By EUGENIA B. SCHRAA

CRIMSON STAFF WRITER

Three years ago, Joel “Joe” Espinoza wrote his final paper for a Harvard Extension School economic class about Mexican restaurants in New England, concluding that there is a potentially lucrative market for authentic fare in the region.

Short on cash, Espinoza decided to test his theory. And so he put his masters degree work in political science on hold, sold his Mercedes and put the money into opening Real Taco in Downtown Boston.

Two and a half years later, Real Taco has done so well that he is now ready to open in Harvard Square. By September, the old Bruegger’s Bagels location on Mt. Auburn St. will be filled with the aromas of nachos, refried beans and jalapeños.

“It’s a terrific place,” says John DiGiovanni, president of Trinity Properties, which leases the space. DiGiovanni adds that he had turned down more lucrative offers for the space from cell phone shops.

Espinoza says Real Taco will offer quality food for an affordable price.

“This is like what you’d get at an upscale restaurant, but it only costs $2.95,” exclaims Espinoza, holding up a spicy chicken taco just cooked up in his Boston restaurant. “We don’t even charge for extras.”

In the Square, the 32-year-old Espinoza is after the student population, which he plans to court with cheap prices—the lunch menu will range from $2.95 to $5.95—and late hours: Real Taco will close at midnight Sunday through Wednesday, and at 2 a.m. Thursday through Saturday.

Espinoza says the design will conjure up images of lazy hot days south of the border—even in the Massachusetts winter. There will be a small outdoor section, which will be heated with enormous space heaters when the temperatures drop. Real Taco will also have seating space in the central plaza of the Garage.

Espinoza says he also wants his restaurant to be convenient. It will have an express line at the front, and a Real Taco credit card will be available for swift purchases.

There may one day be beer, wine and sangria, but not for at least six months.

For those perpetually hungry for Mexican food, there will be breakfast every day starting at 7 a.m., when ham, egg and chorizo sausage burritos will be served, along with café de olla, which is the only kind of coffee Espinoza drinks.

Espinoza hasn’t forgotten about dessert either, which will be served during dinner hours. A few of the dishes available will be a Mexican pudding called arroz con leche, flan, and cookies filled with cajeta, a caramel spread made from goat’s milk.

Espinoza takes considerable pride in the authenticity of his recipes, ingredients and cooking methods. Scoffing at rivals such as Casa Mexico, Anna’s Taqueria, Boca Grande and especially Border Cafe, where he once worked as a waiter, he says New Englanders have no idea what real Mexican food is like.