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How We Evaluate Properties For Loans

How It Works

As you can see from our Available Loans page, Gap puts in a great deal of work in assessing and presenting equity loan opportunities to our investors. We pride ourselves in providing you with a clear picture of how we evaluate properties for loans and why it is a great investment opportunity.

Of the many loan requests we receive every day, only a few of them merit this kind of attention. This is because of our standards for what we want to present to our investors. Of course, as an investor, the choice to invest in a loan or not is always up to you.

Our team takes the photos you see in the Investor Alerts during the site visit of the property. In addition, site visits are necessary for us to assess the property and the prospective borrower in person.

The Due Diligence Check

Before arranging a site visit, we perform a due diligence check for the collateral property. Below are the following steps:

  1. Checking the land survey (Plano cadastro). With the Plano for the property, we can look it up in the National Registry, pinpoint its location and see its viability as a loan opportunity.
  2. Checking the title. We then go through the property’s title document in the National Registry to ensure no surprises. For example,  restrictions, liens, lawsuits that would impede the loan from being viable.
  3. Getting initial land and construction values. We use a combination of government-supplied and private data sources to get an accurate market value for the land and the construction based on a set of characteristics that we ask from the borrower.
  4. Initial checks on the borrower. We do some basic checks on the borrower based on publicly available data. We check the borrower’s status with the tax department (Tributación), Social Security and Health Care Program (Caja), the municipality, and others. If a corporation is involved, we verify that it is up to date with the yearly corporate tax and required declarations. We also ensured the company was not dissolved or merged with another entity.

The Site Visit

Once we complete these checks and assess the property’s market viability, we arrange a site visit with the prospective borrower. If our team likes what we see during the site visit, we inform our investors by email with Investor Alerts, and we post the loan opportunity on our website and social media accounts.


For more information about investing in loans in Costa Rica, contact us now by using the contact form



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