Business For Sale Mazatlan Ad:741327

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MXN20,000,809

(USD 1,200,000)

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Business 7 bedrooms
For Sale
Mazatlan
Mexico

Marketing Prospectus � Casa de Leyendas & Macaws

Overview
This is a Bed and Breakfast/restaurant business that is for sale for $1.2 million USD, which includes all existing furniture and amenities for a full turn-key operation. Casa de Leyendas is a very successful Bed and Breakfast (B&B) that has been in business since October 2005 and is one of the top rated B&B`s in Mazatlan. The restaurant Macaws was opened in 2012 and has been a successful compliment to the B&B business. In Google searches the B&B shows up in the top position, which results in continuous bookings. It is located in a prime location in the historic district (Historico) of Mazatlan just a short block from Olas Altas Beach and has become a destination spot for tourists as people continue to restore the old buildings of the area. Many say the area is very similar to the French Quarter area of New Orleans.

History
The property was acquired from the family of Dr. Hector Gonzalez Guevara M.D. The property was owned by Dr. Hector Gonzalez Guevara for many years and is located in the Historic District of Mazatl�n. At the home and around the city of Mazatl�n, you will find photographs, diplomas, plaques, and statues bearing the name of Dr. Hector Gonzalez Guevara. Dr. Hector Gonzalez Guevara was one of Mazatl�n`s devoted medical doctors and politicians. He held many public offices including a member of the House of Representatives and at one time was the Mayor of Mazatl�n. Dr. Hector Gonzalez Guevara was also outstanding in his medical career. The local Institute of Social Health and Security was named after him, and it is the largest hospital in the region to this day. Dr. Hector Gonzalez Guevara is a truly a Legend whose memory has been kept alive in this Bed & Breakfast.
Prior to its use as a grand Mexican residence, the property was a storage place for gold bullion back in the 1800`s. Legend has it that some of the gold remains buried within the courtyard that all our visitors will be welcome to sit and enjoy.

These two Legends live on . . . . hence the name Casa de Leyendas, which is Spanish for House of Legends.

Four Americans formed a Mexican Corporation to purchase the property and then spent 1 � years totally refurbishing this wonderful house. A few things were changed, but for the most part the house was left in its original Hacienda style. Over the years, the owners have continued to add to the property making it the magnificent building it is today.

The B&B was successful since it opened its doors for business in October 2005 and then enhanced its sucess by opening Macaws restaurant in 2012. The two businesses integrate very well together.
You can view what the house originally looked like before the refurbishing project began at:
watch?v=BGFLAwjMD4c

The three owners invested a substantial amount of money to turn this old Hacienda into a beautiful B&B that maintains most of thee charm and characteristics of the original house. You can see the current house at:
watch?v=zXBtiuFCvt8

The Corporation
The Corporation was established in 2004 under the name Naciente del Sol, SA de CV, which in English means `rising sun`. There are currently 6,244 shares that are currently owned in full by three of the original partners. Being owned through the Corporation, means the ownership of the property is owned Fee Simple by the Corporation rather than through a Fideicomiso. Typically, foreigners acquire irrevocable and absolute ownership rights to property in Mexico through a 50-year perpetually renewable and transferable Bank Trust called a Fideicomiso. However, in this case, the Corporation purchased the property and the Corporation is wholly owned by three Americans.
There is a real benefit to purchase the shares of the Corporation rather than buy the property. The closing costs of a property purchase typically average 8% of the selling costs while the closing costs of a share purchase are generally less than $500 USD. Additionally, the buyer of the shares would own the Corporation and thus the property Fee Simple rather than through the Fideicomiso.

Business Climate & Profitability
When the home was purchased, the primary marketing target was snow birds from Canada and the United States. Over the years, the B&B has become well recognized by tourists as a result of continuing good reviews and the fact Casa De Leyendas is almost always number one in searches done on Google and . You can find it at

As a result, the owners need to spend very little on advertising. The owners over the years have also sponsored several events at the B&B, so it well known by the local ex-pats and snowbirds. This continues to generate a significant amount of business for the B&B.

With the advent of the new highway from Durango, Mazatlan has become a destination for Mexican Nationals. It is now the #2 beach destination for Mexican Nationals and this segment of the business has yet to be tapped. The owners currently close down the B&B business for the most part of the summer, except for some occasional room nights for Americans and Canadians driving through Mexico. Summer demand from Mexican Nationals is there, but the owners have been unwilling to make it a full time job. As a result, there is the potential to significantly increase earnings for a future owner wanting to keep the B&B open 12 months each year.

The B&B and Restaurant operation nets after operating expenses an average of about $90,000 annually. The net includes the owners board, room, medical and other expenses. There is additional income generated from the sale of items in our gift shop and through commissions earned through booking tours and other events through local vendors.
The minimum wage in Mazatlan is about $5 USD per day. However, experienced maids and cooks will earn closer to $15 per day. In addition, there is about a 33% add on for Mexican social security, health care and other retirement expenses. The labor laws in Mexico require severance to be paid to any employee that is terminated.

Real estate taxes on the property are currently less than $800 USD per year. Since the property is owned fee simple by the corporation, there are no Fideicomiso. For a property of this size, a Fideicomiso fee would be approximately $1,200 USD per year.

The Building and Property
The property address is Venustiano Carranza #4 - Centro Historico - Mazatlan, Sinaloa, 82000, Mexico. It is located at the corner of Venustiano Carranza and Sixto Osuna

The house, the terazza areas (Patios) and courtyard total about 10,000 square feet. The B&B consists of 6 bedrooms each with its own full baths and decorated very tastefully. There is a 7th bedroom that also includes its own living area and office that the owners use. This could easily be converted into another income producing unit. On top of the roof, the owners have put in a large patio area along with a full kitchen and bath. With a minimal amount of work, it could be enclose to create a very large suite for either the new owners or another income producing unit. The front terazza on the upper floor was constructed with extra support to handle the addition of 2 to 3 more rooms, but currently serves as a patio area for the guests. The kitchen was originally designed to be a commercial grade kitchen and in 2012, the owners decided to open Macaws to compliment the B&B. With its liquor license, many B&B guests decide to drink and eat at Macaws.
Pictures of the rooms and the B&B can be viewed in the video link previously presented and also on the . The following drawings show the layout of the entire building from the first floor (Planta Baja) to the second floor (Planta Alta) to the roof top (Planta Azotea). All names are in Spanish and the area measurements are in square meters.

Contact Information
For more information, email and
You can also call: Glenn and Sharon Sorrie at --(Phone number)-- or Mike Morris at --(Phone number)--

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