Trump Baja Questions & Answers

Since introducing the Trump Ocean Resort Baja Mexico (Trump Baja) to our clients, many of you have written us to ask follow-up questions about the resort. It is our pleasure to share with you some of these questions and their answers, as prepared by Joel Greene, president of Condo Hotel Center.

Q. Baja, Mexico is not a well-known vacation place like Las Vegas, Miami or Hawaii. I'm concerned that I will be paying the mortgage and other living costs but will only be staying in my condo hotel unit for a few weeks a year. The rest of the time it will likely remain empty.

A. Hardly! Have you ever heard of a Trump Hotel that remains empty?!! That's not exactly how Donald Trump became a success! His hotels are notorious for their high occupancy rates and RevPar (revenue per available room).

Additionally, the Trump organization and Irongate, a well-established development company out of Los Angeles, don't build a property until they have thoroughly researched its feasibility and potential. Both firms are well known for their ability to pick up-and-coming destinations and create iconic properties that operate profitably and appreciate significantly over time.

Q. How can I ensure that I'll be able to keep the condo I purchase at Trump Baja rented and generating enough income to offset my ownership costs and maybe even result in positive cash flow?

A. For one thing, when not in use, you will not need to rent it out to generate income. Donald Trump's sophisticated management team will operate the property and will be responsible for renting out and maintaining your unit just as they will every other room in the hotel.

Again, long before you or I ever heard of Trump Baja, Donald and his developer partner, Irongate from Los Angeles, did a lot of research to determine if this was a good location to build a hotel. The fact is if it was not going to be a successful hotel, it would have no chance of being a successful condo hotel either. The decision was a resounding yes.

Q. Are you getting a lot of interest in this property? Does there seem to be much demand for it?

A. Based on the number of reservations requests I've had so far, this could end up being the #1 most requested property Condo Hotel Center has ever offered in our more than four years of condo hotel sales! The interest has been nothing short of unbelievable.

Let's face it, where are you going to find a five-star oceanfront vacation home with rent-earning potential priced in the mid $200,000s! And it sure doesn't hurt to have Trump's name on it, or to be 10 miles away from California, which has some of the most expensive real estate in the U.S.

Q. Why Baja, Mexico? It seems like a pretty off-the-beaten-track location for a condo hotel?

A. Evidently, this area in Baja where the Trump Baja will be located, because of its close proximity to San Diego, is a very attractive and popular place for Americans to visit on a year-round basis.

I've read that they (builders, government officials, etc.) are expecting a boom in Baja just like they had in Cabo, Mexico 10-15 years ago. Developers are already flocking to the area. Buying now, at this very early stage in the area's growth, is the best way for investors to realize significant appreciation.

Additionally, there really is no competition of this quality hotel/resort for the Trump in Baja. Contrast that with places like Las Vegas where EVERY property can boast that they're the biggest and the best, and they are usually right---until the next new hotel is officially announced. Then they become as passé as bell bottom jeans and clogs overnight.

Q. It seems like there is very limited information on the Trump Baja at this time. Will buyers be provided all the details such as association fees, taxes, and any other costs and floor plans before signing the contract?

A. Yes! In fact, you'll learn most, if not all of those things prior to selecting a specific condo hotel unit. Also, just so you know, many of those details are being hammered out now; it's not just that they're being kept a secret. Remember, you're getting in on this project at the very earliest stage of pre-construction, and that's the reason for so many unknowns.

Q. Is there someone on-site at the Trump Baja with whom I can speak? I just would feel more comfortable if I spoke with someone directly before sending in my deposit.

A. We can put you in touch with our on-site salesperson. She can easily answer any questions and give you first-hand descriptions about the site. We will gladly provide you with her name and phone number upon request.

Q. Is Baja, Mexico the only place where Donald Trump is building a condo hotel?

A. No. The Trump organization is very enthusiastic about the condo hotel concept. Among the other cities where he is building are Fort Lauderdale (two condo hotels), Waikiki, Las Vegas, New York City (SoHo), Panama and Toronto. Read more about these properties at our "all Trump, all the time" website, www.TrumpCondoHotels.com.

