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Inpats or Expats in Puerto Vallarta, Which Are You?

A new expression is making the rounds, including in Puerto Vallarta, describing people who choose to live in countries other than those where they were raised, educated and perhaps formerly employed. Inpat. Expat doesn’t always have a ...

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Purchasing A Business In Puerto Vallarta

For quite some time, my partner and I had been looking at purchase a business together that would fit our personalities and lifestyle.  While living in Vancouver BC and after examining several options, we came across Estigo Scooters, an ATV/...

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Great Problem Solvers who Went the Extra Mile

When I was looking for a real estate agency to sell my condo, I saw the amazing properties listed on Carl Timothy's site at:  Although I felt my place was great, I wasn't sure if it measured up to Carl Tim...

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Puerto Vallarta: Is The ‘Mordida’ A Good Idea?

The Mordida For anyone who asks, if ever pulled over by an officer of the law in Puerto Vallarta, we always advise to keep your money in your pocket and take the ticket. There are still come cops who will accept a bribe (mordida), though we ...

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Puerto Vallarta: Taking A Panga To Yelapa!

Take a Panga to Yelapa! There are people who ask if Mexico is safe. It’s a question that actually upsets a lot of locals and residents here in this relatively peaceful country. Yes, there are problems, just as there are in our extremely di...

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Puerto Vallarta: Sports, Pro or Amateur?

Calling Pros and Amateurs! Puerto Vallarta has long had a history of sports, with enthusiasts for baseball, soccer, tennis, and other activities dating back several decades. These traditions are honored when Puerto Vallarta hosts events, whi...

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And So Begins Low Season In Puerto Vallarta

Low Season in Puerto Vallarta Begins High season is officially over as of Easter Sunday April 1st, but that doesn’t mean things slow down in Puerto Vallarta. Pride week rolls out for the first big event of spring and in Puerto Vallarta, it...

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Who Should Retire in Puerto Vallarta Mexico?

Puerto Vallarta is a well-known retirement and vacation destination and anyone who has ever been here knows why. The cost of living is low but the quality of life is high. There is always a fun activity going on or an event to attend or a place...

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

Post image for How to Save Your House Flips When They Don't Sell

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

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The Perfect Sunset? In Vallarta Of Course

Winter in Puerto Vallarta brings incredible sunsets and we cannot deny it is one of our favorite pastimes to settle into a plastic chair on the beach, with a cold beverage to sip and watch the great ball of fire sink into the sea. People ga...

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What To Know About Your Local ATM

ATM’s and How to Use Them This question arises again and again about how to get cash in Puerto Vallarta, and we do periodic updates to keep people in the know. The best way to get cash is through an ATM. The peso will fluctuate throughout ...

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Puerto Vallarta Loves Equipales

Our favorite thing about equipales is the way they smell. The odors of leather and rosewood linger for years and are usually so strong at the point of purchase; we usually allow them to air out on the patio for a day or two, especially the ...

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When The Termites Come to Vallarta

The first time we witnessed the arrival of The Termites in Puerto Vallarta was at a beach restaurant many years ago. Without as much as a buzz or a hum, a swarm of flying creatures suddenly appeared over our heads, shedding somewhat less than g...

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Donna Davies: Pursuing Your Dream

I dreamed of living in Mexico since I was 17 years old.  My friends knew this about me but they all thought I was crazy and that it would never happen.   Each time I visited Mexico I felt a certain connection, something pulling me h...

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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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We Received Extensive and Invaluable Guidance

A friend recently told us that if you’re considering purchasing property, the most important thing you can do is enlist the services of a top realtor. This is especially true in Mexico where a myriad of regulations, laws and sometimes ant...

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Yes, Vallarta Is Growing

Puerto Vallarta has long been a bustling, active town. It didn’t start with the Hollywood invasion, though the way some people talk, Vallarta was nothing but a sleepy fishing village before the event of movie-making. Las Peñas, as Puerto Va...

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Lead By Example in Puerto Vallarta

Basura (garbage) is a steady problem in the tropics and Puerto Vallarta is no exception. We all need to do our part to help and when we do, it makes life far more pleasant for everyone involved. There are no exceptions, considering that from bi...

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