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Process To Secure Loans

What We Do to Secure Loans

A growing economy presents many lucrative opportunities for the local and foreign investor. Due to the lack of flexibility of the national bank system, there is still an important market for secure loans in Costa Rica. A lot of borrowers look for “bridge capital” to start up lucrative residential or other construction projects, or simply to get some cash from their home (equity release).

Either through a mortgage or a guaranty trust, we advise private investors who seek to increase their assets and, at the same time, to lend to borrowers who can be verified. Gap Investments has consolidated this practice to bring quality secure loans to our investors.

What does Gap Investments do to secure loans?

  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 perform an evaluation of 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 full application.
  8. We verify that all the taxes are up to date, including HOA fees when applicable.
  9. Our agents follow up with a phone call to verify that the information is correct, and to establish the ability of the borrower to pay off the loan.
  10. We perform a site visit and take current, up-to-date photos.
  11. Our analyst than gives a final evaluation.
  12. We send the loan request out to our private lenders and determine who will be funding the loan.
  13. Once a lender says yes, we generate a draft term sheet.
  14. In the meantime we get the proper insurance on the property.
  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 lender and borrower for review.
  17. Any small tweaks or changes are made at the behest of the lender or borrower. Then, we sent a final draft of the term sheet to all parties.
  18. We coordinate the signing with the lender, borrower and the 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 make sure the loan is properly recorded.
  21. From here, we monitor and record the monthly payments.

All this just for a standard secure loan. Guaranty trusts or development projects are more complicated and time-consuming.

Contact us now to invest in secured equity loans in Costa Rica today!

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