Also coming soon are Trump condo hotels in Atlanta, Israel and Dubai, United Arab Emirates.

Q. Can you explain what is meant by the Trump Baja condos being offered as fee simple ownership?

A. Fee simple means that you can sell, will, improve your property, etc. However in Mexico your ownership title is in a bank trust and you are the sole beneficiary, similar to a family trust in the U.S.

Q. With regard to the rental program, will hotel rent revenue be pooled among the owners?

A. No. It is against the law to pool rent revenue of condo hotels in the U.S., and those same rules will be applied to Trump Baja, even though it is located in Mexico. Owners will receive payouts based on how much revenue their individual condo hotel unit earns.

Q. The Trump Baja units all have decks or balconies. Do you know what their square footage will be?

A. It will depend on the size of the condo hotel unit. Here's how it breaks down:

• 110 square feet for studio units
• 159 square feet for one-bedroom units
• 265 square feet for two-bedroom units
• 385 square feet for three-bedroom units
  
  

Q. Are there different floor plans available?

A. Trump Baja will offer 18 different floor plans and a variety of unit sizes, so you'll have plenty from which to choose.

Q. Why do you think the Trump Baja seems to be so popular?

A. The answer is fairly simple. If you want a vacation home that is oceanfront, fully furnished and outfitted, offers unobstructed ocean views, in a five-star resort, only 30 minutes from downtown San Diego, and carries the prestigious Trump name, then Trump Baja, with prices starting in the mid $200,000's, is an incredible value.

Q. What is available now at Trump Baja?

A. Condo hotel units at the first of three towers of Trump Baja can be reserved now. Once this first building is sold out, the second will be put on the market. Construction will start on building one by winter 2006. Building one and two should be completed within the next two years. Building three is probably three to four years down the road.



Q. Is crossing the U.S.-Mexico border a hassle?

A. At heavily trafficked times such as a Sunday afternoon, it can take well over an hour to get through the border. However, there is a sentri pass (fast track), that the developer will assist Trump Baja owners to obtain. That sentri pass will lessen the wait time to just 15-20 minutes.

There will also soon be new border access to the Otay Crossing that will help alleviate the San Ysidro crossing.

Q. How far is Trump Baja once you get over the border? Do you have directions to the site?

A. Trump Baja is a short 10-minute drive from the San Diego border. Here are directions:

• Cross the border into Mexico from I-5 or I-805.
  
  
• Once you have crossed the border, stay on the third lane from the left.
  
  
• Follow the signs that direct you to the Scenic Highway to Rosarito and Ensenada
  
  
• After making a cloverleaf-style turn, the road parallels the border for about two miles. Then head up and down a steep hill where you will be alerted to exit to the right. The sign for this road will be "Toll Road" and/or "Scenic Road."
  
  
• Two miles later you will pass through the toll gate ($2.60).
  
  
• After you pass the toll gate, Trump Baja Ocean Resort will be the second exit.
  
  
• Exit Punta Bandera/Punta Del Mar and the Trump Ocean Resort Real Estate Preview Center will be on your right hand side.
  
  
• Trump Baja is located at KM 16 Toll-Road, Punta Bandera Baja California 2260.
  
  

Q. Can you describe the Trump Baja location with regard to its proximity to other cities?

A. Within a 30-minute drive you can be in: downtown San Diego, town of Rosarito (touristy Mexican town of 120,000 people), the wine country, sand dunes, Ensenada (port town, cruise ships stop here) or in Tijuana which has fabulous restaurants.

Trump Baja is just two miles from the Marriott 18-hole public golf course and 45 minutes from Baja Mar, which is referred to as the Pebble Beach of Baja.

Trump Baja is within a six-hour drive of southern California, Las Vegas, and the Desert.

With regard to airports, Trump Baja will be located only 30 minutes from the San Diego International Airport and 30 minutes from the Tijuana International Airport. There will be a shuttle service from the airports to Trump Baja, and then you would have access through the commercial crossing which is faster than passage with a personal vehicle.

Q. What's the best time of year to visit Baja?

A. Anytime! The weather is similar to San Diego's coastal areas, but with constant ocean breezes keeping it cool in summer. Year-round the area enjoys an almost perfect climate with mild winters and balmy summers.

