Real estate advances lure foreign investors

Wire services
El Universal
Martes 27 de marzo de 2007

Experts say that the process of buying property in Mexico has changed substantially in recent years. For instance, title insurance and the wide availability of mortgages have added a new level of security, and has led to an increase in the number of foreign buyers.

Still, buying in Mexico remains a complicated and sometimes frustrating process for the uninitiated.

Stewart Title, which began offering title insurance in Mexico in 1993, has had its Mexico business triple in the past three years, said Mitch Creekmore, a senior vice president at Stewart International and co-author with Tom Kelly of "Cashing In on a Second Home in Mexico." "You have to do your own due diligence,"Creekmore said.

Longtime participants in the real estate business cite these common obstacles:

-There are restrictions on foreign ownership of land within 50 kilometers, or 31 miles, of the coast and 100 kilometers of the border.

- In most cases, any residential buyer who is not a Mexican citizen must place the property in a Mexican bank trust, or fideicomiso, which is controlled by the buyer and easily renewed after 50 years.

-The national real estate association, Asociacion Mexicana de Profesionales Inmobiliarios, recently signed an agreement with the National Association of Realtors in the United States that allows its members to use the Realtor designation. But there still is little oversight.

"You have to have a reputable broker, period,"said J.P. Money, who runs www.mls4rivieramaya.com, a property listing service. "Ask for references, and ask people who have bought from them before."

-Although the practice is technically illegal, it is not unusual for a seller to record a much lower purchase price to avoid taxes and then an unsuspecting buyer, trying to resell the property, is called upon to pay tax on the recorded increase in value.

"Buyers need to be sure the full price is recorded on the deed,"said Linda Neil, founder of the Settlement Company, a transaction consultancy based in La Paz, Mexico.

-Some buyers are shocked to find that closing costs can be as much as 10 percent of a property´s value. Fees for condominium associations and maintenance also may add to a transaction´s overall expense.

-Tracking a property´s title can be difficult. Large tracts often are controlled by ejidos - collectives of landowners - and in some cases sellers do not have full title to the land.

"Probably the biggest land mine is distinguishing the difference between private property and ejido land,"Neil said. "If title insurance won´t cover the title, that´s a big red flag."

Advice for the small foreign investment in Mexico

You can skip if you don't want to do business in Mexico.

THE RULES

-AVOID LAWYERS

-DO YOUR OWN HOMEWORK

-UTILIZE GOVERNMENT AGENCIES FOR FOREIGN INVESTMENT

Lawyers in Mexico, as in the United States, should be avoided; however, at times they can be a very "necessary evil" - as the saying goes.

My work as a consultant at a Mexican law firm and my experience as a foreign investor in Mexico, over the past fifteen years, has taught me that in order to succeed you must educate yourself regarding the rules of the game; of course, this is true of investing in any country. The U.S. businessman at home understands enough about his country's civil laws and tax code to intelligently manage a legal or fiscal professional. The foreign client is vulnerable to professionals overcomplicating their matter, overcharging for services or shortcutting the legal process. The client often ends up paying government fines for non compliance and repays someone to do the work correctly.

Education is the operative word for neophyte foreign investors. There are over 500 seminars annually on Mexican investment that are scheduled throughout the Americas. Choose one that includes a comprehensive discussion of the following: foreign investment as it pertains to establishing a foreign owned business, tax laws and international tax reporting agreements between the U.S. and Mexico; how to use bank trusts for acquiring coastal and border property as a foreigner, and how to purchase property as a foreign owned Mexican corporation. Avoid a one day crash course on investing in Mexico.

The comprehensive conferences I have organized in Baja California always require two to three days to cover the subjects properly. Handouts should include a copy of Mexican foreign investment law in english and an outline of tax obligations in Mexico for foreigners. The U.S.-Mexico Chamber of Commerce is a good organization to check with, in addition to their own seminars and trade shows, they can advise you on the quality of other workshops.


Ron Sharpe is a furnishings factory owner in Rosarito, Baja California who speaks very little Spanish and has never used a lawyer either to establish his successful business or in the running of same. What Ron has is patience and dogged determination. He tirelessly goes to Mexican authorities for assistance. He finds that his lack of Spanish and desire to do things himself strikes a responsive chord and produces an extra effort on the part of bureaucrats to help him. Ron is unique in this regard. Speaking Spanish, in most instances, is imperative for successfully running a business in Mexico. Entrepreneurs, who do not speak Spanish can choose a total immersion program from one of the hundreds of fine foreign language schools throughout Mexico. My clients have typically become fluent within six weeks of training.

Exploiting governmental resources

If you are a U.S. citizen the first agency to contact would be the department of trade in your state. Somebody in the state commerce or economic development department has the responsibility for advising you on commerce with Mexico. The Small Business Administration has computerized training programs on international trade and, in the Western United States, have folks who are knowledgeable about trade between the U.S. and Mexico. These agencies are a good resource for identifying educational opportunities close to your home and typically have someone they work with on the Mexican side of the border to refer to as well.

Another important resource, already mentioned, is the U.S./MEXICO Chamber of Commerce with offices in most major cities throughout the U.S.. In Mexico BANCOMEXT is the trade bank with offices in the major cities, i.e., Tijuana. They are are staffed with english speaking investment counselors and provide a library with directories to help foreign investors find suppliers and or joint venture partner candidates in specific industrial sectors. Bancomext also provides guidance in seeking loans for international trade ventures.

Most small investors who seek my help are usually not investing out of a singular desire to do business. They are mostly motivated by a love of Baja where they have spent great vacations and want to spend more or all of their time here. My advice is to proceed slowly. Try living for a while in the area you have selected for your future Mexican home and spend some time talking to Mexican officials at the state and municipal levels to determine their attitude toward foreign investors. Also, seek out foreign and native entrepreneurs in the area to test out your business ideas and seek their advice on market feasibility and potential problems.

Living and doing business in Mexico area, over an extended period of time, is always quite different than vacationing there. You may discover the area is too remote and lacking in services to fill your long term needs either business or personal.

I am more than happy about my decision to move to Ensenada, where my first investment was a vacation home. I soon realized when my "getaway" became my primary home that my beach property, with no nearby business services, was too remote a location. I also learned that it was great living there on holidays but not on a permanent basis - (too quiet for this Oakland homeboy), so I ended up renting an apartment in town.

Being close to international business resources is important when doing due diligence. For prospective foreign investors the following resources are available in Mexico: State Economic Development and Tourism, Department of Foreign Investment (if considering a tourism related business), bankers and of course lawyers and accountants recommended by foreign entrepreneurs and government officials. Other agencies to solicit counsel from are Mexican chambers of commerce: CANACO, for retailers; CANACINTRA, industrialists; COTUCO, tourism; and an Association called COPARMEX, a small business organization to assist small to medium sized businesses in Mexico. COPARMEX can help with legal, accounting, and bilingual personnel selection and training. All of these agencies have offices in major Mexican cities.

TAKE YOUR TIME, DO YOUR HOMEWORK AND SELECT PROFESSIONALS CAREFULLY and like any business anywhere - LOTS OF LUCK!

Healing sanctuary does good works in Mexican village

Mar de Jade offers foreign visitors a unique space to rejuvenate and relax -- and to perform service

Nick Gallo, For Vancouver Sun;
West News Service
Published: Saturday, January 28, 2006
Article tools

Fluent in English and Spanish, she's besieged with entreaties in both languages. A California guest wants to discuss a videotaping project. A Mexican mask maker appears, hoping to sell crafts. Then a barefoot villager approaches, needing help for an infection. "Tetracyclina," says del Valle, rushing off to find antibiotics. Finally, my curiosity piqued, I join the line of beseechers: "So, Laura," I ask, "what's your story?"

Thus, del Valle launches into her experiences at Chacala. A family physician who grew up in Chicago and Mexico City, she was travelling on vacation in the early '80s when she discovered Chacala, then an isolated settlement of fishermen who lived on ejido, or communal, land. A one-acre plot was for sale, which Del Valle snapped up.

Eager to practise community medicine, she used a blend of western medicine and wholistic methods to treat villagers out of a palapa shack. Local farmers believed she possessed the powers of a curandera, a healer who can cast spells. Del Valle didn't dissuade them, approving of traditional healing rituals, such as boiling herbs by the light of the moon.

In the early '90s, del Valle began to modernize Mar de Jade, putting in a well, electricity and the first modern guesthouse. Additions followed every few years. A lifelong Zen Buddhist, del Valle built a meditation hall in 1994 and found Zen teachers such as Norman Fischer of the San Francisco Zen Center to conduct group retreats.

Passionate and visionary, del Valle was creating something new in the wilderness: a combination vacation spot, spiritual retreat and community-immersion experience. Soon, alternative-minded travellers were arriving for yoga workshops and human-potential sessions.

Guests volunteered at the health clinic, founded a library in the village and pioneered Techos de Mexico, a program that helps villagers generate income by renting out rooms to tourists. "We've had a lot of really good-hearted people stay here -- people who want to make a difference," says del Valle.

Today, many travellers continue along that path, but things are evolving.

