Autor: silmexico

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WHAT IS TURN-KEY REAL ESTATE?

Tuesday, August 8, 2023

By Jessica Hernández 

Real Estate advisor in SILMÉXICO

Maybe in your search for your new home or your next investment, you have found properties with the title “turn-key” on real estate websites, and you may not have a clear definition of it.


First, we will set its overall definition, most of the people in the industry mention that a turn-key property is one that is occupied or move-in ready, with appliances in working condition and no obvious structural or electrical issues. Although “turnkey” homes are not fixer-uppers, they may nonetheless require cosmetic upgrades or a refreshing.

    • What are the advantages of investing in turn-key properties? 

    • The benefits of turnkey properties are numerous, especially when you invest within emerging markets. These turnkey properties already reside in strong neighborhoods, so you immediately have a positive property investment in place. 

    • Another benefit of turnkey properties is the rental cash flow they create. And when you work with a real estate investment firm, they help you seek out tenants and show you how to successfully keep them long-term. You’re guaranteed a steady stream of cash flow, which is essential to keep your investment thriving. 
    • While rental income is one of the most common reasons to invest in turnkey properties, the ability to resell is what sets these investments apart. Sure, you can flip a home or build a condo complex for a quick payout, but with a rental property, you’re building equity, generating passive or semi-passive income, and you’ll still have the property to resell.
    • There should be minimal repairs or renovations needed on the property. 

In conclusion, generally speaking, turn-key properties don’t have to be “new” or “modern”, however, they have to be livable and ready to rent out upon purchasing. If they meet those requirements, they are considered turnkey. 

If you found yourself interested, find out about the wide range of real estate that we offer in SILMÉXICO and contact us through any of our different communication channels:

info@silmexico.com 

951-127-1380

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IMPACT AND SIGNIFICANCE OF A LETTER OF INTENT (LOI)

Monday, August 7, 2023

By Shannon Lam- Legal 

Assistant at SILMÉXICO

As part of our consultancy services, at SILMÉXICO we are constantly reviewing and signing documents with our clients. One of these documents that is common in our day-to-day is called a Letter of Intent. A letter of intent, or an LOI, is a formal letter that outlines an agreement between two parties in a commitment to do business together. Depending on the jurisdiction and the particular situation in which they are employed, letters of intent (LOIs) may be subject to different laws.

  1. Preliminary agreement: LOIs are a way for parties who want to engage in future commercial negotiations or transactions to establish a preliminary agreement. They serve as a starting point for subsequent negotiations and help to make sure that each party has a written comprehensive overview of the terms and conditions. The prospective agreement’s key provisions are described in a LOI. It might contain information about the nature of the task, the cost, the terms of payment, the deadlines, the deliverables, and other essential elements of the deal. An LOI helps prevent misunderstandings by outlining these key parameters up front and offers a basis for negotiation.
    1. Details of purchase and sale– location, price, deposit, etc. 
  2. Commitment: Signing a LOI demonstrates the parties’ commitment to and seriousness in pursuing a potential business transaction. It demonstrates a readiness to negotiate and take the deal forward, strengthening the relationship between the parties.
    1. Financial penalties
  3. Negotiation guide: LOIs serve as a guide for later discussions, directing the negotiation process. The parties can concentrate on the last-minute terms and conditions because they serve as a structured beginning point for conversations. This shortens the negotiation process and saves time by highlighting and resolving crucial concerns at the beginning.
  4. Obtaining funding/attracting investment: In some circumstances, Letters of intent (LOIs) can be used to get money or entice investment. An LOI, which outlines the proposed terms of investment and the anticipated benefits, could be presented to potential investors by a company seeking investment, for instance. This could spark attention and start other conversations.
  5. Due diligence: LOIs may include clauses allowing for a period of due diligence, during which the parties may obtain and assess data regarding one another’s enterprises. This makes it possible to evaluate the transaction’s viability, risks, and potential rewards in greater detail before moving through with a final agreement.
  6. Creating a timeline: LOIs frequently specify a deadline by which the parties want to reach a binding agreement. This timetable guarantees that negotiations go swiftly and fosters a sense of urgency. Additionally, it enables both parties to schedule their tasks and distribute their resources appropriately.