Q. Can I drink the water in Baja?

A. As opposed to mainland Mexico, Baja's water is from wells and has been considered safe for years. In addition, there is a Mexican federal law stating that restaurants must serve purified, "drinkable" water, tested free of contaminants both for drinking and for ice.

Q. What about money and credit cards?

A. The peso is the official currency of Mexico but being so close to the border dollars are accepted almost everywhere, and credit cards are taken at most major restaurants, shops and hotels. There are also ATM machines in town. They accept Visa and MasterCard and dispense bills in pesos. You'll also find several banks and money-exchange houses in the central downtown area where you can make money exchanges.

Q. I don't speak Spanish. Will I be able to communicate?

A. English is spoken almost everywhere in the main tourist areas.

Q. Do I need a passport?

A. Entering Baja for up to 72 hours and exploring as far south as the seaport city of Ensenada requires no visa or other paperwork for U.S. or other citizens. Simply drive across the border (as almost 180,000 people do each day), and enjoy the native foods, music, festivities and fabulous crafts of Mexico --- without the bureaucratic hassles usually inherent in foreign travel.

And whether you stay the day, the night or the weekend, you can return to the U.S. just as easily. Only non-U.S. residents must present passports and visas for entry. U.S. citizens need only proof of citizenship, like a copy of your birth certificate, to re-enter California --- and rarely is even that requested.

For Baja stays beyond 72 hours a tourist card is required. These can be obtained free from international airlines authorized to travel to Mexico, the Mexican Consulate in San Diego or the Mexican Immigration office just across the border at San Ysidro. Proof of nationality is required to obtain a tourist card.

Q. Do I need special insurance for my car?

A. If you're driving, Mexican auto insurance is strongly recommended since your U.S. auto insurance is not valid anywhere in Mexico. Inexpensive Mexican insurance can be purchased by the day, week or month at numerous highly visible locations near the border on both sides.

Getting Mexican insurance is so quick and easy that many of these places have drive-through windows. A number of San Diego rental car agencies also rent vehicles to Rosarito and Baja and provide the Mexican insurance.

Q. What can I bring into Mexico?

A. You can bring your car, personal clothing, camera and other items for personal use without any problem. For general merchandise, such as food or medicines, there is a per-person limit of up to $400 U.S. dollars duty free. Anything over that amount has to go through Mexican customs and pay import duty.

Firearms are illegal in Mexico although special permits can be obtained in advance for hunting. Check with the nearest Mexican Consulate for regulations regarding hunting permits.

Q. What can I take home?

A. You can take back $400 per person duty-free including one liter of alcohol. Mexican arts and crafts are duty-free and don't count toward your $400 limit. If traveling by common carrier (bus, cruise ship, plane or train), more than one liter of alcohol is allowed however only the first is duty free.

The following items are legal in Mexico and readily available everywhere in the border area, but cannot be brought into the United States: Cuban cigars, turtle products, switchblades, butterfly knives and fireworks. For full customs information, contact a U.S. Customs office or check the U.S. Customs web site.

Q. What are the alcoholic beverage and drug laws in Mexico?

A. The legal drinking age is 18 and most bars and night clubs request an ID before admittance when they doubt the customer's age. Drinking on the streets is against city ordinance and fines are imposed on offenders. Drinking and driving is a jailable offense that also carries a heavy fine.

It is a criminal offense to use, possess or traffic in illegal, mind-altering drugs (cocaine, marijuana, heroin...etc.). Even the possession of a few grams can bring a jail sentence of eight years or more.

Legal, medicinal, mind-altering drugs (such as Valium) require a medical prescription for purchase and use. Many common prescription drugs are available over the counter in Mexico at approximately ½ to 3/4 of U.S. prices.

Q. What if I get sick while on vacation?

A. There are five good hospitals and numerous highly trained doctors in Rosarito, just 30 minutes from Baja. Ambulance and helicopter transportation to the United States are available in emergencies. Many thousands of U.S. citizens have vacation homes or full-time residences here. They wouldn't have chosen this area unless excellent health care was available.

