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Real estate asset management jobs are broadly classifiable into these five categories:1) Site ManagerThe tasks of a site manager involve handling the day-to-day operations of the properties.The manager is assigned condominiums, residential properties, apartments and homeowners’ associations to manage. The person forms the access medium between property manager / owner and tenants. Typically, the site manager is accountable for:handling technical problemsmaintaining physical plantsroutine inspections and repairsmarketing vacant properties and negotiating termstenant relations and complaint resolutionsmaintaining transparent communicationsmaintaining accurate accountsanalyse financial performancehandling site staff, like leasing agents and maintenance personnel2) Property ManagerThe person is entrusted with the task of managing one or more properties.The nature of work is supervisory for residential buildings or to handle commercial buildings that don’t have site managers.The manager serves as a liaison between property owner and site personnel, handling both tangible and intangible assets, designing property management plans and community image building.The property manager has to create valuable properties through net operating income improvement which happens by minimizing operational expenses and optimizing rentals.3) Regional ManagerAlso referred to as a supervisor or a portfolio manager, a regional manager is entrusted with multiple properties over an expansive geographical area, and includes either residential or commercial properties, or both.The regional manager is completely accountable for property performance and has to be in-charge of training, recruitment and development of personnel.The job profile of a regional manager includes:extensive travelauditing financial activitiesmonitoring propertiesconducting market analysismanage teamoffer rental rate recommendationsanalyse revenue and form property portfolio4) Asset ManagerThe asset manager recognizes the property as an ‘investment’ and as such, any decision taken for the property impacts its financial performance.Often the asset manager functions as the representative of the property owner and is entrusted with the task of retaining third-party management companies and supervising them.In this space, all the activities necessary to enhance the value of property portfolio is undertaken, such as defining performance goals, operational functions and caretaker goals.There is no fixed job description of an asset manager; it evolves constantly and varies from one professional setting to the next. The asset manager remains mindful of changing marketing conditions and related economic factors that can impact the property valuation.5) Management ExecutiveThe responsibility of management executive rests more on handling the real estate management company than on overseeing property management, though it is a subsidiary responsibility.The role varies depending on the size of the real estate management company – its opportunities, management team, executive ownership, talent pool and other factors.The management executive is often the CEO, handling the entrepreneurship part of the organisation.The executive remains abreast of market developments and analyses its impact on the vested properties, optimize available resources, plan company operations, enforce company policies, develop business infrastructure and platform, grow the organisational structure and overall, grow the business.The responsibilities between these five categories often overlap due to the similarity between roles and responsibilities and organisation size.Real Estate Asset Management Jobs – Who Will Hire You?As an emerging and profitable sector, real estate asset management jobs exist around the world.Job availability and growth prospects depend on a lot of factors but to begin with, the first question is: “who will hire you?” In other words, which sectors are going to hire someone who is interested or experienced real estate asset management, and in varying degrees.Below is a list of real estate asset management staff seekers.1) Real Estate CompaniesBut, of course! Full-fledged real estate companies offer a complete range of real estate management services to a selected clientele, the choice depending much on income bracket.2) Property Management FirmsThey are similar to real estate companies but functions more like a ‘boutique’ firm involved in offering real estate management services to both institutional owners and individuals in exchange for a fee. The fee is usually a percentage of the total value of the property under management.3) Real Estate Development CompaniesThese are typically those companies who are involved both in the development and management of their developed real estate properties. Development involves prospecting, renovating, building and restoration.4) Commercial BanksCommercial banks hire real estate asset management staff to handle their varied real estate portfolios, that is, properties owned by the bank and those held in trust with the bank.5) Real Estate Investment TrustsThe REIT functions as a group to secure the investments of the property investors. Real estate asset managers are hired to manage the REIT properties.They also have to use financial knowledge to help property owners assess the value of their properties and enhance their portfolio.6) CorporationsMany corporations have a separate real estate department to manage their investments, whether company owned or owned by their clients.They hire in-house real estate asset manager to conduct various businesses like devising best uses for corporate properties, restoring properties, selling and leasing them.7) Government AgenciesGovernment housing and development departments retain real estate asset managers in their staff to handle commercial, state housing, local housing and other real estate related government agencies.8) Insurance