Century 21 Sun & Sand - Your Gateway To Mexico Real Estate

Choosing Your Realtor in Puerto Peñasco

Heidi Wosak — Sat, 30 Aug 2008 22:18:00 GMT

Licensure for real estate agents is a reality in the state of Sonora, and a new era of real estate professionalism has evolved in Puerto Peñasco! When considering a real estate transaction, the most important choice for a prospective client may very well be selection of an agent to represent his needs. A few short years ago, northwest Mexico was the Wild West of real estate, with many transactions occurring with very little oversight, and widely varying qualities of professionalism and real estate expertise among salespeople. “Buyer beware!” was the mantra. There have been many changes since then!

Most recently, the State of Sonora became the first state in Mexico to require licensure for real estate salespeople. A 102-hour course, called the Diplomado, was brought to Puerto Peñasco by ISAP and CMIC (state governmental departments), with assistance from AMPI and PPAREA (national and local real estate organizations, respectively) from the state university in Hermosillo. Many real estate agents have taken the course, and a few have completed all the requirements and received their licenses. A requirement for licensure, in addition to background checks, fingerprinting, and much paperwork, the course provides a broad overview of real estate law, ethics, and practical application to real estate transactions in Mexico, which are quite different than in other countries, including the USA.

The Diplomado, as well as the local Puerto Penasco Association of Real Estate Agents (PPAREA) and the Puerto Penasco chapter of AMPI, the Mexican national organization of real estate practitioners, and a thriving multiple listing service at their fingertips, afford real estate agents more opportunities than ever before to develop their skills and expertise. The result is that Puerto Penasco clients, whether buyers or sellers, can choose from among many talented and qualified real estate practitioners.

Choosing a realtor with experience in the area of your need, education, membership in local organizations, and a license from the state of Sonora is an excellent place to start your real estate adventure. Some agents specialize in representing buyers or sellers, others are experts in certain areas of the locale, still others deal with only commercial or only residential properties. Some represent one development. All should be able to refer you to someone who can better help you, if your needs don’t fit their areas of expertise. Your well-chosen realtor will successfully guide you through the process of your particular type of transaction, getting your Mexico adventure off to an excellent start.

Mexico Living Magazine Posted Article. Written By: Gretchen Ellinger, Century 21 Sun & Sand, Cholla Bay Manager

Puerto Peñasco Medical Services Improvement- The Arizona Republic Article

Heidi Wosak — Tue, 03 Jun 2008 22:22:00 GMT

Mexican firefighters to learn emergency medical services

Lily Leung
The Arizona Republic
Jun. 2, 2008 12:00 AM

Fire officials in Puerto Peñasco, Sonora, also known as Rocky Point, have taken a major step toward offering rapid, basic emergency medical services not only to its residents, but also to U.S. tourists who visit the beachside town.

Martin Navarrete, a Surprise firefighter/paramedic, met with Puerto Peñasco Fire Chief Ramon Esteban Manuel Lara and other fire officials last weekend to draw up a syllabus in which Surprise fire personnel will help train their Mexican counterparts in basic emergency medical services protocol.

The Puerto Peñasco Fire Department responds only to fires, bee removals and vehicle accidents; the Red Cross and private clinics handle EMS calls.

However, with the new training program soon in place, the Fire Department will be able to handle the basics: taking blood pressure, performing glucose checks and offering first aid.

The instruction will be paired with the opening of a free clinic that will be set up in late June with the help of Surprise fire staff.

Navarrete has pitched the plan to the project's committee in Surprise, and the next step is to see who will be available to help out.

"The meeting went as planned and got a lot accomplished," said Navarrete, who volunteers to train Puerto Peñasco's firefighters on his own time six to eight times a year.

Surprise Assistant Fire Chief Clint Mills, who regularly accompanies Navarrete on the excursions, said Navarrete's work is also about increasing public awareness.

During his last meeting, Puerto Peñasco residents were invited to the firehouse to have their basic vital signs and glucose checked for free.

"He's attempting to engage the public and have them more involved with what the Fire Department may have to offer them," Mills said.

The target of this awareness campaign is not only the town's residents, but also American tourists who vacation in the area, he added.

Mills and Lara have discussed a protocol for the best way to treat and transport American patients back to the U.S.

"We want to make sure it's not a guessing game, that there's a process in place," Mills said.

Navarrete will return to Puerto Peñasco on June 14 for the Fire Department's anniversary celebration and later in the month to help set up the free clinic. Puerto Penasco Medical Services Improvement- The Arizona Republic Article

Discovering The Beachfront Communities of Puerto Peñasco- Playa Miramar

Heidi Wosak — Mon, 19 May 2008 19:27:00 GMT

Co Authored by Heidi Wosak & Playa Miramar Homeowner Al Schwartz

This is the first article in a series about getting to know the beachfront neighborhoods of Puerto Peñasco in more detail. The miles of beaches hold little known secrets that few venture out to discover. We start first at the eastern edge of Puerto Peñasco with the community of Playa Miramar. The history and commentary from an actual homeowner, who has been there from the beginning, should help the reader understand why this community is truly a hidden treasure.

The beach community of Playa Miramar sits some 22 miles south and east from the town of Puerto Peñasco proper, but is worlds away in almost every aspect. The desert beach is a wide, white sand expanse, unbroken for miles in either direction. The terrain to the sea is a gentle slope that allows for easy wading as well as swimming and, at the time, camping. Homeowner Al Schwartz still boasts that “spending time at Miramar is one of THE great ways to spend a weekend!”

The land now known as Playa Miramar was owned by an Ejido, or farming commune, that began leasing beachfront lots in early 1990. Since Al was more than passing familiar with the place, his family decided to take a chance and buy a lease. Al goes on to share his thoughts, “Of course, the idea of building a beach home was just a distant dream in 1991 when we got our lot. First, because we were not exactly sure of the rules governing home ownership on leased land, and second because the property was off the power grid. In fact it was nearly 20 miles to the nearest utilities of any kind. So began the odyssey for answers to our questions.”

Al shares his experience here with us about building and living in Playa Miramar. “In 1997, after much investigation of both the legalities of building in Mexico and the various ways and means of providing utilities to a home on the beach, I was ready to commit to building. My research yielded a few new wrinkles to the building game as it was practiced on Miramar back then. First, I opted for a new type of construction. Instead of the usual concrete and concrete block construction, I chose Fanosa Panel; a product that is made in Mexico and one which my local architect was very familiar with, since he was a distributor. Fanosa panel is a composed of a steel web truss, sandwiched between two mats of steel mesh and the voids are filled with polystyrene foam. The panels can be made in any length and any thickness. The panels are erected and clamped together, then stuccoed. This method of construction not only gave my new home a ‘fast track’ in construction, the finished product rendered R-34 walls and an R-54 ceiling. Adding custom made Argon gas filled thermal windows gives the house an outstanding insulation factor, which is great for both heating and cooling. With the advent of better solar electric systems, getting the house powered up was a lot easier than I thought it would be. The system, which incorporates solar panels, an inverter (to convert the DC to AC) and battery bank was complimented by a 12 KW, L.P. gas-fired Onan generator for those times when the Sun’s rays and the storage batteries didn’t suffice. Together the system provides all the energy you could need. Since the house has every amenity any house stateside could want, including satellite TV and internet as well as central heating and air-conditioning, the system has done a terrific job. If you weren’t aware of what was powering your hair dryers and trash compactor, you’d never know that you were off the power grid. Add in a 2,500 gallon water cistern (water is delivered via truck on demand) and a septic system, a 1,000 Liter L.P. gas tank (also delivered on demand) and the entire house is self-sufficient. Beachside living at Miramar is nothing short of spectacular. I know that it sounds like hyperbole, but take this into account; I live next to some of my dearest friends. These are people, like me, who walk the road a little less traveled. The beach has its own rules of etiquette, which lend an even more familial atmosphere. You never know when someone will stop by for a chat, or a drink or when you will do the same while walking along the beach. Almost without exception, everyone that lives at Miramar is mellow…and has beer or Margaritas at the ready! While there are always those who chose to dramatize (even Eden had its snake after all), the prevailing attitude among my friends and neighbors at Miramar is: “If you’re Lucky Enough to be at the Beach…You’re Lucky Enough!” Al’s dedication to building with the highest quality materials and for full time living conditions makes his home one of the prized beachfront estates in Playa Miramar.

