In this video, I discuss different financing options for folks from the U.S. looking to buy property in Mexico.
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Sorry, folks. I accidentally deleted the text file associated with the video. I hate when that happens.
Links
MoXi Financing: https://qrco.de/MoXiFinancing
MoXi Refinancing: https://qrco.de/MoXiRefinance
Can Foreigners Own Property in Mexico? https://youtu.be/ZODUhp8MSA0
Join our Patreon page to attend our live online Q&A sessions and to ask us questions directly: https://www.patreon.com/qroo
Excellent information. Thanks.
Bueno dias, love your videos! I have hearing problem so rely on captions. Here is the transcript from Youtube Captioning (enable the CC button, click on three dots to open transcript window) Saludos!
Transcript
0:00
hey everybody kiru paul here welcome to
0:02
the channel in today’s video i’m going
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to be talking about different financing
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options for foreigners who want to buy
0:07
property in mexico
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now this is something i get asked a lot
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about because you know buying property
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in mexico is not as simple as going down
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to your local bank in the states and
0:16
applying for a mortgage i’m sorry sir
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the property is located where
0:20
[Music]
0:21
so today i’m going to talk about some
0:23
other popular finance options
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for people in your shoes and maybe you
0:27
can find the one you know works best for
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you
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all right
0:30
the first one i’m going to be talking
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about is one that people typically ask
0:33
me about and that is getting a mortgage
0:35
directly through a mexican bank although
0:37
this may seem like a reasonable solution
0:39
on paper because you know you go to
0:40
banks back in the states
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i never ever recommend this option
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because the truth is you will end up
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paying way too much for that property
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take a look at this this is an online
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mortgage tool from conducef that is a
0:53
government agency in mexico that
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protects the rights of people using the
0:57
services of financial institutions kind
1:00
of like a consumer protection group on
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the site you can enter some data such as
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the cost of the property and pesos you
1:06
might be looking for the down payment
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you plan on leaving and the term of the
1:10
mortgage the website will then give you
1:13
the fees interest rates and a lot of
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other information
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um pulled from various lending
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institutions in mexico that way you can
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kind of get an idea of what are my
1:22
payments going to be what’s the total on
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the paying what are my interest rates
1:26
going to look like etc so i’m going to
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plug in some numbers here and let’s see
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what we find out okay right away i’m
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seeing horrible interest rates
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as i look through them it looks like the
1:36
average rate is around 10
1:38
or more
1:40
and the highest on this list is just shy
1:43
of 12 at 11.99 percent but that’s not
1:46
even the full picture of what this
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actually costs you
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mexican banks are notorious for their
1:53
ridiculously high fees take a look at
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that category over there on the right
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that’s the cat category
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what that is is something special they
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do in mexico to help protect people a
2:04
little bit more
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from this type of you know predatory
2:08
lending and what they do is they’re
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working in those fees along with the
2:12
percentage rate to show you really what
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you end up paying in percentage so with
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all that factored in look how high those
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cat percentages are they are insane
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honestly i i don’t know who would sign
2:25
up for this if you have any other option
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now occasionally you may see a lower
2:30
percentage rate advertised you know to
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kind of lure you in but chances are that
2:35
it’s either not a fixed rate so that
2:36
thing’s going to be just changing as we
2:38
go or there’s some other you know catch
2:41
in there like even heftier fees or
2:44
perhaps a balloon payment i definitely
2:46
would not recommend going the mexican
2:48
bank route at all that brings us to the
2:51
next category cross-border mortgage or
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lending companies these are companies
2:55
who specialize in these types of
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purchases for example they give loans to
3:00
american citizens who are trying to buy
3:02
property in mexico sound familiar there
3:04
are a small group of lenders that offer
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this type of service and they are not
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all created equal in this section i’m
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going to be telling you about one that i
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think stands out above the rest and that
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is a company called moxie just to be
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transparent here this is a sponsored
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post however i only endorse products and
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services that i truly believe would
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benefit our viewers if you’ve been
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following me for a while you already
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know how rare it is in the last six plus
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years that i’ve been telling people
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about living in mexico first as a
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blogger and now as a youtuber i have
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literally received
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hundreds of requests to do sponsored
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posts and i’ve turned down 99.9 of them
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that should tell you something about the
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companies that i do choose to work with
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i am very discerning so
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what is it about moxie that makes them
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so special frankly i’m impressed by how
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they do business the service they
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provide and how they make it safer for
3:56
americans to buy property in mexico so
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i’m going to break this down for you go
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through some key points
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moxie is backed by billions of dollars
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of capital and is regulated and audited
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in both mexico and the united states i
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like that u.s connection a lot and the
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u.s connection doesn’t stop there they
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offer secure u.s originated and serviced
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fixed-rate 25-year mortgages to u.s
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citizens buying in mexico moxie’s rates
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are very competitive and i don’t mean
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mexican bank competitive because well
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those were terrible weren’t they i mean
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actually competitive there are no
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balloon payments or hidden fees in fact
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many americans refinance our mexican
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homes through moxie because they’re
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currently in financial agreements with
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fluctuating interest rates high fees or
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balloon payments the loans are in u.s
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dollars not mexican pesos so you don’t
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have to worry about currency
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fluctuations affecting your payments the
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loans are reported through the u.s so
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you can actually deduct the interest
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that you paid on these on your u.s tax
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return now let’s talk a little bit about
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safety and security of your purchase in
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mexico
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title insurance and a commercial
