Raul O'Farrill / otptrust.com

Major

Forces

Rocky

Point

Real

Estate:

Raul

O'Farrill

From The Rocky Point Real Estate Guide

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As Rocky Point has evolved into Mexico's most vibrant real estate market, a great transformation has taken place in the way that Americans and Canadians own property in our community. Raul O'Farrill ranks among the most important forces in this radical transformation and improvement of our communities' legal practices and ownership verification mechanisms, as well as being a driving force behind the creation of innovative financing mechanisms, the evolution of development practices, and the elevation of sales standards that govern real estate transactions in Rocky Point.

How and why this prominent Mexican attorney and visionary business man came to play such a central role in our real estate community is a testament to the strength of our marketplace, and a sure sign that Rocky Point's future growth rests upon a solid foundation of secure ownership mechanisms, modern legal and business practices, and an enlightened -- and sustainable -- development vision.

Born in Mexico City on October 3rd, 1963, Raul comes from a prominent Irish-Mexican family proud of their long roots in this country. His great grandfather, Stephen O'Farrill, emigrated to Mexico from Ireland in 1846, at the start of the Great Potato Famine which lasted from 1845 until 1849, killed over 12% of Ireland's population, and caused nearly 30% of Ireland's people to emigrate to other countries. Raul relates the story.

"My great grand father left Ireland in early 1846. He was -- quite literally -- starving. I don't think that was a very hard decision! When he arrived in New York, the United States immediately tried to draft him into the Army. The United States was at war with Mexico -- the war was over the United States annexation of Texas -- and the United States government obligated immigrants to join the Army to fight Mexico. That was his welcome party to New York City! In those days Mexico was a very young country, having only achieved independence from Spain in 1821. The Mexican government put out the word that if an able-bodied man wanted to join Mexico's Army that upon discharge he would receive citizenship, and land. As Mexico was a Catholic country where everything revolved around religion, party and drinks, I don't think that decision was very hard either! My great grandfather with around other 100 "Patricios" chose Mexico and defended the Mexican Flag -- which is very similar to the Irish one!"

Having survived the Mexican-American War, Stephen (Esteban) O'Farrill settled on the land granted him -- located in Puebla State -- where he married and had four daughters and two sons. One of the sons, Romulo O'Farrill Sr. -- Raul's mentor and best friend -- became a media magnate, owning national newspapers, banks, and radio stations throughout Mexico. He was the father of Spanish television and owner of the first television station in Latin America, Televisa, which rapidly became the largest Spanish language broadcasting system in the world, and ranked as the 3rd largest television network worldwide by the 1980's. Romulo had passion for cars, owned Packard and Hillman factories in Puebla, and introduced Volkswagen -- cars we still see daily in the Americas -- to Mexico! He was also the founder -- and a competitor in -- the world-famous Panamerican automotive race inaugurated in the 1950's.

Raul has fond memories of Romulo saying, "As busy and successful as he was, he always remained humble and very kind. He was very well loved, not only within our family, but by countless people who knew him, his employees, and thousands of people who benefit from his philanthropic foundation." Romulo O'Farrill Sr. Boulevard in Mexico City is named in his honor.

Raul's mother, Noemi Lozano, was born in Berlin in the Mexican Embassy during the WWII at virtually the moment when Mexico allied with the United States and declared war on Germany. She was the youngest war prisoner of the Nazi government and was imprisoned throughout the war with her parents, General Armando Lozano and Noemi Molina, daughter of the famous Henequen Haciendas owners of Yucatan State. She met Raul's father, Raul O'Farrill Sr., in 1959 and they were married in 1961. Raul's father was a senior executive for General Electric Company for more than 25 years. His responsibilities were vast, as he was the sole sales person assigned to serve the Mexican Government market, including not only the Federal government, but State and Municipal governments, as well as private corporations. He took early retirement in 1983 currently resides with his wife in Phoenix, Arizona.

Raul has a very internationalist perspective, a world-view that began taking shape when he was quite young. "When I was 18 I left home to live in Europe where I spent almost two years living in Pool, Dorset County, England, improving my English, becoming fluent in Italian, and meeting people from all around Europe. I then traveled all the Western countries -- and even some Communist countries like Hungary -- which was a landmark in my life. I learned how to value -- and learn from -- different cultures." Returning to Mexico, Raul immediately began his higher education, which is extensive and international. With degrees granted from the Centro Universitario Mexico, Universidad Iberoamericana, Universidad Panamericana and University of California, Berkeley, Raul ranks among Mexico's most widely educated attorneys. He particularly values his time at Berkeley saying, "Berkeley was, of course, the most different of these schools for me, and my first long-term exposure to life in the United States. I learned quite a lot there, not just the academics related to American law, but the cultural aspects of American life."

