Dear Friends:

I thought I should stop being so lazy and take the neccesary time to contact you. I attended a seminar monday held by my Company Snell Real Estate in association with A.M.P.I of Los Cabos, which stands for Asociacion Mexicana de Profesionales Inmobiliarios, A.C.. and refers to a code of ethics to adhere to. The forum was made up of Mark Raven ,a realtor who represents many international companies investing in commercial and industrial projects throughout Mexico. He was able to share with us some of the hurdles that had to be overcome to satisfy lenders when seeking financing. Isabelle Miguel Tapia elaborated on the legal implications of doing business across the border in Mexico. Bruce Greenburg an appraiser has been working in Mexico for many years and shared the requirements the lenders will demand and helped prepare us for the future. Bruce has been promoting the neccesity of building a data base of sales, which appraisers could use to justify value to the banks who in turn would lend against Mexican property. It was interesting to see the reluctance of the local salespeople as well as skepticism.

The old dogs don't seem receptive to learning new tricks. The financing of resort properties will add significant momentum to our already active market. The bankers felt that they would be lending somewhere between 500 million and 1 billion dollars annually. Peter Stirling of GS Mortgage Corporation indicated his bank had access to unlimited funds for qualified buyers. This opens up the market of refinancing as well. Most properties to now in Los Cabos were purchased cash and freeing up equity to invest will be very attractive. I welcome the evolution of financing to the area and am aware that many visitors will now qualify to purchase real estate here. The largest hurdle the lenders appear to have is the lack of a standard purchase agreement being used here. This was a discussion at the MLS meeting held this morning. These lenders will demand structure and that means additional education on behalf of the sales agents and brokers working here. It also represents progress and increased consumer confidence by the buying public who have grown accustom to the complex world of finance. It will mean the shaking of the tree, so to speak regarding the dinosaurs that refuse to grow. In an ever evolving industry we must as agents evolve as well or become ineffective. Financing here will represent much opportunity for those who understand the strength of leveraging. I can not predict the end result but feel that the demand for an agent with specific education of the area and methods of doing business will excel. I welcome the challenge and look forward to helping make you dream a reality in truly a heavenly place.

Randy Thompson
Sales Associate