"We've always tried to strike a balance between learning and serving with relaxing and enjoying," del Valle says, breaking into a smile: "Self-renewal takes different forms."

The next morning, I awake clear-headed and fever-free, ready to rejoin the human race.
IF YOU GO:

- Travel: The closest international airport to Chacala is in Puerto Vallarta. Rental cars are available for the 90-minute drive north. Taxis cost $80 for up to four people. Northbound buses ($7) leave the Puerto Vallarta bus station, about a kilometre north of the airport, and stop at Las Varas. Grab a taxi ($10) in Las Varas for the 15-minute ride to Chacala.

- Accommodation: Mar de Jade offers spacious suites and guest rooms that start at $200/night US for two people, which includes three meals per day per person. Contact www.mardejade.com; toll-free, 1-800-257-0532. Inexpensive bungalows for rent through Techos de Mexico (www.playachacala.com).

- Retreat: The Praxis Spiritual Centre of B.C. will hold a Meditation and Creative Spirit retreat at Mar de Jade Feb. 25 to March 1. Participants will learn a simple, integrated daily meditation practice and participate in creative arts activities. Tuition is $650 US. Seven nights accommodation and three meals/day cost $700 US. Phone 1-250-860-5686, e-mail infopraxiscentre.ca or visit www.praxiscentre.ca.

FOLLOW THE READER: Mexican resort: Good time and good works

Sunday, March 26, 2006

My wife and I had a wonderful vacation on the Pacific Coast of Mexico. The resort of Mar de Jade is on Playa Chacala, about 1 1/2 hours north of Puerto Vallarta, on the edge of a jungle that has overgrown the volcanic landscape. We read about it in Moon Handbooks' Pacific Mexico book.

The resort has a beautiful ocean beach, swimming pool, hammocks, lovely rooms, healthy food, interesting guests, helpful management, optional daily excursions, Spanish lessons, yoga or just relaxing, all at a reasonable cost. The resort welcomes groups that have a common interest, such as yoga or singing or meditation.

Mar de Jade is owned by Laura del Valle, a Mexican doctor who established a rural health clinic with the aid of the income generated by the resort. She also runs a free after-school program for children who get a meal and care through the afternoon hours. She plans to generate work for local woman in this small community, which has no luxury hotels, restaurants, boutiques or crowds. She also offers a unique way of celebrating birthdays that you will have to find out about on your own, but that I experienced.

Del Valle is looking for volunteer help at both the clinic and the resort, and offers a discount for a few hours of work a day. Whether you just relax like we did or actually volunteer, you salve your social conscience and contribute to the welfare of the region. It's much better than a tax deduction.

Doubles start at $200 per night plus 10 percent room tax, including accommodations for two and three buffet-style meals per day.

Contact: PMB 078-344, 827 Union Pacific, Laredo, TX 78045-9452. (800) 257-0532, http://www.mardejade.com/.

Chacala: A hidden paradise on the Pacific coast

By: Nicolás Treido

The south coast of Nayarit is covered with points, bays and inlets with some outstanding rugged slopes. The sierra is close to the shoreline and it sometimes seems to be tossed in the waves.

Chacala is one of the most beautiful beaches along this coast and unlike many of the others, it does not have a mosquito problem.

There are several almost virgin beaches on the Pacific coast of Nayarit that are possible to access almost all year round, however, some are quite difficult to get to during the rainy season.
Chacala beach is surrounded by palm trees, and as one goes deeper into the jungle there are mahogany, parote, rosamorada and other exotic trees, as well as mango and banana orchards.
As you walk through the jungle, you can see the occasional beaver, armadillo, puma, ocelot and rattlesnake, as well as innumerable species of tropical birds.

Chacalilla beach is less than 1 km from Chacala beach; this is the perfect place for swimming, snorkeling and kayaking.

But apart from Chacala’s natural attributes, the most important offering it has is its people. They are hardworking, enterprising and have a pioneer spirit. A good example is Doctor Laura Del Valle who arrived here some twenty years ago. Today, she is the manager of Mar de Jade, a small inn, whose main house facing the sea is built in the Mediterranean style. The good doctor tells us that the place was built in the spirit of social labor and as a sign of gratitude for the natural surroundings.

“Mar de Jade is a unique experience for those who want to live simply in a beautiful tropical paradise”.

She adds: “The funds it generates and the donations given by some of the visitors allowed us to open a clinic in Las Varas, in a building donated by the Municipality.” Another interesting point is that all houses in Chacala are built with an extra bedroom for receiving visitors. Mr. Del Valle, who came up with this idea, says: “This project is not only to do with building houses; it’s about building a new life for the town, so that the inhabitants are able to build a future for themselves. This project encourages the people to stay in the town and earn a little bit more money from their guest room. The owners are given hotel training so that they can administer the renting of the rooms.

Developing a town and making money does not have to destroy the environment. This project seeks to develop the economy of the town and make it self-sustainable. A community with economic resources and good planning is a community able to dispose of its garbage, install drains, drinking water or simply attend to nature, which is what makes the place so attractive.

“Techos de México” (Roofs of Mexico) is a franchise whose objective is to obtain financing and to organize and train the local community so that it is able to obtain the benefits of the tourism market and promote community tourism services.

We are very grateful to all those who have made contributions to the common fund and who have made interest-free loans.”

Chacala is a good example of how the community can become involved in a tourism project and how an infrastructure can be built.

There are various different options for accommodation in this beautiful spot on the Nayarit coast: there are the community rooms, if you want to mix with the local families; there’s the Mar de Jade or the Casa del Agua, at the extreme south end of the beach; here the architecture blends in perfectly with the natural contours of the land.

There are superb views from here of the sea through the palm, fig and the other tropical trees. Given all this, we strongly recommend this small, tranquil paradise for a restful vacation and for its delicious seafood and fish dishes.

Passport woes foiling travel plans abroad

By Mary Garrigan, Journal staff

A new mega-processing passport center capable of producing 10 million of the travel documents annually opens in Arkansas in April, but it comes two months too late to save the Mexican vacation plans of one Hill City family.

Jeff Parker of Rapid City talks with Carole Coon about the waiting period for passports Wednesday afternoon at the Post Office in Rapid City. The current waiting period for U.S. passports is 10 to 12 weeks.

“We wanted to take the kids to Mexico,” Bill Kilcoin said last week of his family’s planned March 10 vacation to Puerto Vallarta that had to be postponed and rescheduled when high demand for U.S. passports left three of their seven-member vacation party without the necessary travel documents.

The number of Americans applying for passports has increased dramatically since Congress passed the Western Hemisphere Travel Initiative, an anti-terrorism measure which requires that Americans have passports to re-enter the country when they travel by air from Mexico or Canada. People may still travel to those countries by car or cruise ship without a passport, but in 2008 that will change, too, according to local travel agent Jeanie Peterson of AAA Travel.

A deluge of applications that began in January and continues through April as college students made plans for spring break and tourists gear up for the summer travel season is causing unprecedented delays in the processing time.

“It’s taking up to 12 weeks to get a passport, and the closer we get to summer, the worse it may get,” Peterson said. “Expediting it still takes two weeks or more. We used to get them in three to four days.”

The State Department tells travelers to allow eight to 10 weeks for routine processing, and three to four weeks for expedited processing. Passport guidelines used to advise a six-week or two-week wait, depending on the processing fee paid.

The application fee for a new passport for ages 16 and older is $97. It is good for 10 years. The fee to expedite service is an additional $60, plus delivery fees.

Paying the extra expediting fee did not help the Kilcoins with their passport problems.
Bill and Linda Kilcoin got the first passports of their lives issued in January after only a 10-day wait, in plenty of time for a trip to Jamaica. But when they sent in passport applications on Feb. 9 for their children and granddaughter who they wanted to take to Mexico, they ran into bottlenecks in the system.

With a March 10 departure date looming and no passports in sight, the Kilcoins were advised by the Seattle passport agency to reapply for expedited passports. “A guy there said he would hand carry the applications where they needed to go and have them back to us in 48 hours,” Kilcoin said.

They did as instructed, and also rescheduled their airline reservations for a later date, at a cost of $150 per ticket for seven people. Then they waited for the missing documents to arrive in the mail.

“We got to know the night clerks and staff at the post office passport office very well,” said Kilcoin. “They were just bending over backward to get us our passports. The Rapid City post office was really very helpful.”

Despite the expedited processing, the documents still did not arrive in time for a March 12 flight.
“We got the passports on March 14,” Kilcoin said. “There must have been a hell of an influx in February, with everybody looking to go on spring break. They had to have just got swamped.”

Kilcoin said the Seattle passport agency blamed the bottleneck on a Los Angeles bank that has the contract to handle the checks and fees, but he thinks the State Department should not make new passport rules unless it can handle the resulting influx.

“Uncle Sam’s saying, ‘It ain’t our fault.” They can blame a private contractor for the bottleneck,” he said.

To handle demand, the National Passport Center is operating 24 hours per day in three shifts, and its 16 passport agencies are all working overtime. The NPC has hired more than 250 passport adjudicators in the last two years, and will hire an additional 86 this year. In March, 49 new adjudicators joined the staff. The new Arkansas facility is expected to alleviate backlogs.

