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How and Why
If you are looking for a long term investment, a short term opportunity or a vacation getaway home there are some rules hat, if followed, will mitigate your risk and ensure the property you purchase will not only offer a superior lifestyle but also steadily increase in value over time.

Rules of Buying Resort Real Estate in Mexico
  1. Buy on the ocean Beachfront property has been the best investment in the world since the beginning of mankind.
  2. Buy developments as they are being constructed. You make the most money, and achieve the best value, if you buy property as it is coming out of the dirt.
  3. Buy from an experienced, well capitalized builder with a proven track record. We all love entrepreneurs but you do not want to turn your money over to one in Mexico on the promise they will delivery a high quality condominium to you in a timely manner.
  4. Buy in a progressive community like Mazatlan that is adding championship caliber golf courses and offers a marina with plenty of dock capacity. These two amenities, more than anything else, have proven to be a catalyst that drives the growth, and the price appreciation, in a resort destination.
  5. Buy in a growing market that has not risen dramatically in price. Cabo San Lucas is a nice place however the time in buy in Cabo was 1997, not 2007. Mazatlan is in the very early stages of the same type of price appreciation experienced in Cabo and Puerto Vallarta over the past seven (7) to ten (10) years.

Rules of Buying a Specific Resort Development
  1. Location. Typically the most important criteria when buying real estate is location. The property needs to provide both lovely ambience and convenient access to amenities if you expect your investment to rise in value while also offering a wonderful lifestyle.
  2. Resort Amenities. Make sure your property offers the services people expect to find at a five star hotel. For example; beachfront infinity pool, restaurants, bars, room service, multiple Jacuzzis, day spa, steam room, dry heat sauna, 24 hour concierge, child care, shopping service, full business center, laundry service, work out center, multi media room and the like. Donald Trump recently used this concept of wrapping five star amenities around residential oceanfront condominiums at Trump Baja. That property sold $123,000,000 of condos at a one day auction in late 2006.
  3. Open Floor Plans. Make sure the condo you buy has an open floor plan with a great room that not only offers a spacious living environment but also opens up the view and maximizes the Wow Factor of the property. This is the modern way to build and the type of live space people are beginning to demand. You do not want to be stuck with a narrow, choppy living area when the buyers desire an open living environment.
  4. Buy the Penthouse. If you are looking for an investment the larger, more exclusive units not only appreciate faster in value they are easier to resell because of their scarcity. And in growing resort communities like Mazatlan there is always going to be a niche at the very top of the market for premium property.
  5. Buy Early in the Construction Cycle. Once you locate a property that meets the criteria for a solid investment you should buy that property as soon as possible. Beachfront condos are appreciating at about 2.7% per month in Mazatlan and as more of the inventory is sold in a development the prices of the remaining condos are marked up in price.
  6. Developer Financing. If you buy a development when it is first being built there is usually a lag time of between 18 and 24 months before the property is completed and ready for the owner to take possession. The best way to leverage your cash in making such a purchase is to use the financing supplied by the builder. You can put down 30% of the sales price and then not make another payment until you have completed your final walk through and taken occupancy of your unit. During this time the developer should carry the financing at something under a 5% rate of interest. The interest payment simply accrues and be added on the back end of the note.