Investors, earn great returns with terms that suit your needs.
Make safe, consistent returns on your investment each and every month, by lending on home equity in Costa Rica, secured by a mortgage lien on the title.
Gap Investors brokers’ equity loans to homeowners so that they can renovate their home, buy a new car, or consolidate their debts and more.
Private lenders like YOU can lend as little as $50,000 and up!
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 $50,000, 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 can be created by the lenders, and each individual lender would be 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 other borrowing options, 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 3+ 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:
- Providing full transparency for its own operations.
- Requiring a good loan-to-value ratio (all loans are under 60% of appraised value), disclosed to lenders.
- Making sure investors are protected 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 by the lenders for an individual mortgage and is used exclusively for representing the lenders and nothing else.
- Being properly regulated by the laws of Costa Rica.
- Choosing reputable professionals and advisors: attorneys, accountants, title insurance companies, banks, appraisers, surveyors, and developers.
The Collateral: Real Estate
The risk of lending on home 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, Gap will help assist the lender in foreclosure proceedings or execution of trust guaranty on the property, and the property’s sale or transfer will be forced by law. The lender may opt to purchase the property with the funds owed — at that point the lender becomes the owner and has full decision-making capabilities and may proceed any way they wish. — This is why lenders choose Gap Investors.