Peterson predicts passport headaches will continue for the next year or two, as passports become routine for Americans. So many Americans drive across borders for recreation or medical reasons and, eventually, everyone will need a passport. “It’s coming. One day, all Americans will have a passport, just like Europeans do,” she said.

As peak travel times approach, Peterson warned that “this is only going to get worse” and advises travelers to plan ahead. The increased volume also increases the chance for human errors on the documents.

“When you get your passport back, we’re telling people to check everything on it to be sure it is correct,” she said. One female customer found her passport listed her gender as male.

Passport delays have not scared people away from travel, however.

“Our business is way up this year,” Peterson said.

The Kilcoins still plan to cross the border.

Despite the aggravation and expense of paying more money for a shorter vacation, the Kilcoin family is heading to Puerto Vallarta on April 6.

Have passport, will travel.

Nervous Nellie vs. Mr. Wing-It

One couple, two conflicting approaches to travel: Can this Mexican vacation be saved?

By M.L. Lyke
Special to The Washington Post
Sunday, March 25, 2007; Page P01

I never thought of myself as a travel wuss, but there I was, busted, browsing for rentals at an Internet cafe in the little Mexican tourist town of Rincon de Guayabitos.

"Get off!" said my road partner, Bob, the man who loves nothing better than tooling down a Mexican highway on a local bus, prepared for nothing but the next big adventure. No itinerary, no plans, no reservations. That's travel heaven for Mr. Wing-It.

For me, it's travel hell. I'm a need-to-know girl.

We cut a deal. We had two weeks in Mexico to tour the sweet little beach towns north of Puerto Vallarta. The first week, we did it my way, staying at a multi-story villa in the surfing town of Sayulita with three other couples. Our friend Jay -- an uber-organizer who actually logs the contents of his freezer on a computer spreadsheet -- booked the stuccoed manse a year in advance. By Day 2, we were already planning breakfasts and dinners for the rest of the week. We had grocery lists, a book to tally expenses and Jay to work them out to the peso.

It was safe, comfy, predictable, right down to 5 o'clock happy hour. Guacamole, chips, margaritas, every night. The only variable was peanuts.

Everything was under control, including me. I'd taken precautionary antibiotics -- all I have to do is look at a map of Mexico to get turista -- and had an extra-large bottle of spray-on sunscreen. I arose every morning at 9 a.m. to watch the surf heave, crest and break below, then stretched, sipped coffee and lost myself in a novel.

Ahhh. The beauty of routine.

On Day 7, I kissed it all goodbye. It was Bob's turn.

* * *
Our friends taxied south to the Puerto Vallarta airport, dropping us off on the side of coastal Highway 200 to catch a bus north to . . . "Where exactly are we going, Bob?"

I believe, as we stood by the road, dusty, sweating in the midday heat, he said, "Trust me."

Maybe it was "Don't worry, be happy."

When the bus finally came, I bumbled on with my duffel and backpack. Old men reached up to help me with the bags. Young girls smiled, patting the seats next to them. "Hola." "Gracias." It was a bath of Mexican goodwill. I tried to relax, but questions niggled the Nervous Nellie inside me as we rattled up the highway on a Saturday afternoon toward Rincon de Guayabitos. It would be weekend, high season, in a hopping tourist beach town. Would there be room at the inn? Or would we end up in some cockroach-infested room with sagging mattresses, stained sheets and a view of the town dump?

Couldn't we just, like, call ahead?

I love planning trips. Browsing online on a gray winter day, I picture myself swinging in a hammock in the exotic Mexican garden spa found on Hotels.com, or catching the warmth of first morning sun through the arched windows of the cliffside condo on Vacation Rentals by Owner.

That's fantasyland to Bob. He likes his investigations on-site, eyeball to keyhole, and that's what we did after we stepped off the bus in Rincon, into the hotel zone. Boy, was I wrong. "Si Vacantes" signs were everywhere along the oceanfront. Nellie had a home for the night.

Our unit at Bungalows Anai, recommended in the guide, wasn't cheap for Mexico -- about $75 a night -- and it wasn't fancy. The light fixtures were crooked, the refrigerator rusted, the faucets oxidized and the glasses chipped. But the place was clean, with air conditioning and fans, and we had a nice view across a manicured garden and a pool to the busy beach, where vendors pedaled bicycle carts full of inflatable water toys and skewered shrimp, and volleyball players set and spiked. Water-bike hot-doggers made roostertails in the surf, the machine whine mingling with the tinkle of ice cream carts and the distant buh-boom of rap blasting from trucks cruising the main drag.

If Sayulita was Laguna Beach, this was Coney Island. We were soon longing for seclusion, peace and quiet.

Bob pulled out his Lonely Planet guide, and his finger drifted north to Chacala, a fishing town on a cup of a bay surrounded by jungle. It was tiny, a speck, a guidebook paragraph -- so remote it didn't even merit a turn-off sign on the main highway. I was convinced we didn't have a chance at finding an empty room. And that's when I sneaked onto the computer in a Rincon Internet cafe and got busted.

Bob looked at me with a mix of sympathy and disgust. He may have used the word "cheater."

Contrite, I clocked off the computer, waved down a taxi and away we rumbled, leaving behind the buh-boom and blow-up beach toys and heading north into the lush groves of mango and jackfruit that crawled up the sides of an ancient boulder-strewn volcano overlooking remote Chacala Bay.

Six miles off the main highway, the taxi dropped us off on the dirt road serving as Chacala's main drag, in front of a deeply tanned couple who looked bemused when I asked them, a bit anxiously, if there was anywhere to stay in the town.

They pointed at the cobbled side streets above us, to a hotel, condo rentals, the half-dozen Mexican homes that take in tourists. They pointed down the beach to a holistic retreat center called Mar de Jade. "There, and there, and there." Then they pointed to a place about 20 steps away. "And here."

"Here" turned out to be a sweet beachside hotel called Las Brisas. "A hole diferent Vacations"(sic) read the hotel's brochure, in English translation.

For about $55 a night, we had a humble but pleasant little room with air conditioning, a DVD player and free movies, and two comfy queen-size beds. Downstairs, under the thatched roof, was a full bar, with good selection and generous pours, and a restaurant that served huevos rancheros for breakfast; fish, shrimp and lobster fresh off the boats for dinner. We ate barefoot, toes curling in the sand.

Las Brisas drew a crew of regulars from Canada and the States who set up every day on the loungers out front, deep-tanning, working crosswords, splashing in the gentle surf -- one called it a "kiddie pool" -- and spending long hours staring across the fine golden beach and out to sea. Looking at what?

Maybe big waves, ships, whales. Maybe, after the second cerveza, marlin and mermaids. Maybe, after three, old loves and lost lives.

I soon unfolded onto a lounger in this unexpected paradise and joined them in the Long Watch, eyes glued, mind unglued. As hours turned into days, and days melted away, I found myself mulling the nature of travel. I thought about all the great wanderers through time: Odysseus, Marco Polo, Kerouac, Frodo. I thought about the thrill of discovery that attends the adventurer, about the differences between trips and journeys, between tourists and travelers, between those who need to know and those who let it go.

* * *

I finally put niggling Nellie to rest on Day 5 of Week 2 during a crazy side trip that started with an early-afternoon taxi-dash to nearby Las Varas for a look around. Once there, we spotted the big bus station across the main highway. We wandered inside and, for the heck of it, plopped down 50 pesos each to bus it to the inland colonial capital city of Tepic.

We thought the trip might take a half-hour. It took almost two. I started worrying: We'd have to return in the dark, the buses wouldn't be running, we'd never find a cab back to Chacala from the station.

I was alternately chewing on my fingernails and gazing at my watch when I suddenly stopped and actually looked out the window at the beauty passing by. There were lush jungles, fields of sugar cane, rugged volcanic peaks. I saw pretty little towns with walls painted bus yellow and rose red. I saw bullrings and cemeteries with giant white crosses and pink memorial wreaths still wrapped in plastic. There were big blue birds with long tails and lush green trees fruited with tangerines.

There was a world going by, begging my attention.

And it didn't require advance booking.

I took a deep breath and settled in. Finally, I got it. I wasn't a hundred miles down the highway heading home; I was here, on a bus, off the clock, going nowhere in particular.

In all my fretting over the future, I'd been missing out on the romance of the moment.

We arrived in Tepic about 3 p.m. and quickly caught a taxi to the Plaza Principal, a town square surrounded by stately stucco buildings from the 1800s and a large neo-Gothic cathedral, dedicated in 1750. At one end of the plaza, we found shy Huichol artists, down from the mountains, selling intricate beaded masks and shamanistic yarn paintings at prices half those in Sayulita galleries. On recommendation of a government guard, we climbed up to the roof of a 200-year-old hotel to dine on velvety filet mignon in an excellent open-air restaurant, La Gloria, overlooking the town square.

Down below, as the sun set and the old wrought-iron lamps went on, couples gathered, a mariachi band began to play and dancers in big ruffled skirts and hand-tooled cowboy boots high-stepped and twirled in the fading light. We wandered down, and I, too, found myself dancing in the dark, not giving a thought to when, or if, we would ever get back.