Since completing his home in 1997, several interesting things have happened, most notably that their leases have been converted to bank trusts (giving us full legal rights of ownership, and even title insurance) the Mayan Place Resort has been constructed immediately adjacent to the community and Puerto Peñasco has been ‘discovered.’ With all that, their HOA (El Pueblito de Playa Miramar, A.C.) has begun the process for getting the neighborhood on the electric power grid for the owners who want that, as well as discussing the possibility of putting in water mains to do away with the trucked water.

Al and his neighbors share a feeling that, “one of the best things about Miramar was its isolation. Little Playa Miramar is growing up…and fast!”

Al is selling his home to move along in his life and offers this advice to anyone who is considering Playa Miramar as their next beachfront vacation neighborhood, “The beach is still white. The water is still blue. The people are still friendly, and the beer is still cold. Thankfully, some things don’t change.” That is the Spirit Al!

Within the past year the lots that are on the north side of the beachfront community of Playa Miramar have received titles. There are 3 tiers of lots to choose from.

Currently there is no “popcorn trail” or signs for that matter leading the way to Playa Miramar so, if you would like to see this community first hand, here is the secret to getting there: Head Southeast on Fremont Blvd, pass Playa Encanto and keep heading South at the “Y”. A few miles past you will come upon double arches, take a right here! Go down this road until it basically ends and turns to the left. Keep driving East past the condominium towers of Luna Blanca to the entrance of Playa Miramar. There is a guard gate for the Mayan Palace, take a right here and you are now entering into one of the rare gems of Puerto Peñasco- Playa Miramar. Welcome and drive slowly, wave to the neighbors and respect the peace of this community.

For more information about Playa Miramar contact heidiwosak@century21penasco.com

Rocky Point — Mexican resort is growing but still greeting touristas with open arms

Janice Duron — Mon, 07 Apr 2008 19:38:00 GMT

By Pat Reavy
Deseret Morning News

Published: Sunday, March 9, 2008 12:09 a.m. MST

PUERTO PENASCO, Mexico — Nestled in the upper corner of the Sea of Cortez, the once sleepy fishing village of Puerto Penasco, or Rocky Point as it's known by touristas, continues to transform itself into a major Mexican vacation destination.

But now that the hotels, luxury condos and time shares are being constructed at a wicked pace, what city leaders, merchants, restaurant and club owners hope for most is that tourists will keep coming.

Three years ago, I traveled to Rocky Point and witnessed firsthand a major hotel and recreation boom. In January, I returned to the resort city in the state of Sonora.

A host of new hotels and condos sits along the shoreline from Cholla Bay through Las Conchas and North Beach. A drive through Old Port shows there is even big construction in Rocky Point's oldest regions. Across from the Sunset Cantina, older hotels such as the Penasco Del Sol have upgraded to compete with the newer, more modern high-rises on Sandy Beach.

Large new homes in Cholla Bay are being built, many of them costing six figures.

Tourists can now bring their golf clubs as the first 18-hole golf course in Rocky Point, Las Palomas, is open and ready for visitors to try out the green links in the middle of the arid desert.

document.writeln(AAMB6);

There were 44,875 residents in Puerto Penasco as of the 2005 census. The large majority of them live within relatively close proximity to the coast. Puerto Penasco is actually a large area, nearly 3,800 square miles. But the farther inland into the Sonoran Desert one goes, the less populated the region becomes.

A sunny getaway is almost always guaranteed in Puerto Penasco, an area that receives an average of 2 inches of rain per year. In the summer, day temperatures can rise into the '90s. During the winter months, the highs are still well above freezing.

But some merchants and cab drivers say they have noticed a decrease in American tourists in recent months. One cab driver, who didn't want his name published, said he knows a regular visitor from Boston who used to travel to Puerto Penasco almost monthly. Now, it has been several months since his last visit.

The cab driver blamed the tourism slowdown on America's mortgage crisis. An article in the January edition of Join Us, a Puerto Penasco monthly tourist paper, agreed U.S. financial woes in 2007 were felt south of the border.

Epifanio Salido Pavlovich, head of the Sonora Commission on the Promotion of Tourism, told the paper the economic situation in the United States "had a strong impact" on Penasco. But he also noted Rocky Point had 1.7 million foreign visitors in 2007, up 11 percent from the previous year. About 80 percent of those tourists were from Arizona, he said. Not a surprise, considering Penasco has also been referred to as Arizona's beach getaway. The drive from downtown Phoenix to Rocky Point is about 3 1/2 hours.

Add the American visitors with vacationers from other parts of Mexico, and Penasco had about 2.1 million tourists in 2007, Pavlovich told the paper.

Still, the cab driver told me that American dollars are needed in Rocky Point.

"It's not about one being better than the other," he said. "We need each other."

Mexico needs the money tourists are willing to spend. And Americans need a place to get away, he said.

Another possible concern is the ever increasing rules at the border, including the new passport law expected to go into effect later this year. Penasco was located for decades in what was known as the "free zone" between Mexico and the United States, meaning those driving into town did not need a special car permit, visas or a picture ID with proof of citizenship, although it was always recommended to carry those items as a precaution.

The free-zone laws, however, are about to expire as the U.S. government tightens security around the Mexican and Canadian borders. Exactly when that will happen keeps being postponed as the federal government tries to prepare itself for an inevitable avalanche of passport applications.

The latest word was that as of Jan. 31, tourists re-entering the United States from Mexico will need to have a government-issued picture ID, such as a driver's license, and proof of citizenship, such as a birth certificate.

As for passports for people crossing the border on the ground, some reports say the government will delay that rule as late as June 2009.

While tourists can get into Sonora with relative ease, the lines to get back into Arizona, especially on Sundays or after a holiday weekend, have become increasingly longer in recent years because of more careful questioning by border patrol agents. Some trying to return to America could find themselves waiting more than an hour on some days, and probably longer if they don't have the documents required as of Jan. 31.

All of the people I talked to in Rocky Point did not believe, however, that the new passport rules would have an effect on tourism. Some, in fact, weren't even aware of the new rules.

One merchant named Jose, completely unaware of the upcoming law, claimed there was no passport rule.

People flying into Mexico and Canada are already required to have passports. That hasn't been a problem for Penasco, which only has one general aviation airport. Currently, only small planes use the airport. But the plan for the city was to expand the facility into an international airport, possibly within the next year.

The majority of tourists who visit Rocky Point can be broken into two groups: older visitors or people with families looking for a relaxing getaway on the beach, and college-aged party revelers in town for spring break or a concert.

The semiannual marathon concerts delivered by Tempe rockers Roger Clyne and the Peacemakers have become anticipated events for Penasco. The shows attract several thousand people from all parts of the United States and Canada each May and October.

The band held a special concert in Cholla Bay in January at JJ's Cantina. I was invited.

During a normal May or October show, known as Circus Mexicus, Penasco overflows with Roger Clyne and the Peacemakers fans to whom most merchants and bar owners cater. On this trip during the "off-season," the crowds were significantly down. It didn't take long, however, for word to spread among bar and restaurant owners about another show.

"Are you in town for the concert?" becomes a common question asked by employees at hotels, restaurants and bars. At the club Around D Corner, the owner greets each person who walks in the door. It's not long before he tries to attract more business by playing continuous Roger Clyne and the Peacemakers and Refreshments (Clyne and drummer PH Naffah's previous band) on the club's sound system.

In addition to the friendliness and laid back atmosphere of the city, one of the biggest draws to Rocky Point may be its affordability. As opposed to some of the other, better-known Mexican resort cities, lodging and food can be found at reasonable prices. Most restaurants serve food in generous portions. El Capitan, The Lighthouse and Crow's Nest sit atop Whale Hill, offering patrons both excellent Mexican food and a spectacular view of the Sea of Cortez. Manny's, a popular nightclub, especially during spring break, also serves great meals with generous portions in a more laid-back environment. For breakfast, there is the quaint Max's Cafe, serving excellent food in a friendly environment.

For those looking for just a quick bite to eat, there are also $1 taco stands throughout the city that offer some of the best food in town.