Q. What time is Mexico on?

A. Most of Mexico is on Hora del Centro, the same as U.S. Central Time.

Q. What fuels the hot Mexico market? How hot is it?

A. Low costs and improving health care are fueling this growth. Living costs are far less throughout Mexico than in the U.S., and Americans can buy an oceanfront second-home in Baja, about 30 minutes south of San Diego, for about one-third of what it would cost north of the border.

Already 1.5 million Americans own homes in Mexico, according to the Mexico Association of Real Estate Professionals. This number will skyrocket to 12 million by 2025, the group predicts, as more baby boomers retire south of the border. And a study last year by the American Association of Retired Professionals ranked Mexico number four among places in the world Americans are moving to retire.

Q. With regard to the Baja area, why is it suddenly so popular, not just with Trump but with other developers as well?

A. Some have referred to it as a perfect storm -- the simultaneous occurrence of events that become exponentially more powerful as a result of their chance combination. Such occurrences are rare by their very nature, but when they occur in the business world, fortunes can be made overnight.

As we speak, a perfect storm is brewing in the Baja Real Estate sector due to the convergence of several potent market drivers. The result has been annual appreciation in excess of 30 percent, with no signs of slowing. The coastal region between Rosarito and Ensenada has been experiencing explosive growth and supply has not kept up with demand. Thousands of condominiums are springing up on the waterfront, and most are sold long before construction is complete. So what exactly are these forces?

• Changes in government policy: With thousands of miles of coastline, land is Mexico's No. 1 asset and tourism its top industry. The country's incoming president is pro-development and actively promotes foreign real estate investment. Furthermore, it's now legal for foreigners to take fee simple title through a bank trust called a Fideicomiso.
  
  
• U.S. financing and title insurance: A handful of major lenders recently began making mortgages available for foreign-owned Mexican homes. These new loan programs are a result in part of the availability of title insurance from companies like Stewart Title.
  
  
• Location: Northern Baja is the only place in the world where undeveloped oceanfront property with a Southern California climate is still available, and because most destinations are 30 to 40 minutes from the United States, buyers are snapping up housing at a record pace.
  
  
• Affordability: Comparable coastal properties in California are priced four to five times higher, making the Baja oceanfront a far more viable second home choice.
  
  
• Demographics: The wealthiest generation in history is the primary group driving the Baja market. Baby boomers are nearing retirement and their disposable income and active lifestyles make Baja the perfect second home choice.
  
  
  

Q. How do costs for a Trump Baja condo hotel unit compare with costs for units at other Trump properties?

A. If you've always wanted to own a piece of a Trump, the Trump Baja is your big opportunity. As an example, prices for the least expensive studio units at the Trump Tower Waikiki started at $460,000, not that it's likely you could have gotten one anyways. There were over 1,600 reservations placed for 460 units on the very first day, and at least 220 units were held back for buyers in Japan.

At the Trump Internatinal Fort Lauderdale, prices for studios started at $799,000. In Chicago, a Trump studio would have cost you at least $815,000, and at the Trump Las Vegas studios start at $760,000.

By comparison, Trump Baja prices are nothing short of unbelievable. They will start in the mid-$200,000's (U.S.). Firm prices have not yet been established, as you're finding out about this property very early in the development process.

But just knowing that they start in the $200,000's should be enough to get you thinking that if I was going to consider a studio unit elsewhere for $500,000+, maybe in Baja, I could get a one- or even a two-bedroom unit and live like a king for the same money!

Q. If I want to reserve a unit at Trump Baja, what's the next step?

A. Contact Joel Greene at Joel@CondoHotelCenter.com and request our Trump Baja data sheet and reservation forms. He will provide you with everything you need to proceed.

Please include your full name, address and phone number for our records to receive this information. Your personal data will not be sold or misused in any way. (We hate spam too!)

If you are interested in learning more about this condo hotel property, please contact us now for more information. There is no cost,and no obligation. We will respond within 24 hours (usually much sooner). If you can provide us with your name, address and phone number, we will be sure that you also receive any updates on this property from the developer. Your information will not be sold or misused in any way. (We hate spam too!) Contact Joel Greene at Joel@CondoHotelCenter.com or call (954) 450-1929.