Raul founded his law firm, O'Farrill & Associates, in 1985 in Mexico City, but rapidly became interested the legal aspects of Mexican coastal property ownership by non-Mexicans, and in serving an international clientèle. "In the 80's and early 90's many of the mechanisms and tools that non-Mexicans used to acquire coastal properties were still fairly primitive. While most of the foundations for secure ownership were in place -- the bank trust mechanism created by the Foreign Investment Law of 1972 being the most obvious example -- the practical application and use of the mechanisms was usually quite flawed. As I gathered greater experience working with non-Mexican property owners and investors these flaws became more and more obvious. Some of the flaws were basically technical: inaccurate or incomplete translation of documents, for example. Some were procedural: lack of proper -- American-style -- title verification; efficient trust processing; the unfamiliarity of most Mexican law firms with the legal and tax consequences of choices made in Mexico by their non-Mexican clients in their home countries; the resistance, inability or unwillingness of many Mexican law firms and trust processors to use United States-based escrow mechanisms; and, really most importantly, a lack of cultural sensitivity on the part of most Mexican law firms and trust processors to the concerns of their non-Mexican clients. All of this probably stood out more for me because of the time that I'd spent outside Mexico. Those types of first-hand experiences of other cultures broadens a person, and makes you aware of the needs and concerns of others. It also made me aware of the great opportunity that existed to serve non-Mexicans who wished to invest in Mexico in a way that they weren't being served."

In 1997 Raul -- along with his partner Carlos Dávalos, who Raul refers to as his "best friend and adoptive family member" -- decided to make O'Farrill & Associates a fully bi-national firm, and opened offices in Phoenix. Raul credits Carlos for strongly supporting the opening and ongoing operations of the Phoenix office saying, "Carlos and I are very close, I feel very blessed to have him as a partner. We were definitely on the same page about making O&A a bi-national firm. He has a very international background as well, having gone to school in Maine and lived in the United States for many years. And he's really done the hard work of building the Phoenix operation. I mean, he lives there full-time!" Raul views this move -- which has not been duplicated by any other Sonoran law firm -- as an obvious outreach to the firm's clients. "Why should our clients be forced to travel to Rock Point for every little thing? Frankly, I find that customer service attitude bizarre. Many of our clients are Americans -- a substantial percentage of them Arizonans -- or Canadians who travel to Rocky Point through Phoenix. Why shouldn't we have offices in Phoenix? I think the real question is, why don't other Mexican law firms who purport to serve non-Mexican clients have offices in the United States? I can imagine having offices in Montreal. I love Montreal."

In 2000 Raul further broadened the international scope of his legal knowledge by being licensed by the Supreme Court of the State of Arizona as a Foreign Legal Consultant, becoming the first Mexican attorney to do so. It is noteworthy that the second Mexican attorney to achieve this accreditation -- in 2006 -- is Ana Cecilia Dabbs, O'Farrill & Associates Real Estate Senior Associate Attorney. When asked why he believes more Mexican attorneys haven't pursued accreditation in the United States Raul answers, "That's an interesting question, and I suppose it would better be asked of those who haven't chosen to get accreditation in the United States. I do know that Foreign Legal Consultant accreditation is a lot of work. There is a vast amount of information that you have to absorb about American law, and you have to demonstrate to the court very highly developed legal skills in your native country, in our case, Mexico. This certification isn't taken lightly by the State of Arizona: they've basically said to their constituents that you're expert in your native countries' law, and qualified to advise Americans about decisions that may have legal ramifications in America. And these skills are also relevant for our Canadian clients because so many of them choose to own property through United States LLC's. It's a very serious responsibility, and you have to be prepared to assume professional liability in the United States as well, which I think may be an impediment to some Mexican attorneys. Cecilia and I were happy to work to learn everything necessary to get these certifications because our firm is fully committed to its American and Canadian clients. But you have to have a real long-term commitment to serving those clients to do the work that it takes to get accredited."

Raul's was a pioneer in the evolution of Rocky Point's legal culture, and has played a major role in resolving difficult title disputes and creating proper legal structures for irregular subdivisions. But his role in the evolution of ownership mechanisms that serve non-Mexican homeowner-investors in Rocky Point extends far beyond the legal services that O'Farrill & Associates provides. Another of his contributions has been in his role as Founder of OTP Trust, his bi-national title-verification and trust processing firm. OTP Trust's founding flowed from the same commitment to the security of non-Mexicans investments that underpin the work of O'Farrill & Associates.

"When we first began O'Farrill & Associates operations in Rocky Point it was obvious to us that much of the title verification and trust processing work being done was sub-standard -- on more than one level. First, it was simply inefficient: transactions took to long to consummate. Secondly, we felt that some of what passed for title verification was negligent, and placed our client's ownership rights in jeopardy. Some of this was probably an inevitable legacy of the early "Wild West" days of Rocky Point real estate, but it was clear to Carlos and I that we couldn't in good conscience advise our clients to make major investments in Rocky Point real estate without better title verification and trust processing. No single group of choices a homeowner-investor makes when purchasing real estate -- and this is true in the United States and Canada as well -- is more important than the choices related to all aspects of the title to the property. This is the foundation of secure ownership, and Carlos and I were committed to insuring that foundation was sound. That is the genesis of OTPs existence."