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appraisal are coordinated by moxie in
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every deal to guarantee the security of
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the purchase now that may not sound like
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a big deal but these things are actually
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pretty rare on the mexico side at
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closing moxie provides an attorney a
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translator and the notary public is
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going to be there and the attorney is
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going to go through all of the paperwork
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line by line with you to make sure you
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understand everything and answer any
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questions this is a company that’s with
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you every step of the way to make sure
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the purchase goes smoothly and is
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recorded correctly to ensure property
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ownership
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that is huge and i’ll tell you why i
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mentioned that a lot of americans
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refinance their mexican homes with moxie
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right well according to the folks at
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moxie of those americans that have
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it was discovered that approximately 40
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percent of them did not really own their
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home in mexico because the paperwork was
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not handled correctly at the original
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purchase some aspect of the process was
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left undone and this error was only
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discovered during the refinancing stage
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pretty scary huh that’s why i really
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like moxie and i think they’re a good
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option for folks who are looking to
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purchase property in mexico you can
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learn more about moxie by going to the
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url that’s on the screen or you can
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follow one of the links that i put in
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the description portion of the video
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alright
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now let’s go on to our next financing
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option developer financing if you’re
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buying property in a development in
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mexico that was built or is being built
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to attract foreign buyers then the
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developer will often offer some type of
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financing anytime i mention developer
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financing in a video and i talk about
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them building these certain developments
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with certain clientele in mind someone
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will ask me well how do you know that
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they’re trying to attract foreign buyers
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paul it’s really not that hard to figure
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out you’re going to know that these are
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developments aimed towards foreign
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buyers because their websites are
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primarily in english and their prices
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are in u.s dollars not pesos those are
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pretty good indications their website
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and advertisements will also have what
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appears to be
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a bunch of gringos smiling laughing and
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just generally having a good time the
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finance options that developers
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typically give can vary widely from one
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developer to the next it’s not just a
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one size fits all and those terms can
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also change quite a bit depending if the
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property is already built or if it’s a
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pre-construction just to give you an
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idea of what you might expect here are
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some financing terms that i obtained
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from a developer who has projects on
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both coasts and mexico
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for a pre-construction project they want
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five thousand dollars down
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twenty percent of the purchase price at
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signing this is due within 15 days the
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next 30 percent is due by the completion
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of construction so you’ve paid 50
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by this point the remaining amount can
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be financed over five years at seven
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percent if the property is already
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constructed and you’re coming in to buy
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it then you’re going to jump right to
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that 50 mark 50 down and finance the
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rest over five years at seven percent
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five years is a pretty short period of
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time that’s not really financing in my
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opinion especially when you’re talking
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about properties that are hundreds of
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thousands of dollars you know that’s a
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lot of money now there are developers
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who have arrangements with companies
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like moxie or with mexican banks to
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facilitate financing for their clients
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uh if they are working with the latter
8:09
those mexican banks be sure to look out
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for the things i mentioned in that part
8:13
of the video before you sign once you
8:15
sign it’s way too late okay the last
8:18
option i’ll be talking about today
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are second mortgages and personal loans
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that people take out back in the states
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whether or not this is a good option for
8:26
you is going to depend on your
8:27
particular circumstances you know how
8:29
much equity you have in your house how
8:31
much you’re really going to be able to
8:33
borrow how long is this loan going to be
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and is the money you get coupled with
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whatever savings you have going to be
8:40
enough to cover the entire purchase
8:42
price of the property in mexico if not
8:44
you will still have to find a way to
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finance the rest of the purchase and
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then you’re right back here trying to
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choose one of the options i just
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discussed well there you have it those
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are some popular methods to finance your
8:54
property in mexico which one is best for
8:56
you will depend on your particular
8:58
circumstances before i head out i just
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want to say that anytime i do a video
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where i talk about buying property in
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mexico
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some folks will inevitably ask me in the
9:08
comments section about the legalities of
9:10
foreigners buying property in mexico
9:12
they’ll say something like oh i heard
9:14
foreigners can’t own property in mexico
9:16
they can only just lease it that’s not
9:18
true but it is a really common belief so
9:21
i actually have another video talking
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about just that subject and i encourage
9:26
you to watch it after this one if you
9:27
like i’ll make sure i put a link to it
9:29
in the description portion of the video
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thank you very much for watching this
9:31
video all the way to the end and
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supporting the channel until next time
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hasta luego
You cover Living in Mexico… future topic suggestion, could be covered in a coffee break: what is a NOTARIO, the critical difference from an USA Notary, and common services + costs (ie, letter, certify copy, etc) Saludos