Oppenheim Group & MoXi In Cabo, Mexico

Video Transcript - (with Maria & Alen)

Maria:

Okay. This is awesome that we are here. Well, Oppenheim Group, it's very well known because they became very famous as a result of a Netflix series, Selling Sunset, that it became very, very popular. Well, we are not going to talk about the series here, but just to put you in context. Well, first of all, I would like Alen to share with our audience what is the story behind, because this is the storytelling section. So I would like to know what would be the story of the Oppenheim Group, behind that, deciding to come to Cabo?

Alen:

Well, the story is pretty short and long at the same time. I was hired by Grupo Questro, which is a big land developer here in Los Cabos in Mexico, as a sales director to run the sales division, the real estate division. And shortly after I started, I realized we need to open a brokerage to summarize all the inventory you have into one pot, and we did that for about a year. And through the running of this brokerage, it was called Ideal Luxury Homes, we realized that we lacked brand recognition. We did have a good tour flow from our hotel and the resorts, potential buyers, but the public market was lacking simply of the recognition part, and that's when we started to talk to Jason and Brett about the possibility of partnership. And after a year into the pandemic, they liked the terms and we came to an agreement, and we decided to open the fourth branch in Cabo San Lucas.

Maria:

Okay. And what do you think would have moved Jason and his brother to starting in this market, completely in Cabo?

Alen:

They never did any business in Mexico before, and the pandemic really changed Cabo upside down. And they were very, very impressed with the inventory and the numbers that Cabo pulled during the time, and that was the major piece that made them actually saying yes to the whole agreement. Plus, partnering up with the Sanchez Navarro family, open locations in Mexico that most agencies don't have access to, which was very appealing for them.

Maria:

Okay, perfect. Well, how long have you been in Cabo since you opened?

Alen:

I've been in Cabo since the end of 2018. I moved to Mexico in 2003. It was in Cancun Playa del Carmen at the time, and fell in love right away with the people and the warm of the weather and-

Maria:

And everything, yes.

Alen:

... just everything else, yes, ever since I moved around and ended up here in 2018.

Maria:

Yeah. Well, since my perspective, what you do is you are more oriented to the luxury market.

Alen:

We are. It's our niche. Our luxury market's definitely the niche. However, there's a misconception going on that we do not sell anything below. We do. We sell everything that we get hands on, but our expertise is definitely in the luxury market, yes.

Maria:

Yes. And why do you think that Cabo is the destination that is much well known in the US as a luxury destination? Because I think that from the numbers that I know, most of the buyers in Cabo are from US. And, well, in other parts of the country, maybe like PB or like Puerto Vallarta, they have a different mix. They have more balance between Canadians and US. What do you think that makes this place so attractive for the US investors?

Alen:

Mostly the proximity. The proximity to the West Coast was always very attractive. Everything is within two, three hours flights. And unlike the rest of Mexico, Cabo is a very unique place. It's very safe. Everybody speaks English. Everything is in US dollars, and a lot of elder generations love the park. They came always to Cabo for the last 20, 30 years to fish and to golf. And now with the pandemic, I think we reached a whole new level and opened the doors for a whole new demographic of clienteles.

Maria:

Yes. And what you're saying is very interesting, because I think that before the pandemic or years ago, this place was more perceived as a place for celebrities of Hollywood, the artists or sports celebrities. And after the pandemic, we start seeing a lot of developments, huge developments that their price point are not as high as a luxury market. It's going to be high if you compare to the rest of the country.

Alen:

Yes.

Maria:

But definitely, what do you think about this market that it's growing right now?

Alen:

It's definitely a new market. As you maybe know, during the pandemic, Cabo really ran out of inventory. There was no inventory left around 2021 by mid of the end of 2021, and that helped basically developer to come to Cabo and start developing inventory on the lower price points as well. And that opened obviously a whole new generation be able to afford cabos. And now you have literally anything from a hundred thousand dollars all the way up to $30 million, which before wasn't the case.