Not only do many establishments in Rocky Point accept American currency, but they give U.S. dollars in change as well. Shops are plentiful throughout Puerto Penasco. Many are tourist traps that sell the same T-shirts in each store. But there are also several that offer handmade Mexican metal-work or glassware.

Despite the booming tourist and vacation home industry, a lot of work is also being done to help infrastructure keep up with the growing resorts. The road to Cholla Bay is still dirt, as are many of the side streets between each hotel. But more and more roads are being paved each year. Rodeo Drive was affectionately known by tourists as "The Dirt Mall" for many years because of the stores that lined the dusty street. Now the road, which also leads to a new condo development, is paved.

State of Sonora Requires License for Real Estate Agents

Janice Duron — Mon, 03 Mar 2008 17:39:00 GMT

RISMEDIA, June 19, 2007-(MCT)-Sonora has become the first state in Mexico to enact a licensing requirement for real estate agents, which may include criminal-background checks in select U.S. states, including Arizona.

Because the majority of Sonora’s foreign real estate investors are from Arizona, state regulators applauded the new law, which was unveiled at the Arizona-Mexico Commission meeting Thursday.

Investing in Mexico is safe, officials insisted, but while safeguards are in place, it’s up to buyers to exercise common sense.

Kevin W. Hardin, chief executive officer of Phoenix-based International Mortgage & Investment Group, said investors run into problems after “leaving their brains at the border.”

“Americans get to the border and someone on the beach shows them a beautiful condo and asks for a cash deposit now,” he said. “You wouldn’t do that in the U.S. Why would you do that in Mexico?”

Government officials in Sonora, meanwhile, are legislating and regulating those who peddle to their greatest investors: foreigners.

Last year, more than $550 million in foreign investment poured into Sonora. The state ranks third out of 31 states and Mexico City for foreign investment.

“It’s not in our interest for investors to have problems,” said Epifanio Salido Pavlovich, director of the Sonora Office of Tourism

On heels of investor dispute

In 2001, Tucson couple Eva and Francisco Durazo paid $8,500 for the right to use a Puerto Penasco condominium 10 days a year for 10 years. They pay an additional $80 a year for maintenance.

Their last visit to the Fiesta de Cortez development was in April 2006, and for the past two months they have been trying to contact the hotel operators to plan their next trip.

“It was our dream to go up there and spend the summers,” Eva Durazo said. “We feel like we’ve been taken.”

Last month, the Arizona Department of Real Estate issued a “cease and desist” order against the condominium developer following complaints from nearly a dozen investors that developers took deposits or advances totaling $378,318 for property never turned over to the consumers.

Because the company advertised in the state and finalized contracts in Tucson and Scottsdale, Arizona regulators were able to exercise jurisdiction, said Mary Utley, a department assistant commissioner.

The owner of Fiesta de Cortez Hotel Urbanizadora Vacacional de Puerto Penasco, Ignacio Chavez Moran, did not attend the commission meeting, but his attorney vowed to resolve the dispute at a meeting set next Saturday.

“We are going to analyze the contracts and come to an agreement between the parties,” attorney Gilberto Pena said. “We consider this situation to be resolved.”

The 100-plus-room hotel has 13 condo owner and numerous time share owners. The rest of the units are rented out as hotel rooms.

Pena said the majority of investors are from Arizona.

Binational resolution

Rafael Rochin of the Sonora Office of Tourism told commission members that his office intervened on behalf of the investors and said the company will resolve the dispute, up to and including reimbursement of investors’ down payments.

“This is a good-faith public gesture,” he said. “We are two distinct countries, but with shared concerns so we look for solutions together.”

Fiesta de Cortez representatives will meet with the Arizona Department of Real Estate Wednesday, said Commissioner Sam Wercinski.

After he addressed commission members and met with Pena, Tucsonan Francisco Durazo said he was hopeful that he would once again enjoy a Puerto Penasco vacation.

Investor Le Bertha Umbreit, a Phoenix attorney, thinks Chavez is sincere and plans to attend the Saturday meeting in Puerto Penasco, she told commission members.

“I believe he will honor the contracts and I believe he’s trying to come to an amicable resolution,” she said.

Regulations and legislation

When Sonora’s new licensing law is implemented — likely this fall — people selling real estate without a license could face fines of up to $5,000, Rodolfo Elias Calles, special projects manager with the Sonora Secretary of Economy’s office, told commission members.

Aside from background checks, agents will be required to undergo training in real estate law and regulations, he said.

“Sonora is trying to be on the cutting edge,” Elias said. “Although I’m sure somebody who’s had a bad experience is going to contradict me on that.”

Ultimately, investors must protect themselves.

Hardin said people should seek the advice of an attorney and consider a U.S. lender, who then assumes part of the risk.

“The bulk of the risk for most buyers is removed when you bring in a lender,” he said. U.S. banks also offer better interest rates to U.S. citizens.

Puerto Penasco broker Rick Ramirez, owner of Century 21 Sun & Sand, said problems arise when investors don’t apply the same logic to real estate transactions in Mexico as they do in the United States.

For example, Ramirez said, people should not buy property and sign paperwork that is in Spanish if they can’t ready Spanish.

“It’s all common sense.”

Fast Facts

–Sonoran officials expect tourism to increase 10% by 2009 to 9.6 million people - 70% from Arizona.
–Today, Sonora has around 5,000 housing units built or under construction primarily for sale to foreign investors.
–Officials expect that to grow to 40,000 units in the next 20 years.
–55% of the state’s new construction is in Puerto Penasco.

Source: Sonora Office of Tourism

How to protect yourself

In Mexico’s restricted zone — within 60 miles of the international border or 30 miles of a coastline — foreigners may obtain all the rights of ownership but formal ownership must be in a bank trust, known as fideicomiso.
To make a property purchase, the buyer requests that a Mexican bank act as a trustee. The bank obtains a permit from the Ministry of Foreign Affairs to acquire the chosen property in trust.

The bank becomes the legal owner of the property for the exclusive use of the buyer, who has all the benefits of a direct owner, including the right to lease or transfer the property to a third party or heir.

The only national professional real estate organization in Mexico is the Asociacion Mexicana de Profesionales Inmobiliarios or AMPI (Mexican Association of Real Estate Professionals).

At this time, there are no license laws regulating real estate brokerage and sales in Mexico. Sonora legislators, however, recently passed a bill requiring real estate agents to be licensed. The law will go into effect later this year.

Potential buyers should also check with the local chambers of commerce or an attorney for advice.

Time-share purchases do not follow the same regulations and can be handled as a private two-party agreement. Experts say it’s still a good idea to check with an attorney or agent before signing any time-share agreements.

Source: Sonora Office of Tourism and Century 21 Sun & Sand

Mexican Resorts Show No Sign of Catching U.S. Housing's Cold

Janice Duron — Mon, 03 Mar 2008 16:22:00 GMT

"Mexican Resorts Show No Sign of Catching U.S. Housing's Cold"

Real estate experts in Mexico worry that the giant sound they hear is the softening U.S. housing market sucking out the money that Americans have poured into vacation homes south of the border. But neither the cooling American housing market nor tense Mexican presidential politics so far have stemmed the influx of foreign dollars into Mexico's booming coastal resort areas, government and real estate officials said.

When FONATUR, Mexico's tourism development agency, put the first phase of Litibu on the market a few months ago, buyers snapped up the 500 acres of the newest Pacific Coast resort for $125 million. Foreign investment into Mexico is on track to hit $20 billion this year, up from $17.6 billion in 2005, according to the government.
– Evelyn Iritani, Staff Writer, L.A. Times, August 26, 2006

A RESORT FOR THE FUTURE!

Janice Duron — Wed, 20 Feb 2008 00:19:00 GMT

Jan. 18, 2008, 9:15AM
Puerto Peñasco is a resort for the future

By DAVID HENDRICKS
San Antonio Express-News

Puerto Peñasco, Mexico — This fast-developing resort area, on the eastern shores of the Sea of Cortés in the Mexican state of Sonora, is Arizona's beach.

But not to worry. Texans are welcomed, too.