CompaniesInsurance companies often invest in real estate and it is a main component of their investment portfolios.They hire real estate managers to handle the portfolios and to offer high-scale portfolio management services to pension fund owners and institutional investors.9) Mortgage Brokerage FirmsMortgage brokerage firms employ real estate asset managers to provide management services for marketing to investors and their financial management.10) Religious & Charitable OrganisationsThese organisations often deal in no-cost or low-cost housing schemes and as such, they require real estate managers who are interested in social services and management.Real Estate Asset Management EducationHow do you become a part of the real estate asset management industry? What kind of educational and professional qualifications are needed? We will discuss them here.Sometimes people just stumble into a real estate asset management career after years spent in investment banking or private equity.A lot depends on industry contacts and networking but if you’re someone who wants to be an intrinsic part of the industry from the beginning, you need to acquire adequate professional and educational qualifications.The real estate management is a complicated and complex field. If we talk about United States, the last three decades have seen many real estate management specific professional qualifications come up and pursued by many.Earlier, real estate management was something learned “on the job” but now employers seek specialization, preferably with a degree in real estate.It is tough to find educational institutions offering property management degrees. Otherwise, opting for a bachelor’s and/or masters degree in finance or business administration can provide meaningful base for the real estate management industry.Some courses which you can think about could be management courses for developing strong management skills, finance courses for developing analytical knowledge and knowing basic accounting principles, business courses for organisational and critical thinking skills, communication courses for learning effective and strong oral and written communication skills, business law courses to understand legalities and of course, real estate courses or real estate law for specific knowledge of the industry.Check: BIWS Review of Real Estate REIT Financial Modeling Course.Real Estate Asset Management Career PathOnce you’re armed educationally, how do you go about beginning a career path in real estate asset management?The first step is:To sign up for an internship with a reputed real estate organisation. You’ll get a first-hand experience of how working in the industry will turn out.As an intern, there are chances to learn skills and gain experience, and begin with professional networking experience, which will prove to be beneficial in years to come.As an intern, you have excellent opportunities to learn from experienced managers, learn various aspects of the job and have fun too! Successful internship often converts into full-time job offers.How to get internship opportunities? Depending on the educational institution you’re enrolled with, internship opportunities are often arranged from their side. You can also find internships searching on job portals and professional networking sites like LinkedIn and Quora.While doing internship, sign up for an informational interview.An informational interview is a strategy where interview is conducted with the sole purpose to learn more about a company or an industry.In this case, your informational industry will be with a real estate asset manager and the objective will be to get actionable insights into the experience and knowledge required to succeed in this field, and the person will also help with various career paths and options.An informational interview is similar to gathering “intelligence” and understanding whether real estate management is really the right career for you or not!The informational interview will help you prepare for the ‘real’ interview, get information about job openings and help build a professional network.Along with experimenting with informational interview, practice job shadowing too.Job shadowing is an activity spanning a day or two where you explore career options by ‘shadowing’ a real estate asset manager.It’s like being an assistant for a day or two and experiencing how the real estate management works happen, and not only this, you also get the chance to pose a lot of career and job related questions to the manager.These three activities will clear a lot of doubts and queries. Getting listed with Industry Associations and gaining real estate licensing is what remains.Building Owners and Managers Association (BOMA) International is a globally renowned organisation offering certification training to real estate staff, in varying degrees. Some of them are:Real Property Administrator (RPA)Systems Maintenance Administrator (SMA)Facilities Management Administrator (FMA)Certified Property Manager (CPM)Accredited Residential Manager (ARM)Accredited Management Organisation (AMO)Accredited Commercial Manager (ACoM)Accredited Community Manager (ACM)Certified Apartment Manager (CAM)National Apartment Leasing Professional (NALP)Master Property Manager (MPM)Professional Housing Consultant (PHC)Residential Management Professional (RMP)Certified Support Specialist (CSS)Association Management Specialist (AMS)Large Scale Manager (LSM)Professional Community Association Manager (PCAM)Certified Manager of Community Associations (CMCA)Depending on the country laws and regulations, you need to have accredited real estate licensing to function, either as an employee or an independent contractor. Further, each industry has some kind of associations. Find out what that is in your country and get listed.Real Estate Asset Management – Getting a JobAt this stage, experiences from internships, job shadowing and/or informational interviews have informed you