As you can see from our Available Loans page, Grupo 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 the loan 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.
The photos you see in the Investor Alerts are taken by our team during the site visit of the property. The site visits are necessary for us to assess not only the property but the prospective borrower in person.
Before we arrange a site visit, however, we perform a due diligence check for the collateral property which involves the following steps:
- Checking the plano catastro (land survey). 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.
- Checking the title. We then go through the property’s title document in the National Registry to ensure that there are no surprises, such as restrictions, liens, lawsuits that would impede the loan from being viable.
- 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.
- Initial checks on the borrower. We do some basic checks on the borrower based on publicly available data, such as the borrower’s status with the tax department (Tributación), CCSS, the municipality and others. If there is a corporation involved, we verify that it is up to date with the yearly corporate tax and required declarations. We also make sure the company was not dissolved or merged with another entity.
Once we complete this 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 web site and social media accounts.
For more information about investing in loans in Costa Rica, contact us now by using the contact form or directly at +506-8359-6656 (mobile / WhatsApp).