We did, easily enough. The buses ran. The taxis were waiting at the station. I arrived back in little Chacala feeling light, liberated, ready for more adventure.

Mr. Wing-It caught my smile and couldn't help putting in the last word.

"See?" he said. "It all works out."

M.L. Lyke last wrote for Travel about La Manzanilla, Mexico.

Apple Vacations Honored by the Government of Nayarit, Mexico

Riviera Nayarit Poised to Become a Premier Vacation Destination

PHILADELPHIA, March 22 /PRNewswire/ -- Apple Vacations, the nation's leading tour operator to Mexico, was honored this week for its contributions to tourism development in Mexico, specifically in the State of Nayarit, located just north of Puerto Vallarta on the central West Coast of Mexico. The award was presented by Governor Ney Gonzalez Sanchez of the State of Nayarit, which is poised to become the one of the leading new tourism destinations in Mexico.

Receiving the accolades, Apple Vacations' Chairman and C.E.O. John Mullen noted the tremendous growth opportunities for travel to this developing region of Mexico. "With the continued planned development in this emerging vacation destination, Apple Vacations will support the State of Nayarit with a commitment to double the number of passengers to the region within the next five years." Part of the support includes an increase in the number of dedicated charter flights from U.S. cities to Western Mexico, and plans to offer new nonstop flying from East Coast gateways including Philadelphia and Baltimore. This is in addition to nearly 20 weekly flights from Cleveland, Chicago, Minneapolis, Detroit, Milwaukee, St. Louis, and Dallas.

The visit to Philadelphia by Governor Sanchez and other state officials, including the Minister of Tourism, marked the official launch of a major initiative, the introduction of a distinct new tourism region known as Riviera Nayarit.

Riviera Nayarit, just north of world-famous Puerto Vallarta on the Pacific Coast, is largely undeveloped and is being carefully planned to ensure the natural resources are protected.

Stretching from Punta de Mita all the way to the ancient fortress of San Blas, Riviera Nayarit provides a more laid back vacation experience. Eco-tourists can discover mangroves and habitats for hundreds of birds, dolphins and sea turtles. Accommodations are built with the utmost care in preserving the ecosystem, and range from quaint posadas on the beach to upscale luxury resorts. Activities include its world-renowned surfing, shopping at boutiques featuring local artwork and traditional handicrafts, golf, whale watching, hiking, horseback riding, and endless miles of unspoiled beaches and golden coastline waiting to be discovered.

"The tourism development in Riviera Nayarit is on par with what we saw happen in Quintana Roo, with the development of Riviera Maya over a decade ago," said Mullen. "This is where vacationers will want to go -- it is the 'new' Mexico and Apple Vacations plans to be at the forefront of bringing passengers to this exciting, up and coming region."

About Apple Vacations

For nearly 40 years, Apple Vacations has provided convenient, affordable vacation packages from all major U.S. cities to the most popular sun destinations. Apple Vacations was the first tour operator to deliver one million passengers to Mexico in the early 1990s. In 2006, Travel Weekly named Apple Vacations Best Tour Operator to Mexico. For more information about vacations to Mexico, visit http://sev.prnewswire.com/travel/20070322/CGTH03822032007-1.html# .

If you go: Chacala, Mexico

GETTING THERE

To go to Chacala from Puerto Vallarta, a taxi is easiest and costs $80-90, one-way. (It's a 90-minute drive.) Or for a fraction of that you can take a bus from the airport up Highway 200 to the neighboring town of Las Varas, then catch a collectivo vehicle to Chacala. Or you can rent a car at the Puerto Vallarta airport; all the major rental-car companies are there.

LODGING

Chacala Vacation Rentals, 760-300-3908, www. casapacifica chacala.com. Several luxurious houses in the gated Marina Chacala development are available for short-term rental, from $150 (for a one-bedroom unit) to $625 per night (for Villa Tesseri, which includes a house and guest house, sleeps 10 to 12 and features a swimming pool and a commanding view).

Majahua, on the beachfront (011-52-327- 219-4055, www.majahua. com), has four "suite" units (one has two bedrooms and two bathrooms) in a pair of buildings on a jungle slope down to the beach. Uneven paths make it risky for children and anyone with mobility problems, but the secluded setting and spa attract yoga groups and other escapists. Breakfast included. $110-$300 per suite nightly.

Mar de Jade, on the beachfront (800-257-0532; www.mardejade.com), has 30 units, neighbored by garden, pool and beach. Units have no phones or TVs, and most are fan-cooled, although air conditioning will be added to a few rooms this year. Family-friendly. Spa facilities. Three kayaks. Meals included in rates. Winter rates $110-$135 per person per day, based on double occupancy, or $135-$180 per day for singles.

Casa Chacala (Golfo de Mexico street, 011-52-327- 219-4057; www.casa chacala.com) opened three years ago with six units and a pool. Has air conditioning (a rarity), and word is that televisions are coming. Doubles begin at $50.

Several other hotels fall into this general class, the largest and newest being the 18-room Hotel Paraiso Escondido (also on Golfo de Mexico; 011-52-327-219- 4098, www.paraiso escondidochacala.com). Doubles start at $70.

The Techos de Mexico program (www.techosde mexico.com or www.chacala budget rentals.blogspot .com) has rooms priced at $22.50-$60 nightly. Most include kitchenettes and terraces with ocean views; all are within five minutes' walk to the beach, but housekeeping, telephone access and billing practices vary. Not much English is spoken.

EATING

Majahua has no roof and a pebble floor, but it's the fanciest restaurant in town, open for breakfast, lunch and dinner. Main courses $6-$13.

Las Brisas, beachfront, is a favorite with English speakers. Main dishes $5.50-$18.
Mauna Kea Cafe, on Los Corchos, just off Islas Marias, is a breakfast spot (8-10 a.m.). Prices $4.50-$7.

Beyonce and Jay Z's Mexican Holiday

It pays to be Jay Z. Oh, in so many ways, it pays.
Not only is the man loaded on his own, but his girlfriend is rich, too, and she recently used her hard-earned dough to treat him to a vacation.

Vacation from what? The hard work of getting richer, we guess.

Beyonce whisked Jay off to Mexico earlier this month to see "his favorite group" Coldplay perform in Mexico City and for a little bit of beach time. They reportedly dropped $11,000 a night on a villa--a stand-alone private residence, perhaps, but more likely one belonging to the Four Seasons in town.

The resort has private villas in the hillside and by the beach. They're not so forthcoming with prices on the web, which means the cost could easily be up there in the $11,000 range.

Punta Mita is on Mexico's Pacific Coast, 45 minutes from the mouthful that is Licenciado Gustavo Díaz Ordaz International Airport in Puerto Vallarta.

Idyllic resort, rooted in real life

Christopher Reynolds, Los Angeles Times

CHACALA, MEXICO - Sure, there's a great beach here, fresh fish, tall palms and only about 400 locals to share them with. But let's start with the treachery and deception.

"You wouldn't believe the snakes," says Ben Laird, a Wisconsonite who bought a vacation home here last year. "Snakes as big as your head."

"People are poisoned in Chacala every day," deadpans Richard Laskin of Hornby Island, British Columbia, who has been coming here for 10 years.

"Are you sure that was a whale?" asks Laskin's friend Stu Reid, gazing offshore. "Could have been drums of toxic material."

Then -- having done their best to deter the reading public from invading their winter haven -- these good-natured liars go back to their tropical idylls. Laskin and Reid tuck into their breakfast at the Mauna Kea Cafe, one of about 10 restaurants in Chacala, as they gaze down on a canopy of green, a deep blue sea and a few dozen pelicans swoop-commuting.

The truth about Chacala is indeed intriguing, especially for a traveler who wants to meet Mexicans while vacationing in Mexico, who likes his coconuts straight from the tree, and who doesn't need the bright lights of Cancun.

Chacala, a village 60 miles north of Puerto Vallarta on Mexico's Pacific Coast, is built around the beach, a handsome half-mile crescent of jungle-adjacent sand. At the southern end of the beach, gentle surf murmurs over volcanic rocks. In the middle of the crescent, a half-dozen palm-shaded restaurants serve fresh fish and shrimp. To the north, two dozen battered fishing boats are tied to a modest dock.

In town, several lodgings have popped up in the past few years, most offering ocean views, modest amenities and nightly rates from $50 to $90. A little farther north, more than two dozen luxury vacation homes, some of which rent by the night, have gone up in a gated compound called Marina Chacala.

The big difference

What sets Chacala apart from so many other modest but growing Mexican beach destinations is this: Thanks to the arrival of three hippie siblings at the end of the 1970s, the town is awash in social experiments, many built around the idea that locals and tourists need to meet and learn from one another.

Under one 11-year-old program, called Techos de Mexico (Roofs of Mexico), a half-dozen villagers have added upstairs rooms and terraces, most with ocean views. When not snapped up for the season by wintering Canadians, most of the rooms rent for $22.50 to $60 a night.

Tourists can volunteer on community projects, attend yoga or meditation seminars or learn Spanish at a 24-year-old beachfront retreat called Mar de Jade, which in winter is usually priced at $120 to $135 per person per night, double occupancy, meals included.