to a certain extent what entails as a real estate asset manager, and association listings and licensing gives added credibility. Armed with both these experiences, you can move ahead and search for real estate jobs in any of the ten organisations listed previously. Always try to build a strong professional network for better work opportunities.According to the US Bureau of Labor Statistics, the demands for real estate asset managers will grow at 12% between 2012 and 2022.In other words, there are a lot of opportunities. In the US alone, there will be 322,300 openings by 2022. So, how can you get that desirable job?1) A Killer ResumeMost aspirants get wrong in the basic step – an error-free, typo-free, impact-oriented informative resume.Tailor the resume to the job opening.Append the resume with a covering letter and use it to highlight your personality and enthusiasm towards real estate industry. Talk about achievements and accomplishments (if any). The resume and cover letter should reflect integrity.Read: How to create a killar resume2) Social Media SearchYour next real estate job could very well be lurking in someone’s social media update!Employers are increasingly showing inclination towards social media hiring.LinkedIn, Quora and Facebook are popular destinations.Some ways to target employers on social media are:be active on the company pagesenquire about positions directlytalk to the designated adminsshadow their employment listingsparticipate on the company blogsThe idea is to show your interest, clearly and succinctly.3) Use Online Job BoardsOnline job boards make searching simple and effective due to their filtering capacities. Use of online job boards will enable you to:research the employers thoroughly as the listings are often accompanied by company profilesnetworking through IM’s and news groupsget access to latest industry informationknow about career trends and other essentialsgain access to multiple jobs at one timeshare resume with multiple companies instantlyFind relevant job boards and become their active member.4) Real Estate ClubsSince networking is a major component of career growth, becoming a part of active real estate clubs will be immensely beneficial.Become part of real estate clubs and communities, and network with them. A lot of job openings will come from there.Real Estate Asset Management SalaryBeing a performance-oriented industry, there is no fixed salary bar which we can refer.Real estate asset managers who show continuous performance, excellence and high service level often earn more than their counterparts.As we discussed previously, the job prospects are high and wide and thus, the real estate asset management salary depends on position, employer, credentials, education, experience and location.Usually, companies offer additional benefits like healthcare plans, flexible timing, education and training, housing allowances and other perks.Industrial Real Estate CompensationBelow is the data collected by a survey done in 2014 by CEL & Associates, Inc and CEL Compensation Advisors, LLC for industrial real estate sector.Residential Real Estate CompensationYou can compare the above by a similar survey done for residential real estate sector.There is a significant difference. But, let this not change your focus from residential real estate management to industrial real estate asset management. The choice is ultimately yours and again, this data is only limited to the US. Find out similar compensation data applicable for your country and then decide.Source: https://www.financewalk.com/real-estate-asset-management-jobs/Related Post: https://dosramosteam.com/

Investing in Corporate Housing: The 30 Day StayIt is a fact that the middle class in the United States is shrinking according to the Pew Research Center and in today’s fast paced business world job security and longevity are also on the down turn. In order to take control of our financial future it is now even more imperative that each of us take the time to learn more about the financial opportunities available to us through the diverse world of real estate investing. In 2016 the Corporate Housing Providers Association (CHPA) reported revenues of $3.2 billion in the US alone. That is $3.2 billion in rental dollars that corporations are spending to lease furnished residential properties on a month to month basis. This is an untapped rental income stream that the individual investor needs to do understand. Corporate Housing investing can substantially increase the ROI on your residential investments while also reducing your PPD (Pain Per Dollar) compared to vacation rentals.Historical perspective tells us that all real estate values and trends go in cycles. It seams simple to say “buy low” and “sell high” but real estate financial success is so much more than that. To take control of your American Dream you need to understand the income potential of your residential property and be able to tap into the right professional clientele. How you use the investment, how you manage it, how you finance it and when you choose to exit will all determine to what extent your real estate investment is profitable. To be successful it is essential for you to understand the fundamentals of property investing and recognize how to diversify your investment portfolio to maximize income and minimize risk. Corporate Housing as a real estate investment opportunity allows you the investor to significantly increase your rental income compared to unfurnished rentals and minimize your PPD compared to vacation rentals.Corporate Housing may seem simple on the service but to be financially successful you need to understand that corporate housing is more than just a nicely furnished rental. Corporate housings is lodging choice for consumers that encompasses specific standards, minimum furnishing requirements, consolidated billing (Rent, Utilities and Internet are all included in one simple rental rate) and professional service. CHBO, or