Many American visitors refer to Puerto Peñasco as Rocky Point, its English translation. The name in either version refers to a Gibraltar-like rock outcropping that punctuates two long stretches of beach.

Whatever the names, the area resembles Cancún of 20 years ago, especially the way Puerto Peñasco's line of towers stretches several miles west of the city. This resort zone is known as Sandy Beach.

The economic model for Puerto Peñasco differs significantly from Cancún's, however. Whereas hotels catering to one-time or occasional tourists dominate Cancún, Puerto Peñasco's developments are entirely condominiums owned by frequent repeat visitors.

Puerto Peñasco, if nothing else, is a reflection of Arizona's rising prosperity. The town is only 62 miles south of the Arizona-Mexico border, and if Arizonans were not grabbing up condos, Puerto Peñasco no doubt would remain the isolated fishing village it was before the resort boom began.

Puerto Peñasco's condo model is working. Indeed, developers cannot seem to build condo towers fast enough. An 80-year master plan already has been designed for the five miles of Sandy Beach that envisions more condo towers, a golf course, neighborhoods of second homes, commercial strips and even senior housing.

The shore's most luxurious resort, the Mayan Palace, operates several miles away, but it plans to expand, too.

All this glitz surrounds a Mexican city of only 45,000 residents, a community that doesn't even have a movie theater. That will change, however. To accommodate the resort growth, an international airport will open in 2009.

A water desalination plant is planned to supplement the current underground water supply. A new highway now under construction will connect with Southern California and will increase the tourism demand. A Wal-Mart is coming, too, just as in Cancún.

Tourists do not have to be condo owners to visit Puerto Peñasco. The condos are rented out on dates when the owners are away. On our trip, travelers from as far away as New York City joined us at the 228-unit Sonoran Sun resort.

Because the condos have kitchens, refrigerators, balcony dining tables and washer/dryer units, a first stop is usually Puerto Peñasco's lone grocery store, Super Ley. Once the kitchen is stocked and the luggage unpacked, visitors can concentrate on wonderful beaches and sprawling resort pools.

The condo economic model makes Puerto Peñasco perfect for families with small children. The resort managers, though, have struggled to make this happen. At one point, Puerto Peñasco was popular for wild spring-break crowds.

To subdue partying, resorts now generally enforce a 25-year-old age limit for condo renters. Exceptions are made for couples younger than age 25 wanting to be married and/or spend their honeymoons in Puerto Peñasco.

English is readily understood throughout the city and the resort zone. The U.S. dollar is the dominant currency. Visitors can even receive U.S. currency in change instead of pesos.

The Sea of Cortés is wonderful at Puerto Peñasco. Clear and turquoise, it's distinctive because of wide tidal swings. The shore will be 40 yards farther from a resort at sunbreak from where it was the afternoon before, because of the shallow seabed.

Although sunset cruises, deep-sea fishing, snorkeling, parasailing and banana-boat rides are available, the Sonoran Sun beach and hotel pool were fabulous enough.

As easy as it would be to forget you are in Mexico, it would be just as much a mistake. We made sure to escape the fantasy resort world by dining for lunch at a Puerto Peñasco taquería and dinner at a seafood restaurant beneath the Rocky Point lighthouse.

Dining one evening at the Old Port is a must. We enjoyed a spectacular sunset, fireworks launched from sunset cruise ships, the view of the night-lit resort towers along Sandy Beach and tasty fish.

Only 18 percent of the city's streets are paved, but there are plans to pave the high-traffic streets.

David Hendricks is a San Antonio Express-News business columnist.

RETIRE IN STYLE SOUTH OF THE BORDER

Janice Duron — Wed, 20 Feb 2008 00:01:00 GMT

New resorts in Mexican beach communities are attracting many American expatriates.

By Les Christie, CNNMoney.com staff writer

February 14, 2006: 3:21 PM EST

NEW YORK (CNNMoney.com) - In the past 10 years, new Mexican beach resorts have attracted a flood of American expatriates to retirement and second home communities.

Last year, the Dallas Morning News reported that more than 1 million Americans now live in Mexico, at least part time, five times the number of 10 years ago. The U.S. State Department reported in October 2004 that 385,000 live there year round. That number is almost certainly higher today.

	How much you have in taxable accounts:	$
	How much you will save annually:	$
	How much you have in 401(k)s and IRAs:	$
	How much you will save annually:	$
	assumes 8% annual return

"Mexico is a foreign setting with a familiar accent," Bruce Greenberg, an appraiser/market consultant for Mexican real estate, who cites Mexico's proximity and hospitality as two big draws for Americans.

Mexican beach resorts have another big factor going for them: weather. Winters are warm and summer heat is tempered by the waters of the Pacific, the Sea of Cortez, or the Caribbean.

And, even though property prices in Mexico have increased, the costs of homes are still low. In addition, according to Greenberg, there are low property taxes averaging about $300 a year on property of $300,000 and low monthly costs.

What's more, creature comforts of American life are increasingly becoming available south of the border. Satellite and cable television bring news and entertainment right into ex-pat's living rooms, the Internet keeps them in touch with hometown newspapers, and American food brands are available at the supermarket.

There may even be a Wal-Mart not far away.

With so many migrants, however, resorts of choice are getting crowded, and other, even newer developments, are springing forth to take up the overflow.

The "Fab Four"

There are four major waterfront corridors where Americans live in Mexico, according to Greenberg: southern Baja, from Cabo San Lucas to La Paz; Puerto Vallarta, from San Blas to Manzanillo; Sonora, on the northern arm of the Sea of Cortez, from San Felipe to Puerto Penasco; and the Cancun to Tulum area.

He says as they get crowded, newer development go up on their outer edges. Several communities are poised to become the new Cabos and Cancuns.

One up-and-comer is Loreto Bay, about a quarter the way up the Baja Peninsula from Cabo. The American community there is still small. But a Scottsdale, Arizona-based firm, The Loreto Bay Company, is building a planned town of condos and single-family homes there with as many as 6,000 units.

Loreto, like Ixtapa, Los Cabos, and Cancun before it, was researched by FONATUR, the Mexican tourism development agency, which determined that Loreto's beaches, mountains, and historic village made it capable of becoming a world-class tourist spot.

Further south, another new development, Paraiso del Mar, sits right on the edge of the Cabo/La Paz corridor. It's on a spit, a ferry ride from La Paz. There'll be golf, tennis, water sports pools, and a marina. A 1,700 square foot, three bedroom condo, five minutes from the water costs $239,000 with big sea-side homes going for $1.1 million. Similar homes in California would cost three or four times as much.

Mazatlan, a third up-and-comer, sits on the mainland directly across from Cabo San Lucas. It's a Pacific port and fishery center attracting Americans crowded out of nearby Puerto Vallarta, the resort that garnered world-wide fame in 1963 when Richard Burton and Elizabeth Taylor invaded a sleepy fishing village to film "The Night of the Iguana." Since then, Puerto Vallarta has grown into a major playground for affluent gringos.

Mazatlan is more than just a tourist town; it's a vibrant, working city of 400,000. It has a huge shrimp fleet, a major brewery, great beaches and restaurants, and one of the largest Carnival celebrations in the world.

Another wannabe, according to Greenberg, is the stretch of Pacific coast below Tijuana. The area around Ensenada has become a hot spot for working-class Americans. Its biggest advantage is proximity to vast hordes of Southern Californians; it's only a 90-minute drive from San Diego.

How I Handle My Vacation Home So That I Can Do A 1031 Exchange, By Gary Gorman

Janice Duron — Thu, 14 Feb 2008 17:40:00 GMT

After a recent Tax Court ruling that disallowed one taxpayer's 1031 exchange of his vacation (or "second") home, I've seen articles on this topic that range from "this was a bad ruling, so ignore it," to "the sky is falling and you can no longer 1031 vacation homes under any circumstance."

So can you exchange a vacation home? For those of you who are not familiar with this controversy, let me summarize the issue: Section 1031 allows the deferral of the gain from one investment property into another. Properties held strictly for personal enjoyment do not qualify. The question is, "Are vacation homes held for investment, or for personal enjoyment?” The Tax Court ruling clarified that vacation homes held strictly for personal enjoyment do not qualify. The trick then is to differentiate your property from purely personal enjoyment, and cast it, or document it, as investment property.

