Timothy Real Estate Group | Vallarta Mexico


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Selling Our Business In Puerto Vallarta

About two years ago my husband and I made the difficult decision to sell our ATV/Scooter Rental & Tour business and head back to Europe to attend to aging family members.  Moving out of beautiful Puerto Vallarta was a hard choice to make, but it was something we needed to do given the circumstances. My …

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How to Save Your House Flips When They Don’t Sell

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One of the biggest worries of new house flippers is what happens when they can’t sell their flips.

It’s a legitimate fear…but one you don’t need to have if you just take a few precautionary steps with your lenders ahead of time.

To do this though, it largely depends what KIND of loan you have on the house.

Here are two scenarios that you may come face to face with and how to deal with them.

1. Private Lender Lenders

When you’re working with a private money lender – this could be a family member, a friend or a business acquaintance, you’re the one who’s setting the terms.

So when you write that promissory note, you’re going to personally guarantee the loan. I do this on all my note holders; I personally guarantee them, depending on the situation.

If it’s an equity deal, then it’s a little different – but on a pure note we usually personally promise them. It’s really important to me to make sure my lenders are well protected.

I do this because I don’t want to be in a position where I can’t pay off that note only because it went beyond the 12 months. So what we typically add in a stipulation our promissory note that includes a “when the property sells” provision.

The idea is not to make you lazy or give you a false sense of security, but to protect you in case hings go wrong.

Never forget that in house flipping, time is money and you never want to be in a property longer than six months.

This provision just gives you a little extra layer of protection to know that you’re not going to be foreclosed on hard by your lender.

2. Hard Money Lenders

If you’re in a deal with a hard money lender, then the rules are completely different…so this section is a bit more lengthy.

When you borrow hard money, the hard money lender creates the rules, they’re professional lenders just like bank and most of them really know their stuff.

Some house flippers, eager to get their first deal funded with a hard money lender, get too aggressive and set their terms for six months.

Big mistake…

Never, ever, ever get into a six-month loan with a hard money lender. I don’t recommend them…its just not enough time, especially when you’re first starting out flipping.

Its completely plausible that you could buy a property and it could take you 60-plus days just to rehab it. Not that you want to take that long on a rehab, but it can happen.

If the rehab takes 60 days, thats two full months into it and only after that, you can list it and start the selling process.

But lets say its towards the end of the year and it took a couple of months for the selling season to come. Or perhaps you could sell …read more

Publicación del Evento de Bienes Raíces 2014

La Feria de Bienes Raíces Vallarta 2014 se llevó a cabo el sábado, 15 de febrero en la plaza Rivera Molino. El evento de un día duplicó el número de visitantes que asistieron el año anterior e incluyó participantes de Marina Vallarta, Mismaloya, La Cruz de Huanacaxtle y también a los agentes de bienes raíces …

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Vallarta: Check Out the New Woolworth in Pitillal!

Check Out the New Woolworth in Pitillal! A new Woolworth Store has opened in Pitillal and has everyone excited about bargain shopping at their favorite store that has a little bit of everything.  For serious shoppers, parking in the downtown area can be an issue. Unless you’re going to hop on a bus, which we …

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Puerto Vallarta’s Fabulous Weather

The change of seasons is upon us. Fall is in the air and soon weather temperatures will drop and cold weather will arrive. More and more Americans and Canadians are spending their winters in Puerto Vallarta Mexico, as it is an ideal “snowbird” destination. Puerto Vallarta is a friendly place to live and it has …

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PROPERTY OF THE WEEK: Beautiful & Charming House Without Breaking The Bank!

  Property Name: Casa Argentina Description: Great house with vaulted ceilings located in the quiet residential neighborhood of Buenos Aires, just few minutes from downtown Puerto Vallarta & two blocks from the Rio Cuale. The living area and adjacent large entertainment kitchen opens up to the romantic and tropical landscaping backyard. Built in 2006, Casa …

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‘House Hunters International’ Charity Auction and Raffle

‘House Hunters International’ Charity Auction and Raffle One of the most incredible things about being involved with the House Hunters International Charity event is the chance to see the wonderful giving spirit of the Puerto Vallarta community come together for some wonderful and needy causes. This year has been another wonderful chance to work with …

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How to Use Real Estate to Retire Better Than Your Neighbor…

Using REI to help with retirement

There’s an almost universal misperception that the every day American family simply can’t arrive at retirement with more money than they ever made on the job. I’m here to tell you that is a fallacy, at least in my experience. Don’t get me wrong, the lower the income the longer it takes and the lower the ultimate income in retirement. Still, though most folks give impressive lip service to what can be done with solid self discipline, a solid plan, a real purpose, and the flexibility to adjust when necessary, they generally aren’t walkin’ their talk. In other words, they don’t really believe what they want to believe.

Let me sprint to the bottom line here. If you have long enough, and you have enough capital, which doesn’t hafta get within shoutin’ distance of being impressive, you can indeed retire with more after tax income than you made in your best year on the job.

Jim is a young (30) engineer makin’ roughly $60,000. His wife, Melisa, (29) is in retail sales, makin’ roughly $35,000. They don’t have kids yet, but that’s likely to change in the very near future. They don’t live super cheaply, but are relatively wise with their money, saving while still enjoying life. Let’s lay out a short outline of what’s possible for ‘em. We’ll assume they retire sometime in their 60s, 30-35 years from now.

A Broad Brush Look at What’s Possible

An EIUL policy with an inflation based monthly premium of about $500 will, in 30 years produce a tax free income of roughly $4,000. That’s a rough estimate, but done by a pro in the industry. Then there’s Melisa’s income, which doesn’t come with a company sponsored 401k plan. She and Jim decide to start Roth IRAs, one for each of ‘em. Jim long ago eschewed any participation in his employer’s 401k plan. In fact, years ago while still in college, he followed my advice to gut his small 401k with the big box store employing him, and paid off all his outstanding debt.

Now, before too many years go by they’ve accumulated enough to each buy one modest discounted note, secured by real estate. We’ll say this began when Jim was about 35 or so. By the time they’re both 60 they’ll have grown their note portfolios to the point of a combined potential tax free monthly income exceeding $10,000. For you Doubting Thomas types out there, they’d get about half that much if they NEVER bought a note for 30 years, just each contributed the annual allowed amount each year for that long, THEN bought notes. However, doin’ it for 30 years or more, allowing the payments to build up, reinvesting them too, plus reinvesting paid off notes, adds up hugely over what would then have been approximately half their lifetimes.

So far, Jim and Melisa have arranged to generate somewhere around $150,000 a year at retirement, all of which is defined by the Internal Revenue Code as TAX FREE. Even if we’re gonna be cartoonish about …read more

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