Corporate Housing by Owner, is a great place to learn more about how individual owners can get the most out of their investment and offers a marketing platform specifically designed to connect with those in need of monthly accommodations. In addition CHBO has a rental calculator and Property Specialist to help you determine what a good rental rate would be for your specific property. In addition CHPA offers both individual and company accreditation certifications for those wanting to take corporate housing rentals to a professional level.TrendingAcross the country we are seeing 2 trends emerging starting with the 401K roll over investment and investing in retirement properties before you retire. With the stock market again hitting high levels analysts are showing concern about how long can this bull market last which is causing individuals to get smarter with their retirement dollars. By taking your 401K investment out of stocks and rolling it into traditional real estate rentals investors are able to gain more control over their money compared to the volatility of stocks. In addition we are seeing investors deciding to buy their retirement home 10 and ever 20 years before they need it. For example if you are looking to retire in Phoenix, AZ investors are purchasing that property now, locking in low interest rates and giving the investors the peace of mind of knowing exactly what their retirement property will cost. For those out of town investors AvenueWest Phoenix is able to fully manage and lease these properties at rental rates 3 and 4 times higher than traditional unfurnished rental rates.Corporate HousingCorporate Housing is a lodging solution that is traditionally transacted between corporate employees that need a monthly lodging solution and is found through businesses that provide fully furnished private residences. According to the CHPA 2017 Report, the industry hit its revenue peak, with revenue for the US corporate housing industry estimated at $3.2 billion, a 10.2% increase over the previous year. For the fourth successive year, the supply of US corporate housing units increased. Average daily rate (ADR) rose 6.3% in 2016, approximately double the growth in overall hotel ADR, according to STR / Smith Travel Research.What does that mean to you the individual real estate investor and what do you need to know? It means that corporate housing tenants were renting furnished 1 bedroom apartments for a national average of $150 per night or $4,500 per month. In addition these tenants stayed on average 86 days.PPD TIP: Typical vacation rentals turn over weekly which means the properties need to be cleaned and inspected 52 times a year. With a typical corporate housing rental the property only needs to be cleaned and inspected 4 times per year. As any landlord will tell you, the time and energy needed to turn over a property between tenants is a lot and anything you can do to increase your revenue and decrease your work makes an impact on your rental success.Who Uses Corporate Housing?Corporate housing has emerged as more than just an essential business service for relocated or traveling business executives. Today, corporate housing is a full-fledged lodging solution for everyday individuals who need short-term furnished and even unfurnished housing that has the space and convenience of a home on the road. Some examples of today’s corporate housing tenants include:BusinessesTraveling business executives, relocating professionals, attorneys, auditors, consultantsEducationVisiting professors, graduate students, students abroad, internsGovernmentLegislators, lobbyists, consultantsHome RemodelHomeowners doing extensive remodels on their primary residences and staying in corporate housing during those months of dust and noiseIndividualsExtended vacations, family visits, divorceesInsuranceFamilies displaced due to flood, fire, mold or natural disastersMedicalTraveling nurses, visiting doctors, extended medical visits, families traveling for specialized treatmentMilitaryIndividuals and families on military assignmentRelocationMore than 40% of typical corporate housing tenants are in the process of a corporate relocationSports & EntertainmentProfessional athletes, traveling musicians, theater performers, movie crews, special event coordinators, reporters, photographersCorporate Housing Versus a Traditional Long-Term RentalWhile corporate housing can be quite lucrative, it’s not the right strategy for everyone. If you are an investor looking to purchase a rental property, review the following to determine whether you and the property are the right fit for corporate housing or whether the property might be a better fit as a traditional long-term rental.LocationCorporate housing thrives in urban and business areas where executives are likely to travel. It also does well near hospitals and universities, which tend to bring on temporary staff or relocate professors or doctors to the area. (These may not be traditional rental areas.) If your property is in one of these locations, you may want to make it a corporate housing rental and tap into these lucrative opportunities.Cash FlowWhile you will typically get a higher annual return with corporate housing, you don’t necessarily get the smooth cash flow that you would from a tenant with a long-term lease. If you need money by the second of each month in order to pay your mortgage, then corporate housing is not for you. With corporate housing, your place will be rented more sporadically and less consistently than a tenant who signs a 12-month lease. In some cases, especially when you work with corporations versus private tenants, you may not receive payment for 45 days.NervesAre you a worrier? Your rental property might sit vacant for part of the year (versus having a long-term, lease-committed tenant). Some people worry about these kinds of details and may not have the stomach for investing in a short-term rental property. That said, if