For many years now at Gap Investments, we have been sending out investor alerts to our lenders once we have completed all of our due diligence.
Our due diligence includes:
- Checking the National Registry for any legal issues on the property
- Proprietary valuation of the property
- Verifying that applicable taxes are up to date
- Verifying the status of home insurance
- Site visit and inspection: to see the quality of construction, and if there are any major maintenance issues
- and quite a bit more.
When an investor alert goes out, it goes by a uniquely automated mail list and can take up to two hours. That means that someone is receiving the alert before you but doesn’t mean that they have replied to it sooner than you have. Always click if you are interested even if it is the next day or even longer.
Many times people have clicked the “I am interested in this loan“ button just to get some more information. Depending on their inquiries, they may pursue the loan or may not.
Are Your Funds In Costa Rica?
The second major issue that arises, is the ability to have funds available for this loan. As foreigners, we all know that bringing in large amounts of money into Costa Rica is a mind-boggling experience! We have had people try for longer than 30 days. Often, borrowers would prefer not to wait that long for a variety of reasons, and ask us to obtain another lender that has their money in the country and ready to go. We then go to the next investor on the list who indicated their interest in the loan.
NOTE: Not every loan makes it to the investor alert list! If someone were to tell us that they have just brought in $500,000 and would like it out as fast as possible as well and give us some directives such as: no single loan over $150,000, beaches are great locations, Airbnb units… things of that nature, then we have a profile created and would call that person first when a loan that fits their criteria becomes available.
Always feel free to contact us with updates to your status regarding investment amounts and/or timing of having funds available for upcoming loans. We try our best to accommodate everyone.
Loans literally come in all shapes and sizes, so the better understanding of what we have to work with, the easier it will be to find you a great loan.
Many of our lenders that have done many loans with us over the years are at the point of going by the data and pictures provided. We also have detailed information that we provide to the lenders that are interested in a loan that is not on the investor alerts.
An example of that would be the booking reservations of an Airbnb for the last year. We like to see how well the business is doing. That being said, we are an asset-based lender and not a bank. We will not ask for an income certification, local credit check, or check what is owed on a vehicle for example. This is a little too intrusive for our purposes and lending model.
To summarize the investor alert process: We show you the asset, our valuation (give a firesale scenario), loan amount, loan term (maturity) and interest rate.
“How are you going to pay back the loan when it is due?” is a question we ask on our application and during the site visit. We trust the borrower, but, then check and verify! As you can now see, the investor alert is just one of many ways to fund a loan.
Contact us now to earn great returns in Costa Rica today!