Confidentiality: LOIs may have clauses requiring confidentiality or exclusivity throughout the negotiation process. These clauses can safeguard confidential information and stop the parties from negotiating with multiple prospective partners at once, enabling more concentrated and private conversations.

Overall, LOIs are a convenient tool in business, helping to facilitate initial agreements, establishing the ground for discussion, and giving the transaction process structure and clarity. However, it’s imperative to realize that letters of intent are frequently non-binding and subject to further discussion and the signing of a formal contract. 


For this, and more information about real estate processes, please contact us through any of our communication channels: info@silmexico.com, 951-127-1380. Or visit us at any of our offices in the state of Oaxaca.

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THE IMPORTANCE OF SAFE PASSWORDS

Thursday, August 4, 2023

By IT Department

Your passwords are keepers of your accounts online. They protect your personal information such as your financial information from unauthorized access. But, if your passwords are insecure, these can be deciphered by hackers

Strong passwords are of paramount importance because they help protect your sensitive access information will not authorize. Hackers and cybercriminals use various methods to crack passwords weak. These methods include attacks by predetermined lists, attacks of brute force, and social engineering. With the advancement in technology, password formats have become more vulnerable.

A strong password is one that is easy to remember but hard to guess.

Here are some tips for creating a strong password:

  1. Use a combination of upper and lower case, numbers, and special characters. This increases the password complexity making it more difficult to guess.
  2. Your password must be at least 12 characters in length. My name, Francisco, has 9, the longer the password, the attacker will have more difficulty deciphering it.
  3. Avoid using personal information in your password. This includes your name, date of birth, or any information that can be easily “guessed”.
  4. Do not use the same password for different accounts. If an account password was compromised, all your accounts will be compromised.
  5. Change your passwords regularly. This will help you protect your accounts if a password was compromised.

Finally:

 

Take care of the information you share online. Do not share your passwords with anyone else person, even with people you trust. Be on the lookout for social engineering (phishing) scams. Phishing scams are those where you receive an email or go to a web page that tries to trick you into giving personal information, including your password.

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STEPS TO FOLLOW IN THE CONSTRUCTION OF A MEXICAN REAL ESTATE PROJECT

Wednesday, August 2, 2023

By Valeria Cadena Lopez 

Civil Engineer in SILMÉXICO 

Over time, society has tended to invest in real estate projects, because they are one of the most feasible and intelligent investments that offer us a good return, in addition to their increase in purchasing power. If you are interested in investing in real estate, our SILMÉXICO team can guide you on this path.

If you are searching for the acquisition of land, SILMÉXICO will be happy to accompany you, advise you, and offer you the best deals in the state of Oaxaca that suit your needs. 

Once the site is acquired, a construction plan is prepared, which consists of carrying out the analysis-diagnosis, where we list each of the needs and desires of the client, with the experience of our team of engineers and architects, it is possible to develop an executive comprehensive project. 

It is important to carry out a financial analysis to calculate the costs of acquiring materials, construction costs, payments of construction personnel, and indirect costs. To ensure its cost, we consider the percentage of inflation and contingencies, to maintain a budget close to reality to mitigate cost overruns.

We maintain a direct link with our suppliers, which allows us to offer our clients better prices for materials and construction supplies, reducing the cost of construction.

It must be considered, that before starting building your project, our team must obtain the pertinent construction permits and licenses from the corresponding area to be built.

Executive projects are carried out based on the client’s needs, then soil mechanics tests and topographic surveys, to make calculation reports and prepare structural plans to guarantee the safety of your real estate project.