you’re more easygoing and enjoy earning higher returns overall, you may have the right personality to manage a corporate housing rental.TimeDo you have the time? Corporate housing can take more time than traditional rentals because you will have to deal with turnover more often. There may be anywhere from 1 to 12 transactions on your property per year. If you don’t want to be as active in your property’s management (i.e., you’re not cut out for “by owner” management), then hire a good property manager to handle the nitty-gritty details like prepping the home for the next tenant. AvenueWest Corporate Housing is a full service property management program for CHBO Complete™ properties that is available in various markets nationwide. Visit AvenueWest.comfor more details.Home or Condo?What makes a better corporate rental: a single-family home or a condo? This is the million-dollar question in corporate housing, and it’s just one of the considerations when deciding which type of corporate housing investment property is right for you. Obviously, there are many other factors, too, so do your homework and take a "gut" check to find out what kind of investor you are and what type of property works best for you. Consider these factors when making your decision:UpkeepSingle-family homes typically require extra upkeep and maintenance, especially if they're older, including regular yard maintenance, exterior painting, roof repairs, etc. On the other hand, condos only require maintenance within the unit. Generally, the upkeep of the exterior and common areas is maintained by the Homeowners Association (HOA) and is part of the monthly assessment. Condos create reserves from HOA fees to manage major exterior updates or repairs (e.g., a new roof).CostsSingle-family homes come with monthly costs like trash, heating, water, lawn mowing, etc., and each needs to be paid separately. Some of these costs, such as heat and water, will fluctuate depending on the season and the occupancy. Your costs will vary depending on whether your home is vacant, has one tenant or has multiple tenants. Condos require you to pay a monthly assessment, regardless of whether someone is living in the unit. However, most condos include heat, exterior maintenance, trash, building insurance and water in their monthly fees.CommitmentGenerally, single-family homes take more time to manage and require a more active, hands-on investor. There are a lot more things that require upkeep and maintenance in a home than in a condo. For investors with little time, a condo can be a relatively worry-free way to go.ValueWhile resale value depends largely on location, single-family homes are typically easier to resell and hold their value over the long term. A condo building with 500 units may have 10 or more units for sale at any given time, making it difficult to sell your unit at a competitive price.Investment GoalsIs your goal to build equity in the property? Create a positive monthly cash flow? Create the biggest tax deduction? Have a property you can use from time to time? Simply rent until the real estate market gets better? Make sure you are clear on your goals, particularly what you expect to get out of the property and why. These answers will allow you to better assess your success.What to Know BeforeInvesting in a Corporate Rental PropertyIf you’ve decided that corporate housing is right for you, here are some important considerations to make beforeyou purchase a property specifically for use as a corporate housing rental.Evaluate Price Per Bed, Not Square FootEvaluate the price per bed, not price per square foot.While some people think more space or a bonus room is a great perk for their own home, keep in mind that those features are just added liability in a home you plan to rent.Purchase the least square footage with the most number of bedrooms. Just like a hotel, when you rent out a corporate rental, it’s priced per bed, not by square footage.Avoid First-Floor UnitsIf you’re purchasing a condo as a rental property, avoid first-floor units. People who don’t know the city may not feel as safe in a first-floor unit (which can negatively affect your rental success), and often people will use a first-floor rental to advertise a business that they may conduct in the unit.Location MattersLocation. Location. Location.Location can single-handedly ensure your property is rented continuously. Look for homes in urban areas, near train stations and airports, and close to universities and hospitals. Typically, these locations rent well and have the best resale value.Functionally Obsolete Homes Can Make Good RentalsDon’t rule out functionally obsolete properties.Sometimes a property that appears to be a poor long-term home is a perfect short-term, furnished rental home. For example, homes with tiny closets or outdated kitchens make ideal furnished rental properties because a corporate renter may not need all the space or features. Moreover, these properties are usually less expensive to buy and provide good cash flow.Views and Amenities MatterWhen people are visiting a new city for business or pleasure, they want to enjoy all that city has to offer. Corporate tenants like city views, covered parking and free gym access.Keep these things in mind when choosing a desirable corporate rental property.What kind of return on investment can an investor in this space expect?That is the puzzle question of the century. And there are a lot of moving parts and each market is completely different.In a market like Fort Collins, Colo., which you normally would consider a quieter market, you might be able to buy a two-bedroom condo for $175,000 and then you may be able to turn around and rent that property as corporate housing for $3,500 a month, where if you were renting it unfurnished, you might be able to get only $700 or $800 a month for it. AvenueWest Managed Corporate Housing works with a lot of investors across the country and believes corporate housing rentals