How to Secure Loans in Costa Rica: A Comprehensive Guide by Gap Investments

Securing a loan in Costa Rica can be challenging, especially for foreign investors. The lack of flexibility in the national banking system makes private loans a viable option for borrowers. At Gap Investments, we offer consulting services for private investors seeking to increase their assets while lending to verified borrowers. This article will discuss how we secure loans in Costa Rica and the steps involved in the process.

Consulting Services

Gap Investments specializes in consulting services in investing and knows how to secure a loan in Costa Rica to ensure you make safe and consistent returns! A growing economy presents many lucrative opportunities for local and foreign investors. Due to the lack of flexibility in the national bank system, there is still an important market for secure loans in Costa Rica. Many borrowers seek “bridge capital” to start lucrative residential or other construction projects or get cash from their homes (equity release).

What does Gap Investments do to secure loans in Costa Rica?

1. We advertise for loans;
2. We advertise for borrowers;
3. Our system vets the loans initially with our Loan Request Form (pre-application);
4. We check the National Registry for any legal issues or other liens on the property;
5. We evaluate the exact location of the property;
6. Our analyst researches comparables in the area to see if the loan request and valuation stated on the pre-application are reasonable;
7. Once we establish the loan is good enough for consideration, we request the entire application;
8. We verify that all the taxes are up to date, including HOA fees when applicable;
9. Our consultants follow up with a phone call to verify that the information is correct and establish the borrower’s ability to pay off the loan;
10. We perform a site visit and take current, up-to-date photos;
11. Our analyst then gives a final evaluation;
12. We send the loan request out to our private lenders and determine who will be funding the loan;
13. We work with a borrower to make sure there is insurance on the property (if needed);
14. Once a lender says “yes,” we generate a draft term sheet;
15. We send it to the lawyer to verify and prepare the draft for the protocol book;
16. We receive the documents and send them to the lender and borrower for review;
17. Any minor tweaks or changes are made at the lender’s or borrower’s behest. Then, we sent a final draft of the term sheet to all parties;
18. We coordinate the signing with the lender, borrower, lawyer, and often any other party who needs to be paid off (and their lawyer);
19. We meet at an agreed-upon location to sign the protocol book. The lender distributes the funds by SINPE (local bank transfer) or certified checks;
20. Now that the loan is in place, we check the National Registry within 30 days to ensure the loan is recorded correctly;
21. From here, we monitor and record the monthly payments.
    

All this is just for standard secure loans in Costa Rica. Guaranteed trusts or development projects are more complicated and time-consuming.

Conclusion

Securing a loan in Costa Rica can be complicated, but Gap Investments streamlines the process for private investors seeking secure loans. Our comprehensive vetting process ensures that borrowers are verified, and the loan is a safe investment. We work closely with all parties to ensure a smooth and successful loan transaction.

-Written by Glenn Tellier (Founder of Grupo Gap)

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Frequently Asked Questions

What types of loans do Gap Investments offer?

Gap Investments offers secure loans in Costa Rica for borrowers who need “bridge capital” for lucrative residential or other construction projects or to get cash from their homes through a mortgage or guaranty trust.

Who can apply for a loan with Gap Investments?

Borrowers who can be verified and have a property with no legal issues or other liens can apply for a loan with Gap Investments.

How do Gap Investments verify borrowers and properties?

Gap Investments vets the loans initially with a Loan Request Form, checks the National Registry for any legal issues or other liens on the property, evaluates the exact location of the property, researches comparables in the area, performs a site visit, and takes up-to-date photos.

How does Gap Investments evaluate loan requests?

Gap Investments evaluates loan requests by verifying that all taxes are up-to-date, following up with a phone call to verify borrower information and ability to pay off the loan, and having an analyst give a final evaluation.

Who funds the loans offered by Gap Investments?

Private investors fund the loans offered by Gap Investments.

What is the loan application process like with Gap Investments?

After initial vetting and evaluation, Gap Investments sends loan requests out to private lenders and coordinates the signing of the term sheet with the lender, borrower, lawyer, and other parties involved.

How long does it take to secure a loan through Gap Investments?

The time it takes to secure a loan through Gap Investments depends on the complexity of the loan request. Still, guaranteed trusts or development projects are typically more time-consuming than standard secure loans.

How does Gap Investments monitor and record loan payments?

Gap Investments monitors and records loan payments every month after the loan has been secured.

Article by Glenn Tellier (Founder of CRIE and Grupo Gap)