A MEXICAN CORPORATION.
This corporation can be formed in two weeks, approx., with at least two partners. (They can both be foreigners; no Mexican citizen is needed, SO DON’T FALL FOR THAT STORY) It costs a maximum of $1,500 USD and from there you can use it to acquire property through a normal transaction as a Mexican national would (basically because the corporation is a considered Mexican person and can do everything that a Mexican can do).
So, in a month and a half you can have the corporation formed and the property under its name. You can also buy a car and pretty much anything you want with it. Price, speed and tax deductions are some of its benefits!.
The corporation requires an accountant, but the reporting can be simple with the right professional.
Also, to act on behalf of the corporation as a partner you need to get your resident status, otherwise you will have to act through powers of attorney given in the corporation to a Mexican resident (which means that somebody else will have, for lack of a better word, control of your money, land, car, and everything you buy or do through a corporation, however it is not difficult to obtain permanent residency).
Everything, and we mean everything you buy through a corporation, has to be done through a check and or wire transfer made from the corporation bank account, so cash is not an option.
And finally, there is no way to avoid capital gains when selling the property, so if you manage the property properly and get fiscal receipts for everything you do in the house, you can deduct that against the profit at the time you sell to lower the tax bill, but you can´t avoid it completely.
Which is why, this is the best option for people interested in starting a business, so our advice, if you intend to open a business or even buy property for a non-residential reason, a corporation is the best route. It will save you some money on income tax, and most of all, it will allow you to create a legal source of income in the country.
REAL ESTATE FRAUD
Fraud and investment scams abound at all levels of the real estate market – whether it be a contractor who charges hundreds of dollars for work not done to an “investment agent” who embezzles hundreds of millions – protecting yourself can require a measure of vigilance and legwork, but it can also come down to exercising skepticism and common sense.
The most common scam we see are sales involving forged deeds. This occurs when the seller really is not the true owner of the property, instead they have forged the prior owner’s signature in order to obtain legal title to the property. The average buyer has no way to protect themselves against a forged deed. There is no protection because even if the buyer had no knowledge of the forgery, the buyer can be forced to give the property back to the person whose name was forged. The forged deed can be made void – returning ownership to the original owner. Moreover, there are no systems in place at most county recorder’s offices – where deeds are recorded – to proceed against forged deeds.
Although relatively rare, one of the most devastating frauds for property owners is title fraud. This type of fraud starts with identity theft. The scammer will use false documents to pose as the property owner, registers forged documents transferring a property to his or her name, and then gets a new mortgage against the property. After securing a mortgage or line of credit, the criminal takes the cash and leaves the owner on the hook for future payments.
While an identity thief may get a forced discharge of an existing mortgage, it is generally held that fraudsters are more likely to go after homes that are free and clear of mortgages: these have fewer complications and they tend to be held by older people who may be less aware about how to guard against identity theft.
Sale of a fraudulently held property may also occur, but it is much rarer as potential buyers are unlikely to consider a purchase without inspecting a property.
Best Way to Protect Against a Forged Deed
The best way to protect against a forged deed and losing the entire house is to obtain title insurance. Title insurance is a type of insurance that the buyer can buy to make sure that they are getting clear title to the property. If a buyer obtains title insurance and someone comes out of the woodwork claiming they are the true owner of the property then the buyer can tender (give) the claim to their Insurance Company – the title Insurance Company – and have them either defend other claims to the property or pay the buyer the value of the purchase. This can be great protection for the buyer against real estate fraud.
“Title insurance” is the best protection against this type of fraud. As well as protecting against title fraud, it also guards a new owner from against existing liens against a property’s title (such as unpaid debts from utilities, mortgages and unpaid property taxes), encroachment issues (a structure on a property needs to be removed because it is on your neighbor’s property) and errors in surveys and public records.
The other key to prevent being a victim is to engage in protection of personal data. Taking precautions can also mitigate against more common types of identity theft –related losses (such as credit card fraud). As well as protecting their own information, investors and homeowners should ensure that trusted parties are taking proper security measures.