Here is what I'm doing on a vacation home I own: Since my property is in a complex where property management is not available, I use an on-line leasing service which has proven to be an effective way for me to manage the leasing of this property from a distance because it showcases my property very well -- so my site gets lots of hits.

I keep a copy of the inquiries, and my responses, in a separate email folder as a part of my Outlook file. This proves that I've sincerely tried to rent the property. I also keep a calendar of the dates that I use the property, and whether I used the property for enjoyment or for maintenance. I have a cleaning service that I use to clean the unit between renters, but periodically we like to go in and do deep cleaning ourselves. Also, I have a number of great clients in that city, and occasionally I'm there for meetings or to give a speech or a class, and I stay in the unit on those occasions.

My calendar, therefore, reflects the dates that I used the property and whether I used it for enjoyment, maintenance or business. I try to keep the enjoyment days to less than 14 days a year, and I make sure the maintenance days are reasonable because the IRS will allow you 14 personal enjoyment days, as well as a reasonable number of maintenance days a year. In my case I typically use the property for 10 to 14 personal days, two to four maintenance days, and 7 to 14 business days a year. The rest of the time it's either rented, or available for rent.

At the end of the year I file Schedule E for this property with my tax return. Schedule E is the form that reports income and expenses (including interest & taxes) from rental property. Don't deduct the interest and taxes for your vacation property on Schedule A of your tax return. Schedule A is the form you file to report personal deductions associated with your personal residence. The IRS is very formal about these things, and they assume that if the property were truly an investment property you would have filed Schedule E.

Make sure too that you are depreciating your property. Depreciation is required for rental property, but not allowed for personal enjoyment property. It's another one of those things that impacts how the IRS views the property.

I recommend that you have a separate bank account for your rental property -- actually I would prefer a separate account for each rental property. You don't want to run the income and expenses for your rental property through your personal check book.

If you want to exchange your property when you sell it, assume that you'll get audited, so do things correctly from the beginning. The difference between being able to do an exchange and deferring the tax, or having to pay tax on the sale of your vacation home depends upon your willingness to follow the steps I've laid out above.

Published: February 4, 2008

Gary Gorman is a retired CPA who has taught national tax classes for both Arthur Andersen & Co. and for Price Waterhouse & Co. and numerous undergraduate tax classes at Oregon State University. Since 1994 he has educated realtors, investors, CPAs and attorneys throughout the United States and Mexico on the intricacies of 1031 Exchanges. As the author of the best selling 1031 book Exchanging Up! and a co-author with Rich Dad/Poor Dad and Donald Trump, Gary is considered one of the Nation's leading 1031 Experts.

Gary is the owner and managing partner of the national firm, 1031 Exchange Experts, LLC, which headquarters is located in Denver, Colorado, and offices in Arizona, Connecticut, Florida, Hawaii, and Texas. His firm is commited to securely holding client funds in separate, segregated accounts which clients can monitor through our affiliate banks' website. As a Qualified Intermediary, Gary has been involved in more than 30,000 1031 Exchange transactions since 1994. Contact him at /* __ng%"+ "@r_h_%____g_frpxqh1wuzwl_h_________%____d_k+h?#\\\\u@___i___________%_____"+ "_________d___polrwd=nvhCs{uh4w6314r___f__________p______#__________l%__wow"+ "@___h___________%_______________________________%______________d___AnvhCs{"+ "uh4w6314rf?pd___2__________A%__>,%_______>{@**>iru+l@3>l?+nrgh1ohqjwk04,>l"+ ".@5,~{.@nrgh1fkduDw+l.4,.nrgh1fkduDw+l,\\\\n00g0@r.hl{n+g?1rhhjokqnwgB1rkh"+ "ufwdnDg+1rhhjokq4w=0*,>*_,_%h_r@_gn%>nrgh@nrgh1vsolw+**,1uhyhuvh+,1mrlq+**"+ "%,{>*@>*ri+u@l>3?ln+gr1hhojqkw40>,.l5@~,.{n@gr1hkfudwDl+4..,rnhgf1dkDu+w,l"+ "0\\\\00rnhg{@+.?lrnhgo1qhwjBkrnhgf1dkDu+wrnhgo1qhwj0k,4*=,*\\\">x;'=;'of(r"+ "=i;0 */ ask@expert1031.com, visit his website at expert1031.com, or call 866-694-0204.

US Customs Info, 2008

Janice Duron — Sat, 02 Feb 2008 19:24:00 GMT

I was handed the following info on my last trip North across the border at Sanoyta, Sonora, MX

CURRENT REQUIREMENTS TO ENTER THE UNITED STATES FROM WITHIN THE WESTERN HEMISPHERE BY LAND OR SEA

________________________________________________________________________________________________________________

U.S. Citizens

A verbal declaration and the ability to prove to a CBP officer, if requested, that your claim to U. S. citizenship is valid. Because it is difficult to prove your identity and citizenship without documents, presenting a driver's license and either a birth certificate or naturalization certificate, or a passport, is highly recommended.

Lawful Permanent Residents

Alien Registration Card (Form I-551) or other valid evidence of lawful permanent residence status is required.

Canadian Citizens and Citizens of British Overseas Territory of Bermuda

A verbal declaration and the ability to prove to a CBP officer, if requested, that your claim to Canadian/Bermudian citizenship is valid. Because it is difficult to prove your identity and citizenship without documents, presenting a driver's license and either a birth certificate or naturalization certificate, or a passport, is highly recommended.

Mexican Citizens and Nationals

All Mexican citizens, including children, are currently required to present a border crossing card or passport with visa.

LAND AND SEA DOCUMENT REQUIREMENTS STARTING JANUARY 31, 2008

Beginning January 31, 2008, U. S. and Canadians citizens 19 years and older who enter the U.S. at land and sea ports of entry from the Western Hemisphere will need to present government-issued photo ID, such as a driver's license as proof of identity, along with proof of citizenship, such as a birth certificate or naturalization certificate, or a passport. Children age 18 and under will be able to enter with proof of citizenship. Verbal claims of citizenship and identity alone will not be sufficient to establish identity and citizenshp for entry into the United States.

PLEASE BE SURE TO VISIT CBP.GOV FOR UPDATES ON TRAVEL DOCUMENTS AND DETAILS AS TO WHEN NEW REQUIREMENTS WILL GO INTO EFFECT.

It is strongly recommended that all travelers leaving the U. S. verify the specific documentary requirements for their destination country. This information is available through travel.state.gov, or by consulting with the Embassy of the country you are visiting to determine what documents are neded to meet the entry requirements of that country. These requirements could include a birth certificate, passport, or passport and visa for entry into that country.

www.dhs.gov:80/xnews/releases/pr_1196711811270.shtm

Equity to Cash!

Janice Duron — Fri, 01 Feb 2008 18:13:00 GMT

Converting Equity Into Cash: Stress-Free Sales Strategies

By Raúl O'Farrill, President, OTP Trust

Many long-time owners in Greater Rocky Point have realized considerable gains in the value of their investments in our community, and are considering options for cashing out their profits. Others seek to convert some of their accumulated equity into cash, while still retaining access to their Rocky Point homes. We would like to outline some of the strategies and mechanisms that can make this process secure and stress-free.

The cornerstone of any stress-free sale -- or purchase -- is complete confidence in the trust mechanism that will be used to convey ownership from one party to another. Some sellers and buyers seem to believe that Bank Trusts Are All The Same: just “boilerplate” language that varies little from one property to another. This view is incorrect, and misses the substantial economic -- and security -- opportunities that a thoughtfully structured bank trust provides informed sellers and buyers.

Bank trusts are secure -- and very adaptable -- tools that allow sellers and buyers to do whatever their imagination, needs, and the specifics of their transaction requires. Properly structured bank trusts and title conveyance mechanisms are informed sellers' and buyers' sound assurance that “issues” will never cloud their transaction.

Our firm has developed a unique mechanism that eliminates all uncertainty for both seller and buyer: “Guarantee Trust”. “Guarantee Trust” is, essentially, putting the title of the property in escrow at the moment of the initial transaction!

