Earn 8% To 24% With Equity Loans In Costa Rica

Gap Investors Ltda brokers a wide range of equity loans between a borrower and a lender (or a group of lenders). We broker small home equity loans, as low as $5000, typically with a single lender, for home improvement, vehicle purchases, education, or financing the borrower's small business, typically secured by a mortgage lien. We also broker financing for large development projects. For larger loans the collateral property is usually held in trust for the duration of the loan.

Gap Investors Ltda is NOT an investment fund. You will not be investing in a fund where other people decide where the money goes -- you are lending to a specific borrower in Costa Rica. All mortgage contracts are between the borrower and the lender or lenders. In the case of multiple lenders a numbered holding company owned by the lenders is created, and each individual lender is named in the contract for additional protection. The strength of Gap Investors is in identifying high value loans, evaluating the risk, presenting them to the investors, and brokering the loan.

This current financial climate, with a large increase of borrowers unable to borrow from banks and looking at the secondary mortgage market, provides enterprising private lenders with the opportunity to finance at higher interest rates. Gap Investors generally employs loan terms from 6 months for some hard money loans to up to 5 years for home equity loans. Collateral is provided in the form of the borrower's property, through a mortgage lien or holding the property in trust.

Gap Investors Ltda. operates by:

1. Providing full financial transparency for its own operations.
2. Requiring a good loan-to-value ratio (all loans are under 60% of appraised value), disclosed to lenders.
3. Protecting loans either by a mortgage lien in the case of smaller home equity loans, or a title transfer in trust in the case of larger loans. When there are multiple lenders, a holding company is typically formed for an individual mortgage and is used exclusively for representing the lenders and nothing else.
4. Being properly regulated by the laws of Costa Rica.
5. Choosing reputable professionals and advisors: attorneys, accountants, title insurance companies, banks, appraisers, surveyors, and developers.

The Collateral: Real Estate

The risk to lenders from equity loans is quite low. Gap only lends up to 60% of the appraised value of a property. Since the loan is a debt against the property, when the term is over and the principal is due, if the borrower cannot repay, the lender can choose to force the sale of the property to cover the debt. That is where Gap steps in and starts the procedure of foreclosing the loan and giving the lender back the funds -- this is why lenders choose Gap Investors.

It's always easier to lend money than it is to get it back -- but with loans secured by property our lenders have choices.

Earn Monthly Income

The main advantage of mortgage-based investments is that unlike many other forms of investment, they earn a stable monthly interest payment. "High-interest" savings accounts at the bank offering around 3% per annum also provide a monthly interest payment but as you can see from the table below, real estate bridge loans can earn you much more per month:

Interest	$25,000	$100,000	$250,000	$500,000
3%	$62.50	$250	$625	$1,250
12%	$250	$1,000	$2,500	$5,000
18%	$375	$1,500	$3,750	$7,500
24%	$500	$2,000	$5,000	$10,000

At an 18% interest rate, which is an average loan interest with Gap, an investment of only $100,000 can generate $1,500 a month in earnings. That can make a good supplement to your income, or in a country such as Costa Rica, where a regular monthly wage is $500, you can live fairly well with that kind of income, while enjoying the regular amenities that you are used to back home.