Streamline your process for closing a deal with a client in Mexico

How to create outlook signature

it's Anthony Young over here at Moxie and I'm taking a very special opportunity to talk with our CEO Alex Cooper about some common questions that I'm getting from my clients concerning buying real estate in Mexico um very happy to have Alex set some time aside today to answer some of those things well awesome I'm really excited to be here thanks so much for setting this up Anthony this is going to be fun I really I don't often get to hear um you know every day what what are you know common questions that that clients and potential clients have about uh what we do so pretty excited to uh to hear about those one common question I get is what kind of time frame can someone expect when closing a transaction in Mexico you know in the U.S someone could say hey I got a 30-day contract a 45-day contract and you can almost set your watch to that what differences do you see when related to financing a property next okay cool well yeah that is a great question Anthony and you're right you could totally set your clock by it I've even heard in you know some areas of the US especially during the peak of the real estate boom post covet or in the middle of covid um you know that there were transactions closing in 17 or 20 days um right and that's definitely not the case in Mexico I think it really depends on a number of different factors many of which our clients or potential clients can't necessarily control so um this is where the expertise of the Moxie team is is really comes into play and is really valuable for um you know buyers uh and or you know potential refinancers of property in Mexico so we're our legal and closing team is looking at every aspect of the property including the way that it's vested so in a purchase transaction the seller um can either hold the property themselves in a feeding commiso because they're a foreigner or they can hold or or the seller may be a Mexican entity or a Mexican person uh or people and so in that case um the property wouldn't be vested independent can be so right so it it really depends on the structure of the subject property and how it's currently held and that will dictate the timelines so in the example or in the instance where the subject property is owned in a feta camiso already and the buyer is buying it and using Moxie financing also to be an affida camiso then uh the Moxie team will look at either of two paths forward one would be to transfer effectively that feta camiso from the seller to the buyer um and that would involve what we call a substitution of beneficiary as well as a substitution of fiduciary uh in many cases right switching the bank that manages the fide camiso uh to the one that's approved um through Moxie as well as switching the beneficiaries right so the seller is relinquishing um their interest in the property in favor of the buyer so that could elongate the cycle time a little bit longer than for example a situation where the seller of the property is a Mexican Corporation or Mexican natural person um and there are a lot of different ways that you go about doing that right in the event that you're modifying or changing the feet of camiso in favor of the buyer um that you know could take depending on the fiduciary bank that currently holds the fee to me so it could take as long as 90 days just to do that substitution it doesn't mean that that substitution happens 90 days passes and then we start the rest of the process I think what many maybe don't know is that wall the substitution or and or cancellation of the feta camiso is in process Moxie is working on all of the other items that are required in order to do a legal property transfer in Mexico so at a high level regardless of whether you're paying cash or using Moxie financing in order to do legal close I think it's probably important for folks to understand that those cycle times are going to be likely 45 to 90 maybe even longer days depending on various different aspects of the transaction Moxie has in its past done transactions in a shorter period of time um our record is 23 days and that was a property in a non-restricted Zone um but it really just depends on so many different factors so I think it's probably safe to assume 60 to 90 days um there are situations and or circumstances transactions that can happen in a shorter period of time um and even in a longer period of time uh I think that other really important thing to mention here is Moxie will and our customers rely on us to ensure that properties are transferred legally and that the buyer actually owns what it is that they're buying and we're going to make sure of that so um we're looking at everything from the title to ensuring that the construction is properly manifested with the right legal legal entities in Mexico we're also looking to ensure that you know if the property is subject to a condo regime that that's been properly recorded with the public registry so we're checking all of these various different aspects of the transaction to ensure it reports legally and that the Moxie client um actually you know has the asset that they're paying for uh so I think that all goes into the time it takes to close a transaction it's interesting for clients that are legally transferring the property uh regardless of whether or not they use financing it's the same amount of time right so Moxie has this process down pretty um pretty well right in a number of these areas are digitized to the extent that they can be to bring the cycle time down to uh you know as short as as the time frame as as is you know possible legally but it really is immaterial so whether you pay cash or whether you do financing illegal closing is illegal closing in Mexico um and you know it's it's no longer um the cycle time is no longer uh than it is um when you're when you're paying cash if anything I think the um investment that Moxie has made in the process uh the the legal transfer process um results in it in a shorter cycle time so I think we could all probably point to those situations or circumstances where Moxie's ready to fund the escrow and do the closing but the buyer and seller maybe aren't or uh the real estate agent isn't or the notario isn't so uh I don't know hope that's helpful it certainly is thank you that was a very well worded uh answer I have noticed most success when I'm advising my clients in situations where they have a realtor you know before even getting a pre-qualification that we have that conversation as soon as possible even before the contract is written and I do advise those clients to write their contract for 90 days with a 30-day extension because legal property transfer is longer than we are used to as U.S citizens and U.S taxpayers I think that's a really good point um and I think the other cool thing that I've seen you do is uh really hone in with the uh with the real estate agents so either the one representing your client the buyer or the one representing the seller of the property to get information about the property and get that ahead of time so if if you know when I've seen you do it before right when you're getting all of the documentation that comes in the sign stamped public deed as an example um then we know right up front uh is this property held in defeated camiso is that feeder camiso going to need to be canceled or can it be modified um who is the bank that currently manages it what are their cycle times right some of those Banks take 90 days to do this substitution or cancellation uh some of them only take 10 days right so uh the Moxie team knows all of that so and and I you know the diligence that you do up front is hugely important to reducing those cycle times and setting proper expectations so that folks can write their offer um buyer and seller can be on the same page with respect to uh how long the transaction is going to take so I think that's awesome I love that you do that foreign