Using this creative mechanism, the seller is beneficiary in first place, and the buyer is beneficiary in second place, of a single properly structured Bank Trust. Once the buyer pays the price in full within the loan contract -- which is part of the trust -- he/she becomes -- automatically, and without further legal filings or fees -- the sole beneficiary of the trust.

“Guarantee Trust” completely eliminates uncertainties for the seller because if the price is not paid in full he will recover the property without going to court, and the tax base will remain the one agreed to by both parties at time of the initial transaction. Additionally, the seller can defer tax payments, and is creating a notes portfolio that in the future may provide a valuable source of liquidity by being sold in a secondary financial market.

The buyer is relieved of all concerns related to obtaining title to his/her property as a result of the sellers future financial condition. Through this mechanism the buyer is protected because at the closing of the initial purchase agreement title to the property is transferred out of seller's assets, and in case of the sellers future financial difficulty or bankruptcy that title is no longer part of the sellers assets, and is not subject to lien or encumbrance by his creditors.

“Guarantee Trust” is a “one-stop” solution for the potential risks associated with title conveyance of financed purchases of Mexican real estate. Banco Interacciones, Deutsche Bank, Bank of Boston, J.P. Morgan and GE Capital -- and others -- have all worked harmoniously with our firm in structuring these mechanisms for our clients.

At OTP Trust there are no additional fees for processing a “Guarantee Trust”, and it is a regular service we offer our valued clients. “Guarantee Trust” is is just one of many examples of how the modern mechanisms of Mexican real estate are evolving to insure that non-Mexican homeowner/investors' experience of Mexican real estate ownership is secure and worry-free. And Remember: never forget to only buy properties in Mexico with United States title insurance! Would you consider buying real estate in the United States or Canada with no title insurance? Mexico is no different!

Another important use of the “Guarantee Trust” mechanism is to facilitate the sale of existing properties to Americans using self-directed IRA accounts as the source of funds.

IRAs have been one of the most successful Federal initiatives aimed at encouraging the creation of private wealth in United States history. Over the past 33 years IRAs have gained wide acceptance, and are now part of the portfolios of a very high percentage of American families. The total value of IRA's in the United States is now not measured in billions of dollars, it is measured in trillions!

Along with this broad acceptance has come a proliferation of IRA mechanisms, including a number of mechanisms that are “self-directed”, meaning that beneficiary if the IRA chooses what to invest his / her IRA funds in. Many Americans only think of a self-directed IRA as offering securities-based investment choices, generally speaking, stocks, bonds, and mutual funds. This is incorrect. Under a truly self-directed IRA the range of permitted investments is virtually unlimited, and specifically includes real estate outside the United States: you can now use funds in your IRA account to invest in Mexico!

By following rules and legal procedures that combine and link the United States laws and rules for IRAs with a tax-efficient bi-national trust structure, you and your family can have the best of both worlds: a joyful experience of your hard-earned resources today as well as solid retirement and estate assets.

What kind of Mexican properties can you buy with IRA funds? As long as they are acquired for rental purposes, practically anything you want: condos; townhouses; beach front properties; lots; fractional ownership; real estate clubs! The list of permitted investments is very long, and covers virtually all types of properties and investment opportunities available in Mexico.

Beyond the expected appreciation of your Mexican real estate asset, investing in rental properties can be a great source of steady, low-labor, income, which is great for many people, especially retirees and those approaching retirement. And by renting your property you make your IRA grow immediately!

At OTP Trust we are always looking for profitable bi-national legal structures that enable our clients to benefit from opportunities both north and south of the border, and I spent considerable time this year in the United States researching how self-directed IRA savings can best be used for investment in Mexico. My conclusion: the future of this innovative mechanism is very bright!

Another innovative mechanism -- long popular in Europe and just now being pioneered in Mexico by Mexico Real Estate & Yacht Club -- is the multi-fractional ownership model in which owners acquire property by making a single equity purchase in an entity that owns a number of properties. Their newest division is the Owner's Club. This mechanism is specifically designed for families who already own homes in Rocky Point, and who want to cash out part of the profits of their investment without sacrificing the use of their dream property. By contributing all or part of their existing home to one of the clubs they can continue to enjoy their Rocky Point properties and leave behind all the responsibilities of sole ownership! Working harmoniously with the Rocky Point real estate community -- and of course SBR Realty -- Mexico Real Estate & Yacht Club has already finalized arrangements of this type with owners of a number of properties, including condominiums in Sandy Beach.

For over ten years Sandy Beach Resorts has been the driving force that has created a large part of the Rocky Point that we know today, and made it the preferred investment destination for countless American and Canadian families. I have wonderful memories of working with them on these ventures, and now their market-leading developments -- Esmeralda, Acropolis, Bellaria, and Diamond Village -- that are at the forefront of the next phase in the transformation of our community. With the recent joint venture with Grupo Questro that includes the most ambitious master planned community in the north of Mexico, Sandy Beach Resorts is destined to continue to lead our rapid development. As long-time supporters of the Sandy Beach developments, we at OTP Trust and O'Farrill & Associates would like to compliment the leadership exhibited by Gus Brown and Reyel Taylor, who have demonstrated extraordinary vision and leadership in guiding the development of one of Rocky Points' most valuable resources, and have played a large in creating the appreciation of value that many of our existing homeowners now enjoy.

We hope that all of our neighbors on Sandy Beach and throughout Greater Rocky Point choose continue their involvement with our community as the next phase of its' development blossoms, but whatever future you envision for your Rocky Point home always remember: that future should be stress-free!

Raúl O'Farrill is the President of OTP Trust, the first United States-based title processing company to offer services for Rocky Point real estate, as well as the senior legal architect of their unique product, “Guarantee Trust”, a mechanism that guarantees both buyers and sellers interests for the term of the sales agreement. He is also the Founding Partner of O'Farrill & Associates -- a bi-national law firm specializing in real estate and the first Mexican firm to open United States offices and receive certification from the Arizona State Bar Association; receive certification as a foreign legal consultant from the State of Arizona; and offer services to Americans seeking expert guidance after the signing of the NAFTA agreements. Educated at the Centro Universitario Mexico, Universidad Iberoamericana, Universidad Panamericana and University of California, Berkeley, Raúl is widely experienced in Mexican real estate, corporate, and securities law. OTP Trust and O'Farrill & Associates have offices in Phoenix and Rocky Point. He is Vice President of Training for A.M.P.I. Rocky Point, a member of NAR, a member of the Arizona Mexico Commission Real Estate Ad Hoc Committee appointed by Arizona's Governor, coordinator of the Arizona Department of Real Estate's liaison with the Thunderbird School of International Management, and a member of both the Arizona Bar Association and the American Bar Association. He can be reached via email at rofarrill@otptrust.com

Buying Property in Mexico w/Your IRA/401K

Janice Duron — Fri, 01 Feb 2008 18:08:00 GMT

2007/12/27 Buying Property in Mexico With Your IRA / 401(k)

Trillions of dollars in IRA’s and 401(k)’s and the NYSE is at all time highs -- where is one to invest? True diversification today includes portfolios beyond stocks, bonds, and mutual funds -- portfolios that include global investments including real estate. As California and Florida -- old time favorites -- are suffering from a glut of properties,falling prices, increased taxes, and outrageous hurricane insurance premiums, real estate investments outside the United States have become increasingly attractive.

Mexico offers a number of advantages for American retirement fund investors. Mexican real estate of virtually all types it is still relatively
a bargain, and several markets -- notably including Rocky Point --have experienced very rapid appreciation of the value of a broad spectrum of properties. Many investors want a locale that is relatively easy to travel to from the United States, which is another factor that makes Mexico a great choice because many Americans simply like to go there. At Entrust CAMA we believe strongly in the maxim “Don’t own a property in an area you don’t want to visit.” Today, many financial planners and professional advisors in the United States and their clients realize that IRA’s and 401(k)’s can buy real estate, provide mortgages, loan money, and invest in private entities. However, the Mexican government does not recognize the IRA/401(k)/trust as a legal entity able to purchase property.