Still other visitors and expatriates have bankrolled a community library, paid for improvements at the elementary school and developed a scholarship program that underwrites the transportation, books, uniforms and other education costs of more than two dozen local youths.

(The public schools in Chacala stop at secondary school, and high school diplomas are as rare as air conditioning.)

But you don't have to volunteer. Instead, you can spend $50 a night on a hotel room with an ocean view and lie around. Or spend $625 a night on a mansion that sleeps 10 and lie around in splendor.

You can take a $10-per-person boat trip to snorkel by the rocks off Chacalilla beach. You can fish for dorado or sierra or surf at La Caleta Point. You can kayak between rock formations and secluded beaches, go birding in a mangrove swamp to the north or drive half an hour east to the petroglyphs at Alta Vista.

You can ride a horse through jungle to a secluded beach or drive about two hours into the hills and see Lake Santa Maria, its waters collected in the caldera of an ancient volcano. Or you can stroll on that grand crescent of sand.

"Some nights, the sunsets just tear your heart out," says Andee Carlsson, who moved here three years ago from Washington state. Carlsson, who rents a room in one of the Techos houses, said she came because it was affordable and the gardening was year-round. She stays because "the people here make me feel good," she says. "People just help you out, and you get to help people out."

Until the first paved road connected the village to Highway 200 seven years ago, the only way into Chacala was by dirt road or boat.

I arrived after a three-hour flight from Los Angeles to Puerto Vallarta, then a 90-minute ride, and my first thought, rolling into town, was, "Uh-oh." Two blocks of dirt roads, sleeping dogs and ramshackle storefronts. That was the commercial district.

Ahhh, but then I stepped out to the beach. It was nearly empty, a slight breeze blowing. The tall palms, the quiet, the loop of the beach between the rocky points at either end -- this was a landscape to banish worry.

"It's still real Mexico down there," said Laird, he of the imaginary snakes, gazing at the town from his hilltop home in Marina Chacala. "Chickens at your feet. And everybody knows everybody."

Yet it's growing by the day, and there's all this experimentation.

The implausible dream

By many measures, Chacala's modern history began 27 years ago, when Laura, Om and Jose Enrique del Valle arrived from Mexico City in pursuit of an implausible dream: On a patch of land at the southern end of the beach, they would build a retreat for foreigners that would boost cultural understanding and support a rural medical clinic.

Operating out of an old school bus, they put up eight rooms with shared bathrooms, light provided by candles and lamps, refrigeration by ice blocks. They called it Mar de Jade.

The partnership didn't last. But the business has. These days, Mar de Jade could pass for a rich man's vacation compound. Surrounded by gardens, it has 30 rooms, a spa, a couple of big meeting rooms, a shaded patio that seats 50 or so, a palm-shaded pool, a prime spot on the beach -- and a medical clinic in nearby Las Varas that often draws volunteers from the numbers of medical professionals and students staying at Mar de Jade. Laura del Valle, a 56-year-old physician raised in Chicago and Mexico City, owns Mar de Jade and runs it with her 21-year-old daughter, Angelica.

These days, they house mostly med students and other volunteers in summer and mostly vacationing couples, families and groups in winter.

Laura's half brother, Jose Enrique, has carved out his own niche on 2 1/2 acres next to Mar de Jade.

Drawing on his background as a builder, civil engineer and former tour guide, he and his wife, Carmen, built and opened Majahua, a four-room boutique hotel, spa and restaurant on a jungle slope, in 1996. It's the only lodging in town where you're likely to hear American jazz on the stereo, order a Mediterranean salad or wash your hands in one of those stone-bowl sinks you see in design magazines.

But it remains a jungle enterprise: Indoors or out, you may spy a spider or two. You spend a fair amount of time navigating the footpaths that connect the guest rooms to the dining area, and the dining area to the beach. And if the hot water runs out during your shower, that'll be because the propane tank has run out and it's time for somebody to lug a full one up the hill.

To many in town, Jose Enrique del Valle is best known as the coordinator of Techos de Mexico. Started in 1996, inspired by the work of Habitat for Humanity and largely bankrolled by donations from the north, it's a construction-loan program to connect villagers with tourists and their dollars.

So far, the program has built four houses and expanded three others, spending $4,000 to $9,800 on each project. Three landlords have already paid off their loans.

The only real downside, says Jose Enrique del Valle, now 50, is that "it's a lot of work. I'm exhausted."

But as the renovated schools and the library near the middle of town demonstrate, more activists have arrived in the Del Valles' wake. One is Susana Escobido, who runs the Mauna Kea Cafe with her husband, Poncie, rents out a few rooms by the month, sells homes in the Marina Chacala development and is co-founder of Cambiando Vidas (Changing Lives; http://www.chacala.org)/ which spends about $40,000 yearly to boost local schools, underwrite a learning center and fund scholarships.

A boom in visitors might well boost local living standards. But many repeat visitors and locals say that if the wider world learns more about this place, the wider world will elbow its way in, change it beyond recognition and cut the locals out of the action.

So plenty of eyes are watching the state-owned RV park at the edge of the beach, where a would-be buyer has proposed condos, and Marina Chacala, where unbuilt lots are priced at $200,000 and up. The developers there have already made enemies by blocking locals' access to a small beach that had been public.

My last morning here, I hiked up the old volcano slope behind Majahua, marveling at the thickening jungle.

The foliage around Chacala is thick partly because of a tree known as the strangling fig. It begins as a parasitic seed lodged in the trunk of a host tree, then sends tendrils down, hits dirt and starts growing like mad, first embracing then enveloping its host, zooming to 50 feet or more.

The figs love palm trees. And because Chacala is full of palms, it's also full of these tree couples in towering embrace. Reference books say the host trees usually die first, but locals say the entangled pair can grow and prosper together for years.

I'm glad to hear that, because when you take your beachfront seat to laze away a Chacala afternoon, you want to believe these palms and this place will last.

Entrepreneurial spirit on the Nayarit coast

-- Christopher Reynolds
Posted March 18 2007

To many in town, Jose Enrique del Valle is best known as the coordinator of Techos de Mexico. Started in 1996, inspired by the work of Habitat for Humanity and largely bankrolled by donations from the north, it's a construction-loan program to connect villagers with tourists and their dollars.

So far, the program has built four houses and expanded three others, spending $4,000 to $9,800 on each project, splitting revenues between landlords and the loan fund. Three landlords have already paid off their loans, including Concha Velazquez, who told me that her family had been dependent on her husband's uncertain income as a fish merchant. They opened Casa Concha in 2001, paid off their loan three years later and have expanded to three rental rooms.
The only real downside, says Jose Enrique del Valle, now 50, is that "it's a lot of work. I'm exhausted."

But as the renovated schools and the library near the middle of town demonstrate, more activists have arrived in the Del Valles' wake. One is Susana Escobido, who runs the Mauna Kea Cafe with her husband Poncie, rents out a few rooms by the month, sells homes in the Marina Chacala development and is co-founder of Cambiando Vidas (Changing Lives; http://www.chacala.org/), which spends about $40,000 yearly (much of it raised among U.S. Rotarians) to boost local schools, underwrite a learning center and fund scholarships. Twenty-seven local youths are studying on scholarships right now, from eighth-graders to college students.

"The Nayarit coast is just exploding, whether we're ready for it or not," Escobido says. "We want to make Chacala a community of entrepreneurs."

Need a U.S. passport fast? Be prepared to pay

By Jane Engle, Los Angeles Times Staff Writer
March 16, 2007 Related Stories

MARGARITA in hand, you are lounging on a stretch of sand near Puerto Vallarta, Mexico. Not a care in the world.

Except this: That's your dream, but the reality is that you don't have a current passport, and you're due to fly to Mexico in a month. Uh-oh. You'd better dump the drink and grab your checkbook — and the Alka-Seltzer. Trying to get a passport on short notice can be a nail-biter that costs hundreds of dollars — if you can get one at all.

Swamped by applications, caused partly by new rules that require passports for air travel to Mexico, the Caribbean and Canada, the State Department is taking longer to issue the documents.

Getting a passport can take 10 weeks instead of the usual six from the time you apply, officials said earlier this month. Even if you pay extra for expedited service, you may wait four weeks or more instead of the usual two.

And that's just the official estimate. Any number of problems — errors on the application form, computer breakdowns, weather that hinders mail delivery or staffing problems at processing centers — can stretch the wait, possibly forcing you to cancel your trip.

Even doing that costs money: Airlines may charge you $100 or more to change your ticket. For all these reasons, you should apply for or renew your passport at least three months before you go abroad, several experts told me.

Better yet, start the process now, even if you have no trips planned. After all, a passport is good for 10 years, and who knows when you might travel?

If you have less than six months left on your passport, renew it before your next trip, or you may be refused a visa or even turned back at the border by some countries, which worry that you'll overstay your welcome.

If you delay, costs can snowball. Here's the tally:

•$97: total government fees for a new passport for a traveler 16 or older; renewals are $67.

•$60: fee for expedited service, paid to U.S. passport agency.

