I Need Advice on Investing in Mexican Real Estate (International)

[Kristin Kiddy]

Hi everyone.  I need as much advice and input I can get about buying property in Mexico.  Background:  My husband and I lived in Manzanillo, Mexico for 2 years and we are very close with a family there.  We go back and visit often.  Manzanillo is a booming port city with lots of growth, construction, and jobs.  Our friends bought a house a few years ago.  It is only 3 years old and in a nice part of town.  The problem is the husband lost his job and his new job doesn't pay as much.  They owe aprox. 35,000 usd to the bank on the mortgage of their house (they have about 1/3 equity in it).  They will loose the house and most of their equity if something is not done very soon.

My husband and I want to pay off the bank loan and, using a lawyer there, set up an agreement where we would own 2/3 of the house with the friends owning 1/3.  The friends would pay us 2/3 of the market rent rate to live in the house now. (Expenses would be divided)  In the future if either party wants to sell the house, then profits would be divided 1/3... 2/3 accordingly.  If one party wants to buy out the other party, it would be either 1/3 or 2/3 going market rate at the time.  

The house has already appreciated 5% annually in value in the last 3 years and with all the economic activity, I'm confident it will continue to appreciate (barring a catastrophe).  With them paying us rent, we will see a decent (just not stellar) return on our money.

What I need is all the ins and outs of buying in Mexico.  I know for example that foreigners cannot own property within 100 km of the coast so you have to own it in a trust.  I don't know the other snags that only someone who has done it before can divulge.  

If ANYONE has any experience with purchasing property in Mexico.  PLEASE POST!

Thanks.