When starting the construction, the preliminary works of the foundation and structure are executed according to the design and structural calculation. Our technical team of specialized labor supervised by the Civil Engineer, allows the correct construction processes in the construction of your project, abiding by the technical construction regulations in force in the State. 

In the end, the delivery of your project is made, with a detailed review where we make sure together with the client the correct functioning of each of the areas, facilities, and equipment, granting the guarantee of your project. 

At SILMÉXICO we have a group of professionals in civil engineering, architecture, accounting, and legal, to make your real estate project a reality. Contact us by phone: 951-127-1380 or visit any of our offices in the state of Oaxaca.

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THE IMPORTANCE OF THE NDA IN A NEGOTIATION AND ITS LEGAL CERTAINTY

Monday, July 31, 2023

By Juan Luis Santiago Medina 

Legal Assistant at SILMÉXICO

Currently, in the corporate world when exposing the idea of ​​working jointly with third parties outside your company, office, or business you tend to expose private or corporate information, however, at the time of any embezzlement within the business that you seek to celebrate, could significantly harm your environment.

But how to protect the personal and corporate data of your company, office, or business within a negotiation?

As legal advisors, within a legal business, we must consider that discretion and confidentiality play a very important role in the success of a business, and that is where those called by the corporate world “NDAs” intervene, which, for Its acronym in English, we will translate it by Confidentiality Agreements, but really, what do we understand by NDA or confidentiality agreement?

According to various legal sources, Confidentiality Agreements are those legal agreements by which the parties establish conditions of use, transfer, or exchange of information that they consider “Confidential” but essential to ensure the success of the negotiation, understood from something fundamental such as address, marital status to more sensitive issues, account statements, company partners, digital signatures, tax status, among others.

To delve into confidentiality agreements, we must understand that they may contain what the parties consider necessary to ensure the personal and corporate protection of their core.

Understanding the concept of the famous NDAs, what are the benefits of signing them?.

  • Certainly, a good business is one that is duly supported, speaking from a legal point of view, which are precisely the pros; 
  • Protection of the intellectual property of your brand, company, or business.
  • Certainty protects the confidentiality of your personal and corporate data.

Protection against embezzlement or bad faith by third parties who, for legal business reasons, have information in their possession.

 

In conclusion, we understand that NDAs are vital and practical tools to protect sensitive information and strengthen the negotiation between the parties so that in case there is any misuse of shared private information, you can always count on the support legal if you have already signed this instrument and you are duly advised.

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OAXACA IS A TOP CHOICE FOR FOREIGNERS LOOKING TO MAKE MEXICO THEIR HOME

July 28, 2023 

By Jessica Hernández

Customer Service

Every year is visible the increase in the number of foreigners who have decided to reside in the country. The most significant number of migrants that entered México in the last 5 years came from the United States, 381K people, and 8,858 people from Canada.

Mexico is already host to a strong contingent of foreign residents who live here full-time or part-time, and although the reasons they tend to cite for choosing to live in Mexico vary, common themes include a welcoming culture, agreeable climates, the delicious flavors and fresh produce, and affordable living costs.

Above all, foreigners are looking for a comfortable life, already retired from productive activities, and they find, in locations close to the Oaxacan capital in the city itself, and on the coast, a pleasant climate, a less expensive economy compared to that of their countries of origin, and a quiet life.

 

It’s not just retired who are seeking change: we’re receiving interest from people in their middle ages, and even some younger working-age people whose transferable skills enable them to exercise their talents in various areas of the ‘knowledge economy’—especially online working, or as they are known and named “digital nomads” 

 

Another attraction for people seeking an alternative lifestyle here is the lower cost of living in Oaxaca—which translates into things like more retirement savings for those still in their working-age, and more sustainable living standards for those on fixed incomes in retirement.

The state has countless landscapes that make foreigners fall in love with them and make the decision of living here. Likewise, retired like Oaxaca due to its nice weather, as most of them come from cold parts of the world, they prefer sunny and warm days in places such is the case of the Oaxacan coast. 