The same cultural sensitivity and customer service commitment that Raul has made a hallmark of O'Farrill & Associates business practices extend to the activities of OTP Trust. "Truly bi-national firms like OTP are committed to understanding our client's cultures and concerns, not to trying to make clients "get used to" the Mexican way of doing business. We always strive to provide our clients with documentation and explanation that completely eliminate any uncertainty they may have regarding the security of their investment. For example, we are aware that it is very important for most American's and Canadians -- all those not fluent in Spanish! -- that they receive accurate and complete translations of all the documents related to their real estate purchase. I had to learn English -- and study in English -- before I was fully proficient with the language, so I am no stranger to looking at a pile of papers that are, at least to a great degree, meaningless to me! This is really the situation that many North American buyers of Mexican real estate find themselves in, especially if they work directly with a bank or Notario. There is this pile of papers, what do they mean? There is a great deal of uncertainty in being in that position, and this is what we strive to eliminate for our clients. Explanation is the second part of this equation, and that goes far beyond simple translation. I have been involved in hundreds of international real estate transactions in the past 22 years, and have purchased real estate in the United States both for my clients and for myself. I know what buying property in other countries feels like! We are committed to making certain that our clients fully understand their transaction, and are comfortable with every aspect of it."

As would be expected of a man as widely educated as Raul, he is a big believer in the importance and transformative power of education, and serves as Vice President of Education for AMPI ( Asociación Mexicana de Profesionales Inmobiliarios), Mexico's oldest association of real estate professionals. "Education is the key to ethical real estate practice, and is the soundest assurance that our communities' non-Mexican homeowner-investors will have a perfect experience of Mexican property ownership. Ongoing professional education is central to AMPIs mission, and I feel proud of each of the brokers and agents I have had the blessing to teach, train, and learn from. It is worthwhile noting that every member of AMPI is also a member of The National Association of Realtors, NAR, in the United States. I am certain -- from my experience over more than twenty years in the majority of major tourist markets in Mexico -- that our AMPI agents are the best trained, best educated, sales force dedicated to serving non-Mexicans not only in Rocky Point, but in all of Mexico!"

Raul has continued to pioneer innovative investment structures and strategies including: creating secure mechanisms that allow the use of funds from self-directed IRAs for purposes of Mexican coastal real estate investment; a new project that will facilitate non-Mexican's financed purchases of Mexican real estate with loans that are designed to be interest-free for ten years; and his close association with the noted Rocky Point investment specialist Heidi Wosak in her innovative new full-service real estate company specializing in marketing innovative investment programs such as Puerto Peñasco Real Estate and Yacht Clubs, which has brought a newly affordable ownership-model for coastal real estate to our community. He has also developed the only corporate group in Rocky Point that integrates all aspects of real estate investment in Mexico, including property selection, title verification, trust processing, real estate developing services, as well as legal and marketing services.

Raul activities extend far beyond the law, real estate finance, and title and trust issues. Because of his involvement with developments either operated or owned by St. James Gate or St. Charbel Holdings he is also an important piece of Rocky Point's newly formed developers association -- ADITUR PP -- which was just admitted to the National Association Of Tourism Developers.

Raul is highly bullish on ADITUR PPs future contribution to our community saying, "Our mission is to help guide the development of Rocky Point, with a special emphasis on protecting buyer investment by promoting safe and sustainable market development; representing community interests; and cooperating with the government of the state of Sonora in efforts that will insure that Rocky Point becomes the largest, best, and more important tourism destination in Mexico. We are honored to have Reyel Taylor of Sandy Beach Resorts as our first President, Mario Mendez of Las Palomas as our Secretary, and Miguel Guevara of Puerta Privada as our Treasurer -- three true pioneers and seminal architects of Modern Rocky Point! We already have important accomplishments: one of our organizations first actions was to reach agreement with Aero Litoral to inaugurate scheduled commercial air service from Rocky Point to Los Angeles International Airport, Las Vegas, and Hermosillo. While we all look forward to the opening of the new international airport, thanks to ADITUR PP Rocky Point has international air service now!"

Raul is also highly bullish on Rocky Point's future. "I believe that Rocky Point is the model upon which all future Mexican coastal development will be based. And, in fact, for the past ten years that has already proved to be the case. What has been pioneered in Rocky Point -- especially with regard to the security, transparency, and user-friendliness of the real estate culture for the non-Mexican homeowner-investor -- has become THE model for all of Mexico. I am proud to be an adoptive Rocky Pointer, and feel privileged to be part of the exciting evolution of this vibrant community, the home of brave and intelligent entrepreneurs. I found in this place a fertile land where the desert meets the ocean. Rocky Point is everything I was looking for, and more than I could ever dream."

Raul is the father of, as he says proudly, "two beautiful and excellent children", fourteen year old Diego, and eleven year old Luz Elena (Luzy). He is a full-time resident and homeowner in Rocky Point. We are lucky to have him!