Lost in Translation Mortgages In Mexico

Lost in Translation Mortgages In Mexico

Eight years ago approximately when I first visited Mexico with the idea of doing my first commercial deal in Tampico/Cd. Madero my hometown, little did I know about the different business concepts, practices, and most importantly, legal concepts of doing business in Mexico.

And even after unsuccessful efforts of procuring funding from USA institutional and private investors for projects in Mexico, I was encouraged by the fact that, at that point in time, the Secretaria de Economia (or Department of Commerce in the USA) was entering into an interesting process of information exchange with the Small Business Administration in the US so as to implement some already successful programs into the Mexican legal and economic processes.   Eight years later, I find myself still “lost in translation” with respect to the way business is done in Mexico.   

And though it is encouraging to find out that after several years of efforts the Government of Mexico seems to finally have been able to improve the process of foreign investment in Mexico, it is also a fact that there is still a lot of work to be done in the process of encouraging the regular individual foreign investor to participate in Mexico’s emerging economy.  And the reason for this failure is the lack of available information to the general public, primarily to the foreign investor, in that regards.

Yes, there have been some mayor changes as to the legal process to encourage foreign investment in Mexico, however this has been mostly focused to the big international investment corporation groups.  One such improvement has been the implementation and modification of the LISR (of Capital Gains Law) which in turn has encouraged the creation of REITs in Mexico.

Therefore and based on our Mortgage and Real Estate background in the USA and now in Mexico, and after participating in the process of procuring USD dollar mortgages in Mexico in the last 6 years, which are now extinct, we have been arduously looking for an investment vehicle to bring back that investment product to life in Mexico, thus entering into the process of the creation of the first Mortgage REIT in Mexico.

And here is where we have become “LOST IN TRANSLATION”.

A Mortgage REIT is still a very innovative concept in Mexico, therefore it has not attracted the necessary attention for participation; either from Mexican national investors, nor from foreign investors, as a whole.  Consequently and in our continued efforts to bring back the USD mortgage market in Mexico, we have come across a new concept that would provide the certainty and benefits of a tax shelter investment for foreign investors in Mexico.

The answer to this the establishing of a Private Equity (read the following article regarding Private Equity in Mexico,  http://privateequityinmexico.blogspot.mx/2013/06/private-equity-in-mexico-primed-for.html)

A Private Equity investment through the creation of a Fideicomiso de Inversión of Capital Privado (FICAP), is an investment vehicle that will be able to provide the funding for the Mortgage REIT and further give the investor the control and certainty required to guarantee a secure investment in Mexico.   A fideicomiso is a TRUST and therefore provides the highest level of security and guarantee to any foreigner wishing to invest in Mexico. 

For further information on how to have a secure investment in Mexico, feel free to contact us.

Mexico Realty Solutions
Mortgages "R" Us

Enrique (Henry) Saldana
Off: (984) 147-1305
Cel: (984) 111-8743
Español, English, Français
moneylendingbus@hotmail.com
www.mexicorealtysolutions.com
www.mexicohomerealtycenter.com

Skype: Mexicorealestate