.

            17km from town is were the once prominent Baja Beach and Tennis club came to rest.  This had been a large development created for expats.  It was removed from the city, and had a gorgeous beach. The problem was the developer did not have legal rights to sell the land.  Folks were aware of the pending litigation and proceeded regardless.  Ultimately they lost when they left their brains at the border.

             The take away is you must seek local knowledge prior to any purchase. Losing millions, some folks chose to burn their house down rather than give the land back developed.  Today, it’s a ghost town.  Beautiful homes that have no legal right to own the land they are built on.

            In the same area is land that expats can obtain legal title.  I spoke with a retried couple that recently bought a beach property.  After visiting a friend’s property in the area, they decided to find their home.  The process took about a year and was complicated.  What worked was they read books, the internet, spoke with agents, locals and attorneys.  At the end of the day (actually about a year from the time they identified the property), and the cost of 300k, they owned a beautiful home with a gorgeous beach that provides great body surfing!  The water was cold, so most folks don’t swim during the winter months. 

            The overall market for real estate down here is depressed.  The market crash and the violence of the drug wars have taken a toll.  And despite the recovery that is taking place in the states, it is going even slower in Mexico.

            Before leaving town, I met with two other agents at Starbucks.  Maday and Marycarmen work for an independent company.  They were clear to point out that the market has picked up over the last year.   I plan to see some of their properties on the return trip.  It’s very clear that to purchase property in Mexico you must have a trusted real estate advisor!

            Be patient, take your time and most of all bring your brain!