•$45.78: estimated total fees for FedEx Standard Overnight two-way shipping between Los Angeles and the National Passport Processing Center in New Castle, Del. (Fees vary by company and date.)

This shipping method is recommended for expedited service.So far, we're up to $202.78 for a new passport and $172.78 for a renewal. But what if you need your passport sooner than three or four weeks?

You have two options. The State Department says that if you are scheduled to leave the country within 14 days, you can call its toll-free line, (877) 487-2778, to make an appointment at one of its Regional Passport Agencies, including one in Los Angeles. Making an appointment is free. But if you don't live near a regional office or can't get an appointment soon enough, your other option is to engage a private expediting company.

Such companies can help you get a passport more quickly. Their secret? Each passport agency allows expediters to file a certain number of rush applications per day on behalf of their clients. These applications may be processed in as little as a day, depending on the agency.

Expediting companies extract the final cha-ching from passport procrastinators.
•$99 and up: typical service fees by expediters. These vary by company and by how quickly you need your passport.Yikes!

By delaying, your $97 passport now costs more than $300. Whether to work with an expediter is a judgment call. Most big ones work mainly on contract with businesses and nonprofits, so as an individual client, you fall last on their list.

"We always take care of our top customers first," said Steven Diehl, vice president of business development for CIBT, one of the largest expediters, based in McLean, Va. "Then we take care of our retail clients, if we have any spaces left." Your $99 doesn't ensure that you'll get your passport on time, either.

"We give a guarantee on our services, but we can't guarantee the government's service," said Jan Dvorak, president of another big expediter, Travisa visa service, in Washington, D.C. He said his percentage rate of success in meeting deadlines was "in the high 90s."

When shopping for an expediter, ask how long it's been in business and whether it belongs to the National Assn. of Passport & Visa Services, www.napvs.org, a nonprofit trade group in Silver Spring, Md. (Not all companies belong, but many bigger ones do.)

By Jane Engle, Los Angeles Times Staff Writer
March 16, 2007 Related Stories

Demand surge delays U.S. passport applications How to apply for a U.S. passport MARGARITA in hand, you are lounging on a stretch of sand near Puerto Vallarta, Mexico.

Not a care in the world. Except this: That's your dream, but the reality is that you don't have a current passport, and you're due to fly to Mexico in a month. Uh-oh. You'd better dump the drink and grab your checkbook — and the Alka-Seltzer. Trying to get a passport on short notice can be a nail-biter that costs hundreds of dollars — if you can get one at all.

Swamped by applications, caused partly by new rules that require passports for air travel to Mexico, the Caribbean and Canada, the State Department is taking longer to issue the documents.

Getting a passport can take 10 weeks instead of the usual six from the time you apply, officials said earlier this month. Even if you pay extra for expedited service, you may wait four weeks or more instead of the usual two.

And that's just the official estimate. Any number of problems — errors on the application form, computer breakdowns, weather that hinders mail delivery or staffing problems at processing centers — can stretch the wait, possibly forcing you to cancel your trip.

Even doing that costs money: Airlines may charge you $100 or more to change your ticket. For all these reasons, you should apply for or renew your passport at least three months before you go abroad, several experts told me. Better yet, start the process now, even if you have no trips planned.

After all, a passport is good for 10 years, and who knows when you might travel?

If you have less than six months left on your passport, renew it before your next trip, or you may be refused a visa or even turned back at the border by some countries, which worry that you'll overstay your welcome.

If you delay, costs can snowball. Here's the tally:

•$97: total government fees for a new passport for a traveler 16 or older; renewals are $67.

•$60: fee for expedited service, paid to U.S. passport agency.

•$45.78: estimated total fees for FedEx Standard Overnight two-way shipping between Los Angeles and the National Passport Processing Center in New Castle, Del. (Fees vary by company and date.)

This shipping method is recommended for expedited service.So far, we're up to $202.78 for a new passport and $172.78 for a renewal. But what if you need your passport sooner than three or four weeks?

You have two options. The State Department says that if you are scheduled to leave the country within 14 days, you can call its toll-free line, (877) 487-2778, to make an appointment at one of its Regional Passport Agencies, including one in Los Angeles. Making an appointment is free. But if you don't live near a regional office or can't get an appointment soon enough, your other option is to engage a private expediting company.

Such companies can help you get a passport more quickly.

Their secret? Each passport agency allows expediters to file a certain number of rush applications per day on behalf of their clients. These applications may be processed in as little as a day, depending on the agency.

Expediting companies extract the final cha-ching from passport procrastinators.

•$99 and up: typical service fees by expediters. These vary by company and by how quickly you need your passport.Yikes! By delaying, your $97 passport now costs more than $300. Whether to work with an expediter is a judgment call.

Most big ones work mainly on contract with businesses and nonprofits, so as an individual client, you fall last on their list. "We always take care of our top customers first," said Steven Diehl, vice president of business development for CIBT, one of the largest expediters, based in McLean, Va. "Then we take care of our retail clients, if we have any spaces left." Your $99 doesn't ensure that you'll get your passport on time, either.

"We give a guarantee on our services, but we can't guarantee the government's service," said Jan Dvorak, president of another big expediter, Travisa visa service, in Washington, D.C. He said his percentage rate of success in meeting deadlines was "in the high 90s."

When shopping for an expediter, ask how long it's been in business and whether it belongs to the National Assn. of Passport & Visa Services, www.napvs.org, a nonprofit trade group in Silver Spring, Md. (Not all companies belong, but many bigger ones do.)

Buying abroad: Mexico becomes a bit easier

While it still can be an adventure, experts say that the process of buying property in Mexico has changed dramatically in recent years.

By Kevin Brass Published: March 15, 2007

Sarah Booth acknowledges that she was scared the first time she bought property in Mexico.

She had heard the stories of frauds and shady transactions, and her Spanish was limited to asking for restaurant checks. But two years ago she fell in love with a 45-square-meter, or 500- square-foot, condominium a block from the beach in Puerto Vallarta, which she bought for $115,000.

Now she owns three properties in Mexico.

"I just decided I'm going to risk it and jump in," said Booth, 38, a former property manager from Whistler, Canada. "You have to have a sense of adventure."

While it still can be an adventure, experts say that the process of buying property in Mexico has changed dramatically in recent years. Title insurance and the wide availability of mortgages have added a new level of security to transactions and encouraged an increase in the number of foreign buyers.
Buying abroad: Mexico becomes a bit easier
A Norman manse with theatrical élan
Stewart Title, which began offering title insurance in Mexico in 1993, has seen its Mexico business triple in the past three years, said Mitch Creekmore, senior vice president for business development at Stewart International and co- author with Tom Kelly of "Cashing In on a Second Home in Mexico."

But buying in Mexico still can be a complicated, frustrating process for the uninitiated, experts warn. Until recently, escrow accounts were rare, and agents still are not licensed, adding a level of uncertainty for first-time buyers.

"You have to do your own due diligence," Creekmore said.

Booth discovered one of the complications when she tried to resell a 35- square-meter condo in Puerto Vallarta. The transaction was delayed for 10 months while she waited for local government officials to produce a copy of her deed.

"It can be frustrating," Booth said. "You have to have patience."

And beyond patience, it is important to recognize the potential obstacles in Mexico property deals, longtime participants in the real estate business say.

Some examples:

There are restrictions on foreign ownership of land within 50 kilometers, or 31 miles, of the coast and 100 kilometers of all borders, including all of Baja California. In most cases, any residential buyer who is not a Mexican citizen must place the property in a Mexican bank trust, or fideicomiso, which is controlled by the buyer and easily renewed after 50 years.

The national real estate association, Asociación Mexicana de Profesionales Inmobiliarios, recently signed an agreement with the National Association of Realtors in the United States that allows its members to use the Realtor designation. But there still is little oversight of operating practices.

"You have to have a reputable broker, period," said J.P. Money, who runs www.mls4rivieramaya.com, a property listing service for the Riviera Maya. "Ask for references and ask people who have bought from them before."

Capital gains tax can take a large bite out of rosy profit estimates. This year the tax rate is 28 percent, although there are ways to structure a transaction to avoid paying, especially if the house is a primary residence.

Although the practice is technically illegal, it is not unusual for a seller to record a much lower purchase price to avoid taxes — and then an unsuspecting buyer, trying to resell the property, is called upon to pay tax on the recorded increase in value.

"That is very, very common in most of Mexico," said Linda Neil, founder of Settlement, a transaction consultancy based in La Paz, Mexico. "Buyers need to be sure the full price is recorded on the deed."

Some buyers are shocked to find that closing costs can be as much as 10 percent of a property's value, especially along the coast. Undisclosed fees for condominium associations and maintenance also may add to a transaction's overall expense.

Tracking a property's title can be difficult. Large tracts often are controlled by ejidos — collectives of landowners — and in some cases sellers do not have full title to the land.

"Probably the biggest land mine is distinguishing the difference between private property and ejido land," Neil said. "If title insurance won't cover the title, that's a big red flag."

Spring breaker-free beaches

Looking for a sandy escape but loath to share your stretch of beach with beer-guzzling college students?