As foreigners come from big cities where the hustle and bustle, and smoke are their bread-and-butter, they prefer tranquil places where they can disconnect from stress and slow down from their usual pace of life. 

 

There is huge investment potential in Oaxaca state. Housing prices are low, while infrastructure, including the 420 Million USD highway and 26 Million USD airport expansion is well underway. This will help result in an appreciation in oceanfront and in the City’s properties in the area.

From its untouched beaches to its rugged coastline and mountainous landscapes with colonial buildings, Oaxaca is truly Mexico’s hidden gem.

If you found yourself interested, find out about the wide range of real estate that we offer in SILMÉXICO and contact us through any of our different communication channels:

info@silmexico.com 

951-127-1380

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BIOPHILIC ARCHITECTURE, NEW TREND IN REAL ESTATE DEVELOPMENTS IN OAXACA

July 26, 2023 

By Arq. Jorge Santiago

Architect at SILMÉXICO

This year is half over and architectural design continues to evolve, so SILMÉXICO tells you what is the design trend you can implement in your home that will help improve not only the aesthetics but also the comfort of the spaces, and we are talking about Biophilic architecture. 

It is a concept that has gained importance in architectural design because what this principle seeks is to connect humans with nature to improve their well-being. Every time, there are more projects that integrate and generate a dialogue with nature, making it the protagonist of the architectural work. 

The term “biophilic” comes from the greek word philia= love/ inclination, and it is translated as “love for living things”. 

Although it seems something very new, this term began to be used by the psychologist Erich Fromm in 1964 but it was not until the 80’s that it was popularized by the biologist Edward O. Wilson, since he detected how the urban sprawl disconnected every time more humans from nature, that is why currently the projects that seek to generate true comfort for the user are involved in biophilic design, this idea has been reinforced after the pandemic revealed that contact with nature in the different spaces that human beings inhabit is essential for their comfort and well-being.

In Mexico, it is very common for architectural projects to integrate nature as a regulating element, between spaces and to help the end user feel part of the environment, and generate a spatial but also an emotional connection with nature. Nowadays, with the exponential growth of cities in the country, this is gaining more and more strength due to the natural need for comfort and connection with nature. It is precisely in Oaxaca where developers have already taken this guideline seriously and have begun to implement it in new constructions, making it clear that the idea of having a home with all the comforts is not at odds with the idea that this be in harmony with nature and connect the users with it. A faithful example of this is “Las pozas”, with its large open spaces, with huge gardens and different endemic plants of Oaxaca.

 

At SILMÉXICO we are committed to generating comfort for the user and generating real estate projects in Oaxaca and Mexico with low environmental impact that do not affect the environment, but rather get involved by creating a connection with it that helps generate quality environments.

If you are interested in this type of housing, find out about the wide range of real estate that we offer in SILMÉXICO and contact us through any of our different communication channels:

info@silmexico.com 

951-127-1380

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ARE YOU ABOUT TO BUY A PROPERTY?

July 19, 2023 

By Lic. Jessica Hernández 

Customer Service

Whether it is to live, or for investment purposes, acquiring a property is a solemn transaction and must be considered by the parties involved as such. The buying-selling process can be very simple to the extent that both the buying and selling parties provide, on the one hand, the necessary documentation, and on the other, the economic resource. That is why, if you are close to acquiring any type of property, it is necessary that you check that the owner of the property has the following documents:

 
1. Current official identification of the owner(s)

2. Deeds in the name of the seller, in case the property is communal/ ejidal, there must be a certificate of possession

3. cadastral certificate

4. felling and demarcation

5. Freedom of lien

6. Current property tax receipt

7. Water and electricity bills

8. Marriage or divorce certificate, if applicable.

9. Plan of the land and subdivision (in case of being in a subdivision)

 

10. Updated tax status certificate

 

At SILMÉXICO we always make sure that when listing a property all the documentation is in order, in this way, we offer the certainty to all our clients that their purchase is safe and that their investment will be the best.

