Frequently Asked Questions
Casa Manzanillo LLC ~ Manzanillo (Colima)
From $18,500/ ownership share ** - SEE BELOW

You have asked about becoming a co-owner of our oceanfront property along the coast of sunny Mexico. Colima, known for its year round temperate climate, pristine beaches, and 350 days of sunshine, has a number of connecting flights from the US and overseas.

This central coastal area of Mexico is known as the Mexican Riviera due to its miles upon miles of palm trees and golden beaches. There are several internet sites you may want to visit to learn more about Colima, and Manzanillo in particular. The best two are www.mexperience.com and www.gomanzanillo.com.

Some of you have heard reports of drug and border violence (as we had) and may wonder what the true scenario is in vacation spots like Manzanillo. Susan Dearing, longtime Manzanillo resident and author says the following about safety:

“Quit worrying about your safety just because newspapers headlines or some government agency issued a travel advisory. The bureaucrat sitting in a high rise office in Washington, D.C. and passing judgment on an entire country has most likely never visited Manzanillo, and certainly has never traveled the country as extensively as I have! That would be like telling tourists not to take their kids to Disneyland because there was a drive-by shooting in East LA! Please!

Manzanillo isn’t Mexico City, nor is it Los Angles, New York, Detroit, for Toronto. Every city in the world has its plusses and minuses, but Manzanillo is, for all practical purpose, one of the safest and most friendly places on earth.”

It is quite simple for any nationality to own a part of our property and I believe that most of your questions may be answered below:

What is a property share and how do I become a part of it?

Like many other international travelers, we loved the idea of having one or two “homes” abroad where we could know our neighbors and the local culture, but we found it impractical and expensive to own and maintain a home we generally used for a month of so each year.

This is a unique opportunity to purchase Mexican property/real estate without a large outlay of capital. As an exclusive member (shareholder) of our LLC, you literally own percentage share of the LLC (limited liability Company) which owns and manages the property. The notario in Mexico establishes a bank trust which owns Casa Manzanillo LLC.

How is this different from a time share? It is completely different. You own your percentage of the property outright and can easily sell or donate your time to another as well as participate in the appreciation of the property. You typically have the use of 4 or more weeks per year. With a time share you do not “own” your property or participate in any appreciation of it. Also you are restricted to specific dates which you can use within certain locations in a fixed number of years.

Why do we use US Limited Liability Company?

Our LLC home shares are member –formed companies which allow the shareholders to own and manage real estate in accordance with the conditions of the Operating Agreement.

What is an Operating Agreement?

The Operating Agreement sets out the rights, obligations and duties regarding the LLC and its assets and liabilities. An agreement typically includes: Definitions, Formation, Members and Membership Interests, Management, Budget an Accounts, Meetings, Member Use Rights, Accounting and Records, Transfer of Interest, Distributions, Withdrawal and Dissolutions, Indemnifications and Amendments.

What kind of agreement is there between the owners? Is there a management company? What are the expenses associated with management?

We have an operating agreement for each of our houses. This document can be sent electronically for your review. It outlines the rights and responsibilities of co- ownership and must be signed as part of the buying process.

Currently, we have an inside manager role which is a requirement of the LLC. Typically this manager does not pay dues but does not coordinate the annual meeting, distribute financials, assure that annual dues are paid, and liaise with our property management agent in Mexico.

How does each shareholder reserve time at the house?

As an owner, you will purchase a four week block of time which will remain yours in perpetuity. You can trade weeks of time with other owners of Casa Manzanillo or with owners in our French home share network.

**What do the 4 week shares cost?

1. Jan & Feb - SOLD
March 16 - April 13 $32,500. USD
April 14 - May 11 $31,000. USD
May 12 - June 8 $29,900. USD
June 9 - July 6 $29,900. USD
July 7 - Aug 3 $18,500. USD
Aug 4 - Aug 31 $18,500. USD
Sept 1 - Sept 28 $18,500. USD
Sept 29 - Oct 25 - SOLD
Oct 26 - Nov 23 - SOLD
Nov 23 - Dec 21 - SOLD
Dec 22 - Jan 19 - SOLD

What annual expenses might I expect as an LLC shareholder?

Expenses will include homeowner insurance, taxes (property taxes), and routine utilities and maintenance. These cost are estimated to be $US 100/month/year per owner. From time to time, capital improvements to the house are required. The beauty of a home share is that all house cost are divided by the number of shares in the L.L.C.

Are the annual meetings typically at the property? How do you accommodate those of us who live a great distance from the property?

Our annual meetings thus far have been in the states.

Is there a caretaker who oversees cleaning and assesses the condition of the apartment?

Yes, each of our LLC’s has an established caretaker who is responsible for cleaning and linens after each visitor. All damage to the property or complaints from building occupants are communicated to our manager. Each member (or their guest) is personally responsible for leaving the home share in the same condition they found it.

Can we rent out our time?

Our Operating Agreement does not typically allow for commercial rentals. We do, however, have the option of occasionally allowing our family or friends to use out time and pay our operating expenses so long as each guest has read, signed, and will abide by the house rules instructions.

Is there a resale market?

Yes, there is a resale market. Thus far, we have typically had someone in the wings ready and interested in a share (friends of members, other family members, etc.) All of the shares have sold for the same of higher prices. The procedure for resale is outlined in our operating agreement.

So what’s next?

1. Learn whether a share home in Mexico is right for you.
2. Ask for a fact sheet describing the in’s and out’s of fractional ownership.
3. Take a look at the Operating Agreement which describes the rights and responsibilities of joint ownership in Casa Manzanillo.
4. Learn what other owners have said about owning our shared properties.
5. Ask about the ease of resale.
6. Decide to either travel to visit the property or view it by seeing our photo story.
7. Call us to get acquainted: 830-456-8334 OR 830-456-4318