We don't blame you. Over 100,000 students travel to resort areas throughout Mexico each year on spring break, according to the U.S. Department of State. Other favorites include Nassau, Bahamas; Panama City, Fla.; and San Juan, Puerto Rico. Most see rambunctious revelers from mid-March to mid-April.

Then there is Cancun. Arguably the mother of all spring break destinations, it is living up to its reputation by hosting MTV Spring Break 2007 through the end of this week. But there's little doubt the party will carry on long after the cameras are packed away.

Fortunately, for those seeking a more peaceful setting than the satellite set of Total Request Live, there is a select group of properties across Mexico, the Caribbean and the southern half of the U.S. that cater to a more sophisticated, upscale clientele.

One such locale? Barbados. Brokers at the Sandy Lane-based Altman Real Estate company, which rents out several high end villas along the West Coast of Barbados to honeymooners, families and sometimes larger groups, take extra precautions when interviewing potential clients in the spring. "Our reservations agents will not permit a house full of college-age revelers," says Jan Gordon, the company's marketing consultant. If a group of college kids finagle a reservation and arrive, the house manager, who greets all guests at the airport, can refuse to escort them back to the villa. The island in general emits a super-posh vibe, ensuring public beaches aren't riddled with breakers.

Other spots, including the Ritz-Carlton on Amelia Island, are relying on reputation--and price--to draw in a quieter crowd. With an oceanfront room and the presidential suite ringing in at $659 and $3,200 per night, respectively, cash-poor students might well be deterred.
"We think of this as a coastal retreat," says Farley Kern, director of public relations at the resort. "The prevailing feeling on the island is quiet, casual and comfortable--it's not that typical spring break scene."

The Ritz has upped its own ante by relaunching the highly acclaimed Salt restaurant this past December. The revamped menu, created by Catalonian chef Jordi Vallez, has received a five-diamond rating from AAA, the highest in Florida. Those seeking tequila shooters best look somewhere else.

Mexicali Masterpiece But the ultimate escape from spring break enthusiasts just might be the Casa Triton in Careyes, Mexico.

© Villa AmanecerLos Cabos is a favorite among Californian college students, so it’s no wonder upper-crust escapists find refuge on The East Cape, just an hour south. Here rests the secluded Villa Amanecer de los Sueños. It comes equipped with a jacuzzi, barbecue and incredible views of the Sea of Cortez. Each bedroom includes its own patio, bath and king-size bed.

At $75,000 per week, guests of this out-of-the-way villa experience the convenience of a personal chef, butler, driver and masseuse as well as the opportunity to partake in all sorts of outdoor activities, from whale-watching to horseback riding. The six-bedroom house, noted for its aesthetic appeal in publications including Architectural Digest, books up fast, says reservations manager Wayne Hudson, especially in spring, its most popular season.

Bahamian Beauty Developers are expecting spring to also prove a prime period for The Cove Atlantis -- the highly-anticipated Bahamas resort opening next month.

George Markantonis, president and managing director, Kerzner International Bahamas, is hoping to create a scene at The Cove that’s “more luxurious, more edgy and truly different than anything that exists right now in the resort category,” he says.

The property has 600 suites (featuring French balconies and step-down living rooms), as well as outposts of celebrity chef Bobby Flay’s Tex Mex Mesa Grill restaurant and hip Las Vegas nightclub Aura.

But however hot these Cove spots might become, don’t expect students to pop up at the next table. A week-long stay in a two-bedroom Azure suite will run you upward of $9,000.

Beachy Keen Over on the West Coast, vacationers will find a discreet alternative to the busy streets of Los Cabos, another popular spring break site. The Villa Amanecer de los Sueños, right on the Sea of Cortez, is just an hour south. An enclave boasting incredible ocean views, it also boasts modern furnishings that include marble floors and granite countertops.

But perhaps most important of all, it has access to pristine private beaches. Which means it's certain you won’t have to relive your college years this vacation season--unless you want to.

Real Estate: We'll See Blood in the Street Before This Bubble Bursts

Stockerblog submits: In my opinion, the real estate market has a long way to go before bottoming out. Why? Because owning real estate is not like owning stocks. There is no liquidity. In addition, the real estate bubble took several years of froth before it peaked. I remember back in 2002, there was a lot of house flipping going on. People were buying two or three houses in new developments and reselling them before the houses were even built. I kept thinking this can't last much longer, but it did.

Then in 2003, I heard from friends about listing houses for sale and getting multiple offers of $10,000 to $20,000 above asking. I kept thinking this can't last much longer, but it did. In 2004, people were telling me about getting five to ten offers of $50,000 to $100,000 over asking price. I read articles in the newspaper about a couple that bought a two bedroom, one bath fixer in Silicon Valley for $1.2 million. I kept thinking this can't last much longer, but it did.

Finally in 2005, I got cold called about a rental property that I owned, asking if I wanted to sell. I asked how much they thought I should list it for and they said it was worth $440,000. I said that I wanted to list it for $639,000 and they thought I was crazy. I then received a call from my former secretary who said she just got her real estate license. I told her I would give her the listing if she would list it at the price I wanted, and of course she jumped at the chance. That summer, I got two offers over the asking price. If that wasn't the top of the market, then I didn't know what was and nor did I care. As it turned out, it was the top.

Now I see examples such as a house in my neighborhood that was put on the market last year for $1.1 million, later reduced to $939,000, later reduced to $829,000, the listing expired and picked up by another broker who listed it for $799,999, yet it is listed on zillow.com as being worth only $685,000. I'm sure you've seen and heard other stories in your area.

The froth in real estate lasted for several years before the turn; now I think we have to see blood in the street for several years before this is over. Readers of my previous article about shorting the sub-prime lenders, and the followup article about the 26% return in four days, created an interest from readers about other possible shorts, or put purchases. The short party for sub-prime may be almost over but there are other areas of real estate where this drop could reverberate, such as residential construction.

Here are three worth investigating as possible shorts:

Ryland Group Inc. (RYL) is a California based homebuilder and mortgage lender. Quarter revenues dropped by over 11% year over year, and their quarterly earnings sank by 40.4%. The stock is currently at 43.10, way above book value of 35.46. They owe almost a billion dollars in total debt.

Meritage Homes Corp. (MTH) is a single family homebuilder based in Arizona which concentrates primarily in the southwest, with developments in Arizona, California, Nevada, Texas, Colorado, and Florida. [My personal opinion is that Nevada will get hurt the worst in terms of the real estate markets.] Meritagehad a 21% reduction in quarterly revenues and over a 90% drop in revenues. Operating cash flow is a negative $21.9 million.

Brookfield Homes Corp. (BHS) is a luxury and move-up homebuilder that operates in California and the Virginia area. Quarterly revenues dropped 29.8%, quarterly earnings dropped 49.8% and the stock sells for 2.3 times book value.

FundVallarta Announces Online Resource For Mexico Real Estate Investment

NewswireToday - /newswire/ - Leander, TX, United States, 03/15/2007 - fundVallarta announces a full online resource for discovering real estate investment opportunities in Puerto Vallarta, Mexico. With conditions similar to the property boom in California, Puerto Vallarta is poised to become an international performer.

Historic property investments may point to a significant current investment opportunity in beachfront property in Mexico.This is the best beachfront coast line for real estate investment and vacation getaways in the world. fundVallarta.com (fundVallarta.com) has been monitoring the trends in beach front property and believes that Puerto Vallarta is not only desirable property, but has the potential to be a significant investment opportunity.Did you know?Puerto Vallarta has a population of 350,000 with 2 million visitors annually.

Puerto Vallarta has been named the best beach in Latin America by Travel and Leisure Magazine Readers Survey (all 25 miles).Humpback whales winter in the Bay every year. Dolphins, giant mantas, sea turtles, and over 100 species of birds also live here.

The Puerto Vallarta area and surrounding region has a very active real estate market.

Source: Virtual VallartaDan Ralph, Director, US Marketing and Investor Relations, has a very exciting story to tell. His award winning investment strategies have helped to finalize millions of dollars in property acquisitions each year. Regarding the potential boom in ocean front property in Puerto Vallarta, Dan Ralph notes, "[This is the best beachfront coast line for real estate investment and vacation getaways in the world."

In addition, Dan has developed a website to assist those who may find themselves interested in real estate investment opportunities in Puerto Vallarta. The real estate investment boom in Mexico can provide personal enjoyment in the, "beautiful Bay of Banderas, which comprises over 50 miles of pristine coastline between Yelapa, Jalisco to the south and Rincon de Guayabitos, Nayarit to the north. Guayabito is located in the heart of the Gold Coast of Nayarit, which is considered to be the present day 'California of Mexico'."The partnership at fundVallarta.com is well versed in both American and Mexican property laws and cross-cultural investment opportunities.Dan's website provides a listing of current offerings along with a comprehensive knowledge-based resource center providing applicable articles for your consideration. A blog is also available to help answer any questions you may have.

