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Why should you become a Private Lender in Costa Rica versus owning a Business?

Why should you become a Private Lender?

Many people come to Costa Rica with grand ambitions to open a new Beach Bar or start a residential project, as examples. We always caution people about this. These things can get you into financial difficulty very quickly.

How do we know? Because, we are the people you call after, needing a loan!

We often advise people to come down, get settled, feel out the different culture and work environment first before making any major decisions that can significantly affect your financial status. We always hear the same stories; “I developed in the U.S. for over 20 yrs!” That is wonderful, but Costa Rica is not the United States of America. Things work differently here than there.

Labor laws are different, construction is different, permitting process, etc. Wouldn’t it be better for a few years just to put your money in a safe investment and earn 1% a month?

Once the loan is due, you will have your capital back along with knowledge and experience behind you. If you choose to move ahead with whatever project you had in mind, you may be a few years older but decades ahead in understanding how this country works! We cannot strongly urge you enough, to get all your ducks lined up before investing all your assets into one project.

Working with Gap, you can diversify by lending your money out on many different properties in different locations in Costa Rica. If you really think about it, each loan you do is akin to creating a new business. 

For example:

Loan A is for $75,000.00 in Santa Ana and is generating $750.00 a month. That’s probably better than most companies clear for that amount of investment. Another one might be in Escazu for $100,000.00 but that loan is at 14%. That gives you an income of $1400.00 a month. No employees, no caja, no hassle! 

That example also gives you the opportunity to explore Costa Rica and see where projects are making head way or the best beach to open your restaurant if you choose too.

Don’t be one of those people that say “How do I leave Costa Rica with $1 million? Bring down $2 million.

Gap has a combined experience of over 100 yrs of living in Costa Rica between all of Gaps divisions. We have seen and done pretty much everything you can imagine at one point and time in Costa Rica.

In closing, take your time and let your money work for you in order that you can make informed decisions about your new project!

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