Maria:

Okay. And how do you see the market in this particular moment that all this political things happening in the US... And I have seen a lot of posts in Facebook like jokes, saying that now the American dream is to have enough money to move to Mexico. And so do you think what is happening in the US since the political perspective is going to impact the market in Cabo, a potential...

Alen:

Yeah, it definitely enhanced it. I believe Cabo had a big push with the pandemic when people realize they don't have to fly for hours and hours to Hawaii to have the American dream. And they came to Mexico. They came to Cabo, in particular, and they fell in love with it. They see why people are investing and why people want to be here. And now, this year was kind of a strange year for myself, and I think a lot of my colleagues. The first three months was very kind of slow and people were a little bit hesitating to purchase because of the things, what's happening in the world. But in the last three months, we see a big outcome on sales and people actually moving, and the market turned around. And I believe this was going to be a great summer.

Maria:

Yeah. Well, as you know, the seasons here in Cabo are very... You can tell when it's summer. It's starting to get very hot in here, but I think that the best season for Cabo, it's from October that the Bisbee-

Alen:

The Bisbee starts, yep.

Maria:

Bisbee starts. So do you expect that the next season is going to be better than the past one?

Alen:

Absolutely. Absolutely. I think the one obstacle that's ahead of us is the election in the States. And from there on, I do believe we're going to have a fantastic high season, which again, the last three months is a great indicator that's already happening.

Maria:

Perfect. Okay. Well, what do you think... Well, as you know, we are partners in finance and options for Oppenheim clients. And I would like to ask you, what's your opinion about, regarding the financing for US citizens to buy properties in Mexico, since I think that in the past, agents were not very aware that the possibility of getting a mortgage for your clients would be helpful. What do you think about this?

Alen:

Yeah. In the past, as you said, a lot of agents were just not aware how the procedure is and what the options are. But also, the interest rates in the US was a lot lower than it is right now, so the cap was a lot bigger and most people didn't want to spend this extra interest cost, but that changed over the last six months. And I believe having MoXi now in town and interest rate being very comparable to US, it's a great tool to have, and it's very transparent, it's very easy to use and I think it's a great tool for sales.

Maria:

Yeah. I always said to clients that the market, the investors, the profile, it's completely different because in the past, we used to have a lot of second home buyers. And right now, we have a new generation in productive age that they are looking to invest in real estate, because having a property, for example, in Cabo, you can rent it very well and you can also get money from the property. Do you think that if you have a property in Cabo, you have this mixed use? It's more people that are looking for that right now?

Alen:

Absolutely. Absolutely. As I said before, there was not much inventory in the lower range to actually go into this investment. And now, with the new developments happening and the hotel rates averaging $500 and more, that's a great option for rental. That's a great option to flip a home, and that's what we see in the last year and a half, younger clients coming in and they want to put their foot between the doors and start into this business.

Maria:

Okay. Well, thank you Alen for receiving us. This is a very short interview. I wish we will have more time to talk about many other things. I would like to come back maybe next season so you can tell me how is the market going and how are your insights about what is going on. And I would like you to just tell us where we can find Oppenheim Group, tell us what's your web page and everything so all the people that's looking at us right now can know where to contact you. And whenever you need a property, this is the right place to come.

Alen:

Thank you. Thank you, Maria. Thanks for coming. So we are reachable on the website ogroupcabo.com, but also on the official webpage, ogroup.com. And we are located actually in Hacienda Beach Club at the Medano Beach right behind the Marina. I think it's the best office, as Maria already offered, mentioned.

Maria:

Yes, it's the most beautiful real estate office that I have seen here in Cabo.

Alen:

They put a lot of time and effort into it.

Maria:

It's very exquisite. All the decoration is very nice.

Alen:

But yeah, whenever you have any questions, please send us an email, give us a phone call. We are here for you.