The right location for loans

Choosing the right locations for making loans is crucial, just as in purchasing real estate. Location is a significant factor in our value on our loans at Gap Investments.

Loans in the GAM – Gran Área Metropolitana

For example, Many investors only want to do loans in the GAM, the Greater Metropolitan Area of San José, Costa Rica. One reason is that many investors only really know that area well.

The GAM has many obvious potentials because it is the economic engine that drives Costa Rica in services and manufacturing. What makes the GAM an obvious safe investment is that the rental and resale potential is more attractive if a lender has to take possession.

Loans on the Beaches

Costa Rica’s beaches can be a great place to invest, as they can be pretty resilient regardless of the local economy. Just look at the tourist boom that is happening. Teletica, the national TV station, announced record tourist numbers expected this year and estimated to be 3.5 million tourists! That is well over half the population!

This tourism bonanza offers opportunities in the hospitality industry for loans (such as Airbnb units) as they continually expand. We have done quite a few of these for one to three-year terms, and they have worked out very successfully. As part of our extensive due diligence, we look at their upcoming bookings and assess their potential before approving a loan.

To be clear, not all tourist areas are the same. Places like Santa Teresa, Tamarindo, Jacó, and Quepos are the obvious favorites. However, other areas such as Nosara house the infrastructure (food, supplies, construction materials, etc.) and workers that service many beach communities.

You may drive through these towns on your way to the beaches without realizing that these many towns are good opportunities for loans as well. They are growing to meet the ever-growing tourism industry’s needs benefiting Costa Rica.

As part of our approval process, we are always informed of why a borrower needs the loan. Nothing is better to hear than: “We are expanding due to our success!”

Gap Investments Assesses Locations

Because we visit many places during our site visits, we continuously perform surveys of how well that particular area is doing. Realtors, restaurant owners, lawyers, and other professionals provide us with a wealth of timely, helpful information on the site.

Not every area along the coast is killing, but many are. The differences can be attributed to infrastructure deficiencies such as accessibility or even what beaches offer.

Are these beaches great for surfing? Are they clean? What are the amenities like? Are there any particular attractions? These are some of the factors we look into.

Secure Loans with Gap Investments

We are in business to provide safe, secure loans and provide a valuable service to many people that are successfully trying to grow quickly — without having to wait on the glacial movement of local banks.

For more information about investing in loans in Costa Rica, whether in the GAM or on the beach, contact us now by using the contact form or directly at +506-4001-6413 (mobile / WhatsApp).