About Dan Ralph: Director of fundVallarta.com US Marketing and Investor Relations - He was a 6th round draft pick for the NFL team, the Atlanta Falcons before being traded almost immediately to the St. Louis Cardinals. While an injury cut his professional football career short, he brings skills learned playing sports to the investment table. He is a quick thinker with a no-nonsense business approach. He was honored with the Stock Broker of the Year award and he is a top producer for Mexican real estate sales. He founded the leading audit company used by General Motors in addition to another eight successful marketing companies.

$900 Billion Invested in Global Real Estate during 2006

Global Commercial Real Estate Investment Rose 38% in 2006 to $682 Billion;
U.S. Total Transaction Volume Rose 32% to $271 Billion in 2006
Jones Lang LaSalle Issues 'Global Real Estate Capital' Report
CHICAGO, March 12 /PRNewswire-FirstCall/ -- Jones Lang LaSalle's latest
global real estate capital report, released today, records global real
estate investment of US$682 billion in 2006, a surge of 38% over 2005, and
nearly double 2003 volumes. Globalization of the asset class continued
relentlessly as 42% of investment value now involves a cross-border
transaction (i) (up from 34% in 2005), and 29% were inter-regional (up from
23% in 2005) (ii).

Already a new annual record for the asset class,
investors posted an additional $218 billion to the total transaction volume
with residential and entity-level deals accounted, bringing the total
aggregate global real estate investment volume to $900 billion -- the
strongest ever performance by global real estate markets.

Tony Horrell, CEO of Jones Lang LaSalle's International Capital Group,
commented: "There is currently a large overhang of investment targeting the
sector with $4 of money chasing every $1 of product. Global real estate
markets performed very strongly throughout 2006, and it was the first year
that all major developed and emerging market returns were both aligned and
positive. Investment was driven by increased allocations to the asset
class, growth in investible for investment and by the increased attention
of opportunistic private equity players who identified relative value in
the sector. These increased flows into real estate gave rise to two notable
phenomena in 2006 -- an increasing number of 'mega-deals' and continued
globalization of the asset class."

The United States accounted for 40% of global transactions by value and
the UK accounted for 15%. The German and Japanese markets have almost
doubled their share of global volumes to 9% and 8% respectively, and the
German market now attracts the same share of global cross-border investment
as the U.K.

United States: A Domestic View

Total transactions in the United States were US$271 billion, up 32% on
2005 levels. Manhattan, by far the largest market in the United States (14%
of national market), experienced strong transaction growth with investment
increasing by 61%.

The volume of cross-border border transactions in the United States
more than doubled to $65 billion, and accounted for 24% of total U.S.
transaction volume (up from 14% in 2005). However, a significant portion of
this activity was sell-side transactions completed principally by German
and Global funds (defined as funds originating from multi-regions) as the
Germans freed up liquidity by selling significant U.S. holdings. Manhattan
captured a disproportionate share of cross-border investment -- accounting
for 21% of total cross-border investment into the United States -- spurred
by the sub-six percent vacancy rate in Midtown, tightening conditions in
downtown and additional demand for space extending into New Jersey as
tenants compete for a finite amount of availability.

The United States remained the largest investment destination of cross-
border transactions with 23 percent of the total global real estate
transactions by value, followed by the United Kingdom (18%), Germany (18%)
and France (8%). In the United States, global sources of capital easily
accounted for the most cross-border purchases in 2006, with $17.2 billion
(43% of cross- border purchases), followed by Canada with $4.6 billion
(11.7%), the U.A.E at $4.3 billion (10.8%), Germany at $2.8 billion (7.0%)
and Australia with $2.7 billion (6.8%). On the cross-border sell-side,
German investors and global sources of capital tied for most active in
2006, each selling $11.1 billion (31% each of cross-border sales) of U.S.
properties. Following were Canada with $3.1 billion (8.7%), Japan at $2.4
billion (6.8%) and Australia at $1.4 billion (4.1%). On a net-investment
basis, global sources led by buying $6.1 billion more in U.S. properties
than they sold in 2006, followed by the U.A.E. with net investment of $3.8
billion, Hong Kong investors at $2.2 billion, Canada investors at $1.5
billion and Australian investors at $1.3 billion. Total cross-border
purchases in the United States rose 86% to US$39.6 billion, up from $21.3
billion in 2005.

"Given the liquid and transparent real estate market in the United
States, we continue to see record-setting capital inflows from overseas
investors into high-quality product in high performing markets such as New
York," said Steve Collins, Managing Director of Jones Lang LaSalle's
International Capital Group. "With the favorable exchange rates for foreign
investors, we expect U.S. properties throughout the major markets, and
specifically in Manhattan, D.C., Boston, Los Angeles and Chicago, to
attract strong international investor interest in 2007 with little end in
sight."

U.S. Market Highlights

Cross-border investment increased in nine of the nation's top 10
markets by volume in 2006, except in Los Angeles where economic recovery
concerns linger. Manhattan experienced the largest yearly gains with total
investment of $37.3 billion and, of that, cross-border investments more
than tripled to $14.8 billion. Total investment was also up strongly in
Boston (81%) with cross-border surging more than five-fold to $4.9 billion;
in Atlanta (31%) with cross-border transactions nearly tripling to $1.9
billion; in Chicago total volume increased (30%) to $16.2 billion while
cross-border activity doubled to reach $3.8 billion; and in Dallas (20%)
with cross-border transactions more than doubling to $1.8 billion.

Report highlights:

-- North and South America: Direct commercial real estate investment in
the Americas reached US$283 billion in 2006, up 31 percent on 2005.
Cross-border investment represented 25 percent of total investment (up
from 16% in 2005) and inter-regional investment reached 22 percent of
total investment (15% in 2005). Investment markets in the Americas
region are overwhelmingly located in the United States (96% of the
region's transactions by value). Other investment markets include
Canada and the rapidly growing cross-border markets of Latin America -
dominated by Mexico and Brazil.

-- Private Equity Fueling the Market: private equity investors have
rapidly accumulated portfolios by pursuing entity-level deals. This
phenomenon, particularly prevalent in the United States, saw the
privatization of REITs and other listed real estate owners valued at
over US$48 billion in 2006. In February 2007, Blackstone purchased
Equity Office Properties Trust, the world's largest REIT, for US$39
billion highlighting both a potential arbitrage between public and
private markets and opportunistic investors' enormous appetite for
real estate assets.

-- Cross-Border Investor Mix: The mix of cross border investors in the
Americas changed significantly in 2006, with Australian, German and
Hong Kong investors dramatically reducing their purchasing activity.
Major cross-border purchasers in 2006 included Global funds (US$18
billion), Canadian funds (US$5 billion), and Middle Eastern funds
(US$5 billion). German funds sold real estate valued at US$11
billion, principally located in New York, Boston and Chicago and
purchased assets valued at US$3 billion (Chicago and Philadelphia).
Australian funds, having dominated the United States cross-border
market in 2005, reduced their purchase activity to US$3 billion
(predominantly retail) and shifted their attention to Europe.

Looking ahead, Steve Collins concluded: "Total transaction and cross-
border volumes continue to rise globally, and real estate continues to
produce a stable return that is paying off for investors across the globe.
We expect 2007 to be at or near the record volumes of 2006. With the
weakened dollar, we also expect an increased level of cross-border
investment into the United States, and the probable return of German
buy-side investing."

Collins also noted that investment vehicles have opened up in the
United States that should impact growth in global transaction volumes. "The
emergence of the Collateralized Debt Offerings (CDO) market provides
investors -- specifically highly leveraged Opportunity Funds -- the
opportunity to place additional, cheaper, non-taxable debt on an investment
without encumbering the other financing positions. This will allow buyers
to increase returns because they can now push underwriting values to higher
levels due to this inexpensive new debt in the marketplace."

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE: JLL), the only real estate money management
and services firm named to FORTUNE magazine's "100 Best Companies to Work
For" and Forbes magazine's "400 Best Big Companies," has approximately 150
offices worldwide and operates in more than 450 cities in over 50
countries. With 2006 revenue of over $2.0 billion, the company provides
comprehensive integrated real estate and investment management expertise on
a local, regional and global level to owner, occupier and investor clients.
Jones Lang LaSalle is an industry leader in property and corporate facility
management services, with a portfolio of more than 1.0 billion square feet
worldwide. LaSalle Investment Management, the company's investment
management business, is one of the world's largest and most diverse real
estate money management firms, with approximately $40.6 billion of assets
under management. For further information, please visit our Web site

http://www.joneslanglasalle.com/ .

(i) Cross border investment is where purchaser, vendor or both originate
from outside the country where the asset is located.

(ii) Cross border investment is classified as 'intra-regional' investment
(both purchaser and vendor originate from the region where the asset
is located) and 'inter-regional' investment (purchaser, vendor or
both originate from outside the region where the asset is located).

Methodology:

Previously reported transaction volumes were revised in
2006 to exclude the investment grade residential sector. The report
now focuses on the commercial real estate sectors popular with inter-
regional investors, and excludes multi-family residential real
estate.

Annual figures, like-for-like comparison:

Total Cross-Border

2003 $354 billion $90 billion
2004 $393 billion (+11%) $114 billion (+26%)
2005 $475 billion (+21%) $164 billion (+43%)
2006 $682 billion (+38%) $288 billion (+73%)