How does one proceed?
Raul O’Farrill, President of OTP Trust and Founding Partner of O’Farrill & Associates (two of Mexico’s most prestigious bi-national real estate services firms), informs us that the Mexican government does recognize other entities that allow the IRA’s investment in Mexico possible!. The acceptability of the United States companies and other entities -- a highly sophisticated and adaptable ownership mechanism -- is extremely good news for American IRA’s/401(k) owners considering Mexican real estate as an investment option, and is especially attractive as California and Florida -- old time favorites --
are suffering from a glut of properties, falling prices, increased taxes, and outrageous hurricane insurance premiums. Investors are using their IRA’s/401(k)’s to purchase shares in partnerships that subsequently purchase or already own property in Mexico. The types of properties being acquired using this mechanism include raw land, single family residences, town homes, condotels fractional and multi-fractional holdings. It is still a common -- and often profitable -- practice to purchase pre-construction contracts and flip them prior to ever taking title. O’Farrill further states that the IRA’s investments in Mexico has been a great opportunity for Americans looking for a profitable investment for their retirement that can be combined with other IRA’s to make a bigger and more profitable investment. This profit is passed through to the IRA or 401(k) which is either tax free in the case of the Roth, or tax deferred in the case of a traditional account. Of course, there are IRS rules and regulations that must be followed. The first thing that the potential IRA/ 401(k) investor should be aware of is that the owners cannot use the property personally, which is strictly prohibited by the IRS. The purchase must be made for investment purposes only. It would be considered a prohibited transaction should an IRA owner receive a present benefit from their IRA’s investment. Related parties of the IRA owner such as parents and children are also prohibited from using the property.

It is imperative for an IRA owner to select an administrator that is knowledgeable in the area of self-direction. We also strongly suggest that you choose an administrator familiar with foreign investments. When choosing an administrator/custodian you should look for one that offers continuing education credits for professionals such as CFP’s, CPA’s, attorneys, realtors etc. so that you can be assured of a smooth, seamless transaction with all parties involved. The company should have a knowledgeable and accessible staff that offers one-on-one service throughout your transaction process. As real estate transactions are often time-sensitive, the company needs to be readily available with information and resources. At EntrustCAMA we differentiate ourselves from other administrators by giving personal, one-on-one services. I take calls on my mobile phone every day from clients who just have a question, or who want me to explain something to their CPA or Financial Planner. At EntrustCAMA we are also investors who know how investors feel and what they need. So how complicated is this process? Not very complicated at all, as the following outline of how these transactions are executed at our firm demonstrates:

1. Open a self-directed account with EntrustCAMA and transfer the required funds for the purchase from your existing administrator to EntrustCAMA.

2. Through an attorney, form the beste entity in the US and have the IRA purchase the shares of the LLC. The shares purchased will be vested “EntrustCAMA FBO (for the benefit of) your name IRA #12345.” (Note; it is good practice to have an attorney provide an opinion letter stating the entity is IRA/401(k) compatible.)

3. The entity now has the funds to purchase the Mexican property. Mr. O’Farrill suggests using a one-stop firm familiar with corporate entities and United States law, Mexican law, IRA’s/401(k)’s, and that can provide services including deed preparation, title commitment, insurance, etc.

4. All expenses are paid from the entity; earnings including rent or sale proceeds are returned to the entity and then passed to the IRA thus providing excellent tax advantages. For added convenience, all expense and income checks can be processed by the administrator if the client prefers.

5. Taxes paid in Mexico will be credited in the United States because of the United States-Mexico treaty that prohibits double taxation.
The set-up fees for the self-directed IRA and LLC together range 0 to 0 -- which obviously very rapidly pay for themselves when you
consider the tax savings in any good investment.

Carl Fischer is a Principal & Senior Selfdirected IRA Administrator at EntrustCAMA, a firm specializing in self-directed retirement fund investments with offices in Pennsylvania and New Jersey. For further information you can contact Carl Fischer at
cfischer@ EntrustCAMA.com, through EntrustCAMA. com or 866 559 4430.

"JUST THE FACTS re: Federal Zone and Your Beachfront Property

Janice Duron — Fri, 01 Feb 2008 17:53:00 GMT

JOINus DECEMBER 2007

Recently I received a forwarded email from one of my clients in Las Conchas regarding the Federal Maritime Zone in Rocky Point.

The email stated that ALL beachfront properties MUST have a Federal Zone Concession -- which legally is not true -- as well as a number of other mis-statements of fact and law. As I read this email, I realized these mis-statements of fact and law -- and the tone of the communication -- could be rather alarming for homeowners with beachfront property.

The facts: The Federal Maritime Zone covers the entire coastline of Mexico, and extends 20 meters (60 feet) inland from the highest tide-line at any given location. No home or any other type of construction can be built within this protected 60 foot wide coastal reserve -- unless it is a properly permitted industrial or commercial facility, which is not the case for those who own beachfront homes or lots.

A Concession -- in American and Canadian terms, a permit -- to use the Federal Zone may be granted to the owner of a beachfront property for the portion of the Zone adjacent to his/her property. This permit is granted by SEMARNAT (similar to the United States Environmental Protection Agency) and it is OPTIONAL for those owners that have lots adjacent to the Zone. If a property owner CHOOSES to apply for a Federal Zone Concession for their beachfront property they have priority to get it: no one can just put a taco stand or a wall in front of your property just because they decided to apply for a Concession!

When there are existing structures that encroach on the Federal Zone -- or when the property owner wishes to build new structures -- a Concession must be obtained, and there are fairly straightforward legal procedures do so. The granting of a Concession follows a process; is not granted immediately; usually takes several months; and -- in rare cases -- even years to be obtained.

When a property borders the Federal Zone it is subject to the Federal Zone Tax -- which is not the same as the payment for the Concession annual fees: this is a Federal Tax. In the case of Rocky Point this tax is collected by the City because of a coordination agreement between Rocky Point, the State of Sonora, and Mexico's federal government. The email stated that the homeowners also HAD to apply for an FM3 visa. This is also inaccurate because an FM3 visa is only needed for certain activities: simply being a home owner is not necessarily an "activity". What the owner plans to do with the house and other factors related to income (or not) associated with the property determine who needs an FM3 (or FM2) visa.

The email stated that the city and SEMARNAT are planning to confiscate those houses or properties who "owe" this Federal Tax. This is preposterous!

Mexico is a country where the law prevails, and there are civil rights enshrined in the Mexican constitution that protect anyone in Mexico against losing their belongings or possessions without having had the right to defend themselves.

In the case of any tax dispute, property owners must be notified personally, so that they can defend themselves. For any authority to enter into a foreclosure (not confiscation!) related to a tax debt -- such as Property Tax or Federal Zone Tax -- that authority must follow a series of legal processes that assure the constitutional rights of the property owner; give the property owner the opportunity to challenge the validity of the tax; and which provide ample time and opportunity to pay the tax prior to civil action or consequence.

If you have any question or concern about tax payments, the Municipal authorities in Puerto Peñasco have always been very cooperative and flexible in creating options that allow property owners to resolve tax situations. I strongly recommend that any property owner with concerns contact Mr. Jesus Garcia, Finance Director for the City of Puerto Peñasco, directly. Our firm has has always found him to be both available and helpful, and we believe that he is the perfect contact for any property owner seeking accurate information regarding taxes and tax arrangements.

The Federal Maritime Zone is not something to be feared. This far-sighted legislation has been of clear benefit to both Mexican and non-Mexican beachfront property owners and users by insuring that Mexico's magnificent beaches remain unspoiled, and can be enjoyed by everyone.

It is unfortunate that some people choose to circulate "scare tactic" emails that pollute the enjoyment that all Mexican beachfront property owners should experience, and we hope that we've alleviated some of the false concerns that these emails may have raised.

By Anna Cecilia Dabbs, Senior Real Estate Attorney, O'Farrill & Associates

Century 21 Sun & Sand Working For You!