are an essential element to an investor’s portfolio diversification. For example, if you are a full-time investor and this is all you do and you watch your properties 100 percent of the time, then sure, make your whole portfolio corporate housing, if that’s something that’s interesting to you. But normally, you see it as: if you have 10 units, take seven of them, rent them unfurnished, get consistent rent on them, understand what that is, and then use three properties for corporate housing as your high growth assets, just as you would buy internet stocks or technology stocks.AvenueWest Global Franchise has emerged as the industry’s leader in the managed corporate housing business. Founded in 1999, AvenueWest, had the mission to provide high quality condominiums, townhomes, lofts, single family homes and apartments to meet the extended-stay executive housing demand by professionally servicing a unique niche of business travelers with investment owners’ properties. AvenueWest Managed Corporate Housing and now AvenueWest Global Franchise, LLC were built to provide monthly lodging options and increased opportunities for individual real estate investors.AvenueWest Corporate Housing, Inc., started as a small real estate management company but quickly grew to the largest provider of corporate housing rentals in Colorado and is now the foundation for the national expansion of AvenueWest Global Franchise. This year AvenueWest Corporate Housing is celebrating its 18thanniversary of doing business and providing solutions for property owners, corporate travelers and business owners alike. As the industry continues to grow and provide quality lodging solutions investors can be hands on with their investments, hand off with their investment by utilizing a full service managed corporate housing company and can even develop a business through the AvenueWest Franchise model.RESOURCESAssociation for Serviced Apartment Providerswww.theasap.org.ukAvenueWest Managed Corporate Housingwww.avenuewest.com800-928-1592AvenueWest Global Franchise Inc.AvenueWest - Join the Team303.825.7625Corporate Housing By OwnerCorporate Housing By Owner877-333-2426Corporate Housing Providers Associationwww.CHPAonline.org317.328.4631

FOREIGNERS BUYING PROPERTY IN MEXICOForeigners can own property anywhere in Mexico. Recent changes to Mexican laws now permit foreign ownership of Mexican Real Estate. The way the title of the property will be held will depend on its location. If the property is in the “Restricted Zone” it will have to be held with a Fideicomiso (Bank Trust). The Restricted Zone is defined as any property that lies within 100 KM of an international border or 50 KM from the coast. The international borders are the United States, Guatemala and Belize. A Fideicomiso is a bank trust that holds title to a property in the Restricted Zone with the foreigner as the beneficiary.What is a trustee? In México there are Banks which are authorized to open fiduciary accounts and conduct trust operations. The Trustee holds legal title to the real estate property during the term of the Mexican trust contract, and is also empowered with rights and powers necessary to achieve the objectives to the contractual agreement creating the Trust.What exactly is a Mexican Bank Trust? The Fideicomiso or Mexican Bank Trust is a mechanism that enables foreign persons or companies to purchase property in Mexico. The trust mechanism was created to allow foreign investors to participate in Mexico's rapidly expanding sectors, while exercising complete and legal control over their investments while complying with Mexico's investment laws.The trust is a property interest held by a Mexican bank. The purpose of the bank is to manage the property for the benefit of the owner of the trust. Real estate investment trusts enable foreign entities to invest in Mexico's coastal and border areas which were once restricted from foreign investment of any kind.Only Mexican banking institutions authorized and regulated under Mexican laws can serve as trustees. The beneficiary of the trust, the foreigner, retains the use and control of the property held in trust and makes the investment decisions with respect to the property. This can include the decision to transfer such property interest to another foreigner realizing all of the economic benefits that accompany equity ownership in Mexico's attractive coastal properties.Trusts are established for initial 50 year periods and can be renewed indefinitely for additional 50 year periods. The beneficiary may transfer or assign his beneficial interest to any person and keep the profits from the sale of the property subject to applicable tax laws and expenses for the sale. Property held under a trust can be passed on to future generations and the person to whom the bequest is made is not burdened with an inheritance tax.Fideicomisos are an easy and safe way for you to own property in Mexico. They are government sanctioned and offer strong protection. Potential investors are encouraged to contact us for assistance in setting up your Mexican bank trust.To get a Fideicomiso you or the seller must provide to the bank the following information:A) A copy of the real estate title or deed indicating the exact surface area and boundaries. B) A copy of a draft of the property. C) The name (s) of the beneficiary (ies), nationality, address and phone number. D) The agreed purchase price.Upon receiving the information and documents, the bank shall proceed to apply to the Mexican foreign affairs ministry, for the Trust Permit; once obtained at the Bank, they will proceed to execute and legalize the Mexican Trust Contract before a Mexican Notario. Notaries in México have far greater legal authority than those in the United States. The Mexican notary public is an attorney at law, who is authorized by the Government to give final formality to the title transfer process in his protocol Book. The resulting document taken from his protocol