Do you have questions about this documentation? Come to our consultancy headquarters at Sabinos #711, Colonia Reforma, Oaxaca de Juárez, Oaxaca, and contact us at (+52)951-127-1380, or send us an email at info@silmexico.com. Our legal team will be happy to help you with your doubts and take the big step in acquiring your new property. 

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THE OVERVIEW OF CONSTRUCTION THIS 2023

July 19, 2023 

By Ing. Ricardo Cisneros Sánchez 

Project Manager at SILMÉXICO

Construction is one of the most important industries in the world, where human and variable capital moves 365 days a year. It is not surprising that this is constantly changing since it must respond to the social, cultural, environmental, and political needs that are taking place in the area where the construction will be implemented.

In 2023, construction in México has mainly focused on maximizing investor investment with proposals that respond to current environmental measures, reduce execution times, and that the final product meets higher quality standards in finishing and operation. This is why we group them into the following points:

 

  • Sustainable Construction: Sustainability is a major trend in the construction industry, and developers are looking for ways to build projects that are more environmentally friendly. This may include the use of recycled or 0-impact materials, the installation of renewable energy systems, separation of water for final disposal, accompanied by designs that are efficient in the use of energy. The implementation of materials such as earth, wood, and stone are increasingly gaining prominence in current constructions.

 

  • Modular Construction: Modular construction is a construction method that uses prefabricated components that are assembled on-site. This method can be faster and more efficient than traditional construction, and can also result in less waste, optimizing construction costs and maximizing work crew performance. From SIP panels and prefabricated structural elements such as the joist and alveolar plate to the use of 3D printing, they allow a dry, affordable construction with guaranteed quality.

 

  • Smart Building: Smart building uses technology to improve the efficiency and comfort of the end-user of buildings. This may include the use of automation systems, sensors, and networks to control climate, lighting, and other systems. Since the pandemic, this niche has grown considerably and has become a necessity in terms of the comforts it can offer the end user.

CONCLUSION

It is important to be updated with the needs of the market and the demand for products that cities demand today since this allows cutting-edge projects to be carried out that ensure profitability in the short and medium term. Today, a sustainable building can help reduce maintenance costs, improve air and water quality, and create a positive image for the company. Implementing modular elements can help speed up construction time, reduce running costs, and create less waste. If we combine this with elements that improve the efficiency and comfort of the end users, we will obtain greater satisfaction both from our end client and from the investors of the project, reflecting higher incomes and immediate capital gains.

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MEXICAN CORPORATIONS AND THEIR USE IN REAL ESTATE TRANSACTIONS

Monday, July 17, 2023

By Jessica Hernández

As explained in a previous article, different mechanisms can be used to acquire properties in México. One of them is the creation of a Mexican corporation, which is the matter of this article. 

A Mexican corporation: as of 1995, foreigners can own, operate and manage Mexican companies, however, some restrictions remain on the activities in which a Mexican company can participate when foreigners are involved, such as mining, airports, and telecommunications; however, the general rule is 100% participation. No investment restrictions exist on foreign-owned companies that purchase and develop the property. Mexican corporations require a minimum of two associates or shareholders. Both shareholders can be foreigners, and having a Mexican partner is unnecessary.  

There are several different types of Mexican corporations, however, the two most common are the S.A. de C.V. and the S. de R.L. de C.V. The S.A. de C.V. is a stock corporation, and S. de R.L. de C.V. resembles a limited liability company. Choosing the type of corporation to establish is essential for tax purposes in both the US and Mexico.

Once your Mexican company is formed, you can acquire property anywhere in Mexico, including the restricted zone. Property acquisition is also a “formal” procedure, and you must ensure that all the proper steps are accomplished to secure the title, that is why this process should be carried out with professionals in the area. 

If you are about to acquire a property in Mexican lands, visit us at https://silmexico.com/mexican-corporation-constitution/ to know more about this and other services SILMÉXICO offers and become a Mexican property owner.