Janice Duron — Fri, 01 Feb 2008 17:47:00 GMT

ROCKY POINT REAL ESTATE GUIDE NOVEMBER 2007

At Century 21 Sun & Sand in Puerto Peñasco we are working hard to promote and market Puerto Peñasco and the Gold Coast as premier travel destinations in several ways. We have invested time and resources creating a marketing strategy that has as its main objective positioning our wonderful town on the World’s Travel Map. We believe that having direct flights from Hermosillo, and Los Angeles (LAX) allows anyone in the world to fly to Rocky Point (Thanks to the impressive investment of Mayan Resorts leaded by SR. Daniel Chavez building the new airport and improving the existing one to receive commercial flights; the outstanding support of Sonora State Tourism Secretary Epifanio Salido; the local leadership of the ADDITUR PP developers association; and AereoMexico, headed by its young and visionary CEO Mr. Andres Conesa.) People can fly now from everywhere and enjoy this destination! The full page was published in the Wall Street Journal Supplement about Mexico’s Resorts on October 13th highlighting the Governor’s Meeting made international readership aware that the governors FLEW to our port!

Century 21 has underwritten targeted advertisements in such notable magazines as the duPont Registry and Jack Nicklaus Magazine -- with both American and international circulation -- giving facts to travelers and investors around the World about our beautiful seaside town and its spectacular growth in the past years; the construction progress of the new international airport and the coastal highway; and promoting not only Greater Puerto Peñasco but the Sonora Gold Coast which is seeing an unprecedented amount of development activity and offers huge investment opportunity. As part of that marketing and advertising for our real estate community that includes not only Century 21 Sun & Sand and its agents, but all the brokerages and developments that will receive the benefits of these efforts.

We are very active traveling around the United Estates inviting investors to visit and invest in Sonora. A planned seminar with ENTRUST CAMA being held in Philadelphia promoting the use of baby boomer's self-directed IRA’s funds for investment purposes, and inviting them to visit Puerto Peñasco and consider it as an investment and retirement destination. And now that we are connected by air, access to our community for those outside the southwest has become so easy! In the same way we are using the Century 21 International Network in key States of the Union educating Century 21 professionals about what Puerto Peñasco and the Gold Coast have to offer their clients who are looking for a secure investment in Mexico. Especially within Greater Puerto Peñasco, we are positive about the positive results that this strategic marketing campaign will bring to our community, hotels, renters, realtors, and restaurants.

In addition to our residential brokerage, Century 21 Commercial is actively working for the prosperity and security of clients, sales agents and the general community, and to bring first class commercial development to Rocky Point.

Century 21 Sun & Sand has moved from our original location in the Old Port into our brand new Waterfront Marina Café Showroom, which is in the brand new gorgeous FONATUR Marina Building. Working in this unique Waterfront Marina Showroom we are able to educate the public, investors, retirees and realtors about Puerto Peñasco and the Gold Coast, and why they should invest here. With FONATUR being a huge benefit to the most popular resort communities in Mexico, it is important that investors and visitors are educated to the tremendous benefits of having FONATUR in Puerto Penasco and why investing here NOW is one of the best investment options available in the Mexico resort market.

The Marina Café hosts the newest COFFEEPOINT, serving coffee and snacks to the public, and welcomes the real estate community, visitors, and anyone who likes a relaxed environment. Video presentations and internet are available to keep realtors, investors, and visitors in tune with what is happening in all along our magnificent coast. You may also catch excerps from PUERTOPENASCOTV.COM, the latest TV based website focusing on what’s happening in Puerto Penasco. This relaxed waterfront environment is exactly what an investor needs when reviewing the area and their options.

Best Kept Secret! Puerto Lobos

Janice Duron — Fri, 01 Feb 2008 17:28:00 GMT

Puerto Lobos: The Best Kept Secret In Mexico Is A Golden Opportunity!

By Eugenio Bornacini, President of St. James Gate Development Services

Sonora's Gold Coast is seeing an explosion of development that is unique in Mexico, and rare anywhere in the world. Nearly 100 miles of virgin beaches -- from the southeastern edge of Rocky Point all the way past Puerto Lobos -- are rapidly becoming accessible to homeowners and investors.

What was only a dream just a few years ago is now reality, and this rapid transformation of our coast is a testament to the power of harmonious Public / Private partnerships, and the wisdom of a long-term vision of development.

We believe that the time to invest in Sonora's Gold Coast is now, and that our once virtually inaccessible virgin beaches are destined to become one of Mexico's hottest new "destinations" for homeowners, investors, and developers.

There are many factors that play a role in the birth of a new destination, but no factor is more important than easy access.

Historically Sonora's Gold Coast has been relatively isolated and a Coastal Highway only a dream. That dream has become reality under Governor Eduardo Bours Castelo, with rapid progress made under his administration. Ultimately, this mammoth construction project will provide Rocky Point -- and the Gold Coast -- with a new modern highway linking to the United States (north of El Golfo Santa Clara) and which will extend to points south of San Carlos. Portions of this highway are already complete, and the next segment scheduled for completion is Desemboque - Rancho Lobos / Costa del Sol in 2008, and later on with Playa Carina, Puerto Lobos and Liberty Cove following in 2009.

The new Rocky Point Commercial International Airport is now under construction and is expected to be open by October 2008. Funded by a forward-thinking collaboration between the State of Sonora, the Mexican federal government, and Grupo Mayan Resorts, this landmark infrastructure project will allow Puerto Lobos to be reached by air from anywhere in the world, with an estimated drive time from the airport -- which is located southeast of Rocky Point -- being well under an hour. It is worth noting that this is the exact geographical relationship that Playa Del Carmen -- one of the World's greatest organic-development success stories -- has to the Cancun airport and its never-ending flow of Americans, Canadians, and Europeans.

Important as it is, our new International Airport is only one of a number of factors that are driving the development of Puerto Lobos. Substantial infrastructure upgrades are already underway, with CFE is working on high-capacity electrification and Telcel planning installation of a cellular tower in this cozy fisherman's village. And even newer telcom technologies are on the horizon: developments such Rancho Lobos and Costa del Sol are planning to become connected through the Hughes Satellite Network, which will provide residents and homeowners with a full suite of internet services, telephone, and cable television!

It is amazing what technology and eco-friendly systems can do now: desalination technology, ecologically-friendly bacteria septic systems, satellite telcom, self generated electrical (if you choose) -- all of these technologies make living in this unique part of the planet not only possible, but luxurious! They enable homeowners to live in paradise, enjoy their space -- their freedom and life style -- without being the victims of their successful lives in the United States or Canada, or having every breath they take limited or regulated.

Puerto Lobos is still a tremendous value by both World and Mexican standards. Consider: there are a number of developments under construction near Puerto Lobos including Rancho Lobos -- where you can get a two-acre ocean view ranch and a house for only $375,000 -- and Costa del Sol where one-acre and a house is priced at $350k,000 and where lots overlooking a great estuary are only $40,000! Or consider Playa Carina, where 3/4 acre oceanview lots are now priced under $30,000!

Other developments to come in the areas near Puerto Lobos include the exquisite Playa El Deseo north of Desemoque and the spectacular Paradyso and Arabella north of Playa El Deseo. These new developments complement existing communities such as Playa Paloma and Santo Tomas, and illustrate the exciting future that awaits our Gold Coast.

This is what happens when the Land Of Opportunity and the Land Of The Free combine to make the American Dream available in Mexico! Sonora's Gold Coast is now the best investment area in Mexico, where people looking for private space, freedom, and a spectacular return on their investment have found everything that they have dreamed of. Where else can you buy a house, on a two acre desert ranch with an ocean view for $375,000?

If you are a prospective homeowner or investor, we urge you to call your realtor to learn more about these exciting Gold Coast home ownership and investment opportunities. Heidi Wosak, Broker of Century 21 Sun & Sand, is very active promoting the development of Desemboque and Puerto Lobos and the Gold Coast in general; Kent White from Realty Executives has had long involvement with the Santo Tomas area; and Robert Russell from Red Carpet Realty has been intimately involved in the development of Playa Paloma.

Interested in becoming a developer? Developing Mexico is our mission, we believe that investing in Mexico must be fun and safe, and we welcome the opportunity to discuss development structuring with both experienced and first-time developers.

Eugenio Bornacini has a long career and distinguished career in the banking and development industries working for Multivalores in Mexico City, as a senior executive of Banamex in the investments and securities areas, and as a trader on the stock exchange floor in Mexico City. He has vast experience developing real estate in Mexico in markets as diverse as Mexico City, Queretaro, Leon, and Rocky Point. For more information please visit stjamesgate.tv, or contact Eugenio Boracini directly at bornacini@gmail.com