book is registered at the public registry of the properties, and it will give evidence of the title in the name of the buyer.As the Trust Beneficiary, you will have the use and possession of the property, that is, you may live on the land, undertake any alterations and improvements. You also have the capacity to instruct the Trustee on mortgaging the real estate, renting it, selling, transferring your beneficial interest to another person or corporation.If you sell the property to another foreigner, you may assign your beneficial interest to the new purchaser. This assignment of rights must be formalized before a Mexican Notario, prior to the payment of the federal and local taxes and fees that arise from the transfer of beneficial rights.You will have the obligation to pay the duties on the property such as annual property tax, condominium fees, maintenance fees, water, electricity, annual Trustee fee, etc.The fees which the Trust Division of the bank you chose to issue your Fideicomiso will vary. Here is an example of one bank’s fees.A) A one time charge for Trustee acceptance, $500.00 USD, payable upon the signing of the Mexican Trust Contract.B) A yearly fee of $500.00 USD for the handling and servicing of the Trust, payable in advance. This fee will be increased by the Trustee every two years, according to the United States inflation rate. Every year, on the anniversary date of the Trust, the Bank shall mail to your address the bill of the annual fee for keeping the property in Trust. All the Trust fees will incur the value added tax (IVA) and are subject to change.You can expect other expenses that the beneficiary must meet upon the celebration of the trust deed. You must pay out the fees, taxes and expenses that arise from the purchase as well as the formalization of the Trust deed before a Mexican Notario. Also, you will pay the cost of the permit that must be obtained from the Mexican foreign affairs ministry to acquire the property in Trust, and the recording of the Trust deed at the National Registry of Foreign Investments.The Beneficiary has the right to appoint a substitute Beneficiary who will receive all the rights and obligations that arise from the Mexican Trust contract, if the Beneficiary dies during the life of the Trust. With this designation of substitute Beneficiaries, your heirs will not need to follow any probate proceeding before the Mexican courts, which could take time and attorneys fees. They would only have to give notice to the bank of the deceased and show the death certificate and their identifications. Then, the bank will give instructions to a Mexican Notario as to the proper protocol of the documents and with the resulting deed registering them as the new owners (Beneficiaries) of the Trust property.AVOID THE MOST COMMON BUYING ERRORS IN MEXICOPurchasing property in Mexico can be a fulfilling and life changing event if you do it right. So many times we have seen naive foreigners coming to Mexico expecting to get an incredible deal on properties that could be called “too good to be true”. Well we have to say that yes, most deals down here are out of this world and at a great discount compared to the United States and Canada, but if it’s too good to be true it's probably not true. If someone is offering you an incredible deal on a property but is asking you to do the transaction outside of traditional methods and without a professional real estate agent, we would have to say to be cautious.Use a professionally trained Mexico Real Estate AgentDo your homework and find a professional real estate company with trained real estate agents. A professional real estate agent will know their area and know the value of the property. This can save you tens of thousands of dollars when it comes time to negotiate. Make sure your agent is confident and knowledgeable and has the ability to not onlyfind you what you are looking for but negotiate a great deal for you. Ask your agent if they have an office or are they working out of their house. If they ask to meet you at a restaurant or a coffee shop it might be because they don't have an office to conduct business from.Are they a member of the local real estate association and if so which one. This will guarantee that you will have the ability to file a complaint if something goes wrong. The local associations hold their members to certain standards, which are usually very similar to the United States’ National Association of Realtors guidelines.If you don’t speak Spanish, make sure you understand what your agent has translated for you. Sometimes communication can be difficult, so make sure your agent takes the time to explain everything to you. Do not let them tell you to trust them or use the famous words “THIS IS HOW WE DO IT IN MEXICO". Make sure you have a clear understanding and agree to the entire process.TitleMake sure the person you are dealing with is the actual owner of the property. You may be laughing that we wouldneed to say this but you would not believe how many times we have been approached by people that say they own the property but really are not on title. If they are not on the title and do not have a power of attorney you are dealing with the wrong person.EscrowUse escrow in all cases involving the re-sale of property! Even when purchasing new construction, escrow should be used. In certain cases some developments will require you to release funds immediately in order secure the property. In these cases you need to do your homework on the development and asses your level of risk. Many times a good real estate agent can help you save thousands because of their experience and history with the local development. Or there may be fund control which will release portions of your deposit according to certain benchmarks, in which case you should be informed and aware of this. All of this should be in a written sales contract and disclosed to you before you release any funds. Understand the terms of