Invest In Los Cabos

What is the concept of each of the developments?
Playa Agave Azul is a destination resort with a theme. Encompasing fifty acres on the Pacific Coast side of Los Cabos, Mexico, Playa Agave Azul (also referred to as Tequila Ranch, although officially you are prohibited from using the term Tequila unless it is produced in Jalisco, Mexico) is the vision of one of Cabo San Lucas’ premier developers. A small community resort consisting of approximately 66 homes spread across 50 acres on the Pacific Ocean, the development features a fully functional Tequila Distillery that is built in likeness to Jose Cuervo’s distilleries of old.

The architecture of the development is old Mexican Hacienda style with high end modern amenities. Two blocks off the oceanfront lies 7.241 acres of land on which 15 villas are being built within the community of Playa Agave Azul Estates. The villas will be 4 bedroom, 4000 square feet, each having a view of the ocean. Playa Agave Azul Estates will be sold as one month fractional ownership. Stay tuned for information regarding retail sales. Coming Soon!!!

Cerritos Beach is a destination resort area for those who want to escape the hustle and bustle of downtown Cabo. Located on the pristine and famous Los Cerritos beach, this 68 unit condo project is right on the beach and features a 150 meter infinity pool overlooking the Pacific Ocean. Come and stay a week or a lifetime.
With access to the Cerritos Beach club being constructed on Cerritos Beach, our condo project perfectly located. Close enough for a short stroll to the action on the beach, but far enough from it to provide tranquility and beauty.

How many properties will be available for sale?
There will be 15 villas in Playa Agave Azul Estates. We will sell one month fractional ownership to the Villas, sold as contiguous months. Eleven one month fractionals will be sold in each Villa, resulting in a total of 165 one month fractions ownerships sold.

On Cerritos Beach there will be a total 68 units sold in three phases with the following configuration:

When will the properties be available for sale?
Currently we are selling preconstruction one month fractional ownerships at Playa Agave Azul Estates and condos on Cerritos Beach exclusively to Live Out Loud community members. We expect to break ground in December 06 on Tequila Ranch and early spring 07 on Cerritos Beach. Retail sales will begin on Spring 2007 for both projects. Contact Janet at Breakaway Enterprises LLC for availability.

What facilities will be available at Playa Agave Azul Estates and Cerritos Beach Condos?
The resort will offer the following amenities:

How large is each development?
The site at Playa Agave Azul Estates is 7.241 acres. It is situated within the 50 acre Playa Agave Azul development.
The site at Cerritos Beach is 6.6 acres. We will build approximately 68 units.

What are the advantages of buying at pre-construction prices?
Prices will rise over time. By purchasing early, you are guaranteeing the Fraction or condo unit of your choice at today's price and you will be able to see the value of your investment rise.

How does the cost of buying in Mexico compare to the cost of buying in the US?
Purchasing in Mexico has some very significant advantages. The cost of labor is much less expensive than here in the states so construction costs are less. The cost of services is also significantly less that in the US. The construction of the 4 lane highway from Cabo San Lucas to La Paz almost ensures our property values will skyrocket when the road is complete in two – three years. As the real estate market in the US continues to slow and/or stall, real estate in the Los Cabos area of Mexico continues to be exceptionally strong. That along with an estimated 100,000 baby boomers retiring in Mexico each year almost ensures our property values will rise.

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Will there be an owners' association?
At Playa Agave Azul Estates and Cerritos Beach we will have a management company responsible for providing a stellar level of service for their fractional or condo owners. We are still in negotiation with a number of firms interested.

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Can I rent my unit?
Certainly. it will be up to the owner of the unit to decide if renting is preferable and most owners do rent their units during periods of absence. There will be a professional management company available to manage the rental during periods of absence on behalf of the owner as an option. We caution potential buyers not to rely on rental income to determine the potential income or return on investment.

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Can I own real estate in Mexico?
As foreigners, coastal properties have been off limits until 1974. At that time, the Mexican government made it possible for foreigners to own property in Mexico. They accomplished this with the "Fideicomiso". A Fideicomiso gives you the right to a 50-year title perpetually RENEWABLE BY LAW!

"Fideicomiso", or bank trust, is defined for real estate purposes as transaction entered into between a Mexican bank and foreign individual or firm investing in areas otherwise restricted to foreign investment, with the bank serving as trustee or legal owner with respect to a certain real property interest and the investor serving as the legal beneficiary of the trust. The bank holds title to the property in trust for the beneficiary who retains the exclusive right to the use and control of the property.

As trustee, the bank acts on behalf of the beneficiary in transactions involving the property held in trust. However, the beneficiary controls and makes investment decision regarding the property, including the decision to transfer, assign or otherwise dispose of this or her interest in the property.

The trust is essentially a contractual arrangement which, in most respects, is identical to the type of trust commonly used in the United States . Trusts are established for initial 50 year periods and can be renewed indefinitely.

There are actually two ways a foreigner can own land near the coast in Mexico. One option is a 50 year automatically renewable bank trust called a Fedeicomiso as dicussed above.. A fedeicomiso is secured by international known title companies, we use Stewart Title Insurance Company.

The other way to own land is through formation of a Mexican Corporation that holds title to the land. You must be doing business in Mexico in order to form a Mexican Corporation. In the scenario, title is fee simple title held by the Mexican Corporation. We have formed two Mexican Corporations, one for Playa Agave Azul Estates and one for Cerritos Beach. These corporations will hold title to the land for our projects.

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What is the ownership situation for foreigners in Mexico?
Ownership of property in Playa Agave Azul Estates or Cerritos Beach is deeded. Title insurance is available through one of the world's largest and most prestigious insurers – Stewart Title Insurance Company.

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What is the weather like in the area?
Average annual rainfall: 10 inches - Coldest months: December and January
Storm season: July to October - Average water temperature: 72º F.
Average air temperatures: 50 to 80º F. winter; 70 to 100º F. summer.
The Pacific Ocean side of Los Cabos is generally 10º F. cooler than the Sea of Cortés.

The average year-round temperature is 78F. During the high tourist season, October to April, the temperature is typically 80F during the day and cools to the 60's at night. In the low season, May to September, the temperature will go up to 100+F during the day and stay in the upper 70's and low 80's in the evening. The average year-round water temperature in the Sea of Cortez is 72F. During the summer months the water temperature can reach the mid 80's. The climate is arid with over 300 days of sunshine, with some reports of over 350 days. Average annual rainfall is 10 inches (25.4cm), most with occurring during the months of September and October.

There are two ways a foreigner can own land near the coast in Mexico. One option is a 50 year automatically renewable bank trust called a Fedeicomiso. A fedeicomiso is secured by international known title companies, we use Stewart Title Insurance Company.

The other way to own land is through formation of a Mexican Corporation that holds title to the land. You must be doing business in Mexico in order to form a Mexican Corporation. In the scenario, title is fee simple title held by the Mexican Corporation. We have formed two Mexican Corporations, one for Playa Agave Azul Estates and one for Cerritos Beach. These corporations will hold title to the land for our projects.