Here in this sunny climate (and in similar locales along the Mexican border), a great many Americans have chosen to spend their golden years. Besides the climate, a booming economy, and modern facilities, this city and its surroundings also boast real estate prices that are a fraction of what homes would cost in the U.S.

That's not to say that prices are inexpensive in Cabo. A nice condo with an ocean view and access to the beach can easily go from between $250,000 to $500,000. Single family homes in excess of several million dollars are not unusual. But, it's all relative. Similar properties in similar locations in California could have triple the price tag.

My friend wasn't worried about buying a property. What he was concerned about was eventually selling. Since prices are going up in Cabo almost as fast as they are in places in the U.S., there was potential for profit. And even if there was no profit, further down the line he might want to move back to the States.

However, unlike in the U.S., the typical real estate commission south of the border tends to be higher, often around 10 percent. Agents explain this is due to the need to deal with the complexities of handling transactions in two currencies (pesos and dollars) in a foreign country.

But, my friend pointed out, he had recently sold his home in Los Angeles "by owner." Why couldn't he do the same thing in Mexico?

Having had little experience with buying and selling real estate in Mexico, I contacted a number of agents who were quick to point out the difficulties that their companies would solve. They emphasized that sellers should only use agents. I'm not sure that's always necessary.

The biggest difficulty is not likely to be the paperwork (help is available from title insurance and escrow companies here in the U.S. and Mexico - the biggest ones have branches in both countries) nor the currency exchange nor the trust (see below) that's required--any big Mexican bank can handle it. Rather, it's likely to be convincing a buyer to tackle the purchase without the services of an agent. Unless that buyer has bought in Mexico before, he or she is likely to be skittish... and with good reason.

One answer, of course, is to use the services of lawyers, one in the states and one in Mexico. But, that can add up in costs pretty quickly. Another is to become so immersed in foreign land rules, that you impress the buyer enough to trust you. Whatever your choice, here are some pointers for selling (and buying) property "by owner" in Mexico:

• Any property 30 miles along the Mexican coastline is in a "restricted zone."
• Foreigners can own this property only through a "fideicomiso" or trust operated through a bank.
• You need a permit to set up the trust.
• Financing is usually handled by the seller, or buyers pay cash.
• When selling, you may "assign" your rights to the trust, but closing and recording can be tricky and may require the aid of a "notario" or government appointed lawyer.
• There are lots of hidden rules, so be careful.
• It helps if you can speak, read, and write Spanish.