your escrow and if you have any questions ask your escrow officer to explain them to you.Sales ContractRead your contract!!! Understand the terms and conditions of the contract. If your contract is in Spanish and you need it translated ask to see if the development has an official translation or spend the money and get it translated.The best advice we can give you is to use professionals. Trying to save a few dollars here and a few dollars there by using inexperienced people in your transaction could cost you $10,000's if not more in the end. Think about this for asecond. You’re a foreigner buying property in a foreign country. Why would you want to take unnecessary risks?All real estate transactions anywhere in the world come with a level of risk. Just because you’re in Mexico it doesn’t mean you should leave your common sense at the border. You can have a safe secure transaction with reasonable expectations if you would take a little time and choose the right professionals for the right jobs.BUYING COASTAL PROPERTY IN MEXICO'S RESTRICTED ZONEMexican law prohibits foreigners from acquiring fee simple title to residential real estate in areas referred to as “restricted” zones. These restricted zones refer to any land located within 50 km (30 miles) of any coastline or 100 km (60 miles) from any of the three borders shared with other countries, namely the United States, Guatemala and Belize. Also included in this zone is the entire Baja Peninsula.To increase trade in the real estate industry recent changes to Mexican laws now permit foreign ownership of Mexican Real Estate. There are actually several ways a foreigner can legally purchase property and the best way for you will depend on your investment interest.The “Fideicomiso” or Mexican Bank Trust is a mechanism that enables foreign persons or companies to purchase property in Mexico. This trust mechanism was created to allow foreign investors to participate in Mexico's rapidly expanding real estate market, while exercising complete and legal control over their investments and complying with Mexico's laws.The trust owns the property and is held by a Mexican bank. The purpose of the trust is to hold the property for the benefit of the owner of the trust. Real estate investment trusts enable foreign entities and persons to invest in Mexico's coastal and border areas, which were once restricted from foreign investment of any kind.Only Mexican banking institutions authorized and regulated under Mexican laws can serve as trustees. The beneficiary of the trust, the foreigner, retains the use and control of the property held in trust and makes the investment decisions with respect to the property. This can include the decision to transfer such property interest to another foreigner realizing all of the economic benefits that accompany equity ownership in Mexico's attractive coastal properties.Trusts are established for an initial 50 year period and can be renewed for additional 50 year periods indefinitely. The beneficiary may transfer or assign his beneficial interest to any person and keep the profits from the sale of the property subject to applicable tax laws and expenses for the sale. Property held under a trust can be passed on to future generations and the person to whom the bequest is made is not burdened with an inheritance tax.Fideicomisos are an easy and safe way for you to own property in Mexico. They are government sanctioned and offer strong protection. Potential investors are encouraged to contact us for assistance in setting up your Mexican bank trust.As the Trust Beneficiary, you will have the use and possession of the property, that is, you may live on the land, undertake any alterations and improvements. You also have the capacity to instruct the Trustee on mortgaging the real estate, renting it, selling, transferring it in to your beneficial interest to another person or corporation.If you sell the property to another foreigner, you may assign your beneficial interest to the new purchaser. This assignment of rights must be formalized before a Mexican Notario, prior to the payment of the federal and local taxes and fees that arise from the transfer of beneficial rights. You will have the obligation to pay the duties on land, i.e.: Annual property tax, maintenance fees, water, electricity, annual Trustee fee, ETC.As an example of the cost of a Fideicomiso here is what one bank charges:A) $500.00 USD for the Trustee acceptance charge, payable upon the signing of the Mexican Trust Contract.B) $500.00 USD a year for the handling and servicing of the Trust, payable in advance. This fee will be increased by the Trustee every two years, according to the U.S.A. inflation rate. Every year, on the anniversary date of the Trust, the Bank shall mail to your address the bill of the annual fee for keeping the property in Trust. All the Trustee fees have the value added tax (IVA) and are subject to change.You must pay out the fees, taxes and expenses that arise from the purchase as well as the formalization of the Trust deed before a Mexican notary public. Also, you will pay the cost of the permit that must be obtained from the Mexican foreign affairs ministry (SRE) to acquire the property in Trust, and the recording of the Trust deed at the National Registry of Foreign Investments.The Trust Beneficiary has the right to appoint a substitute Beneficiary who will receive all the rights and obligations that arise from the Mexican Trust contract, if the Beneficiary dies during the life of the Trust. With the designation of substitute Beneficiary, your heirs will not need to follow any probate proceeding before the Mexican courts. They would only have to give notice to the bank and show the death certificate and their identifications. Then, the bank will give instructions to a Mexican notary public as to the proper protocol of the documents and with the resulting deed registering them as the new owners (Beneficiaries) of the Trust property.