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Is Gap Investments safe?

What is GAP Investments?

Gap Investments is a secure investment platform that offers a variety of features to help you grow your money safely and soundly. We offer various consulting services regarding your investment options so that you can find the right one that fits your needs. With Gap Investments advisors, you can rest assured that your money is in good hands! We receive many questions regarding investments daily, including ” Is Gap Investments safe? Or is it another Ponzi scheme?”


First of all, what is a Ponzi Scheme?

A Ponzi scheme is an investment fraud that promises high returns with little or no risk. Ponzi schemes typically involve promising investors unrealistic or unsubstantiated returns on investments. These schemes rely on a constant flow of new investor money to keep them going, as they do not have any legitimate underlying investment strategy. Ponzi schemes often collapse when they cannot attract new investors, and many people can lose a great deal of money.

The Ponzi scheme is arguably the most effective and popular way criminals pull money from hard-working people. It is named after Charles Ponzi, a con man who, in the 1920s, created several pyramid schemes that managed to pull over $20 million from his victims. Bernie Madoff managed to get $65 billion from his investors after 30 years.

Almost everyone knows about Bernie Madoff, but how many have heard of the Villalobos brothers? For about 20 years, Enrique and Oswaldo Villalobos were legendary in Costa Rica, paying clients up to 3.5% interest in cash per month. Called “The Brothers Fund,” they defrauded 6,400 American and Canadian investors out of around half a billion dollars, making it one of the biggest Ponzi schemes in Central America.

The scheme itself is simple. It pulls in those who believe that it will work, only to find out that their money is gone too late. It is a two-step process that starts with offering an attractive investment opportunity with a return that is too good to believe, yet many will still invest in these schemes. The second part is that there actually is no investing, only taking money from those new to the scheme and giving part of their investment funds to the original investors to keep them on board. At some point, it will all collapse because insufficient money can continuously be raised to pay off the investors. Madoff’s Ponzi scheme might have lasted to this day had the financial crisis of 2007 not arisen to deplete his ability to pay off the original investors. Despite all the attention drawn to such schemes, they are still being used today.


How to Spot a Ponzi Scheme?

Unusually High Returns:

The higher the returns (anywhere from 30% to 100% or more per year), the greater the investment risk.

Investments are risk-free and are guaranteed:

There is no such thing as a risk-free or guaranteed return on any investment. Every investment has risks, and if you don’t know what they are, you shouldn’t be investing.  

You can’t understand the investment:

If you cannot understand the business investment explained to you, you should avoid investing. Reliable business investments are straightforward and easily understood for the most part. Complexity is an easy way to mask a scam.  

If an investment sounds too good to be true, then it probably is:

Be sure to thoroughly check out the person and company you are dealing with. You can search for information about the person trying to sell you on this investment opportunity. If they do not exist or have a criminal record, it is probably not good to invest.

While it’s easy to say the fault squarely lies on the perpetrators behind a Ponzi scheme, you only have yourself to blame if you invest in one. Be skeptical of too good investments to be true, and always do your due diligence before investing in anything.


So to answer the question:

Is Gap Investments just another Ponzi Scheme? – No, it’s not!

Gap Investments specializes in consulting services regarding collateral-based real estate equity loans. These loans fill a need for funding when there isn’t time to obtain conventional financing or banks won’t lend for whatever reason. These types of loans are sometimes called private money loans, private equity loans, gap loans, or bridge loans.

Is it safe to work with Gap Investments? – Yes!

Investors can make safe, consistent returns on their investment every month by lending on home equity in Costa Rica, secured by a mortgage lien.

Gap Investments is NOT an investment fund.

You are lending to a specific borrower in Costa Rica. All mortgage contracts are between the borrower and the lender. The strength of Gap Investments consultants is in identifying high-value loans, evaluating the risk, presenting them to potential investors, and closing the loan. With a significant increase in borrowers unable to borrow from Costa Rican banks and looking at other borrowing options, this current financial climate provides enterprising private lenders with the opportunity to finance at higher interest rates. Private lenders who work with Gap Investments generally employ loan terms of 1 to 3 years for home equity loans. Collateral is in the form of the borrower’s property, typically through a mortgage lien.


Gap Investments operates by:

  1. Providing full transparency for its operations;
  2. Requiring an excellent loan-to-value ratio (generally under 50% of appraised value) disclosed to lenders;
  3. Making sure investors are protected by a mortgage lien;
  4. Being adequately regulated by the laws of Costa Rica;
  5. Choosing reputable attorneys, accountants, title insurance companies, banks, appraisers, surveyors, and developers.


The Risk:

The risk of lending on home equity loans is relatively low. Private lenders who work with Gap Investments only lend up to about 50% of the appraised value of a property. Since the loan is a debt against the property, if the borrower cannot repay, the lender can choose to force the sale of the property to cover the debt. Gap Investments will help assist the lender in foreclosure proceedings on the property. The lender can even opt to purchase the property with the funds.


-Co-written by Lawsen Parker (Operations Manager) and Glenn Tellier (Founder of Grupo Gap)


Become an investor with Gap Investments today!

Gap Investments has several projects that need funding. You can check the available loans HERE.

Make safe, consistent returns on your investment every month by lending on home equity secured by a mortgage lien.

Contact us to get started TODAY!




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This Post Has 2 Comments

  1. Interested in written details in English. Also where is your office located? What is rate of return on investment? How long has the business been profitable?

    1. Hello Mr. MacArthur

      Thank you for your inquiry.

      You will find detailed information about investing with Gap Investments here:

      That page also contains a link to our previously processed loans:

      We are located in Costa Rica, specifically in Escazú, San José:

      The ROI on an investment varies for each loan. Our loans have interest rates between 10% – 18%. That interest rate range depends on the risk, amount of collateral and duration of the loan. The terms of our loans range from 1 – 3 years.

      We invite you to read our FAQ section here:

      In regards to your last question, Gap Investments has been brokering equity loans in Costa Rica since 2008.

      You are welcome to contact us with additional questions you may have, via our contact form:

      Gap Investments

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