GAP Investments — Lender FAQs (Costa Rica Private First-Lien Mortgages)
Introduction: This FAQ is written for private lenders and investors who want clear, practical answers about placing capital into USD, fixed-rate, interest-only loans secured by titled Costa Rican real estate. Below you’ll find lender-focused FAQs covering home equity loans, commercial loans, construction lending, project financing, shovel-ready projects, loan-to-value limits, due diligence, servicing, enforcement, and portfolio strategy.
Standard property loans are asset-backed, with first-lien security, a maximum 50% LTV based on GAP’s valuation with lender input, and terms from six months to three years. Lower LTV is preferred. The separate US$50 million-plus major-project program is assessed individually; standard-loan limits and terms do not apply. Use these FAQs to understand how each loan type works from the lender’s perspective so you can evaluate opportunities and prepare questions for our team.
Information below is for general guidance only and does not constitute investment, tax, or legal advice.
Returns are not guaranteed. Always consult your own professional advisors and review individual loan documents before investing.
General Model & Security
What does GAP Investments do for lenders?
GAP Investments connects private capital with USD, fixed-rate, interest-only loans secured by titled Costa Rican real estate.
Every GAP lender must hold first-lien position; GAP never arranges second-position loans. Any existing mortgage must be paid off before or at closing. We use conservative ≤50% loan-to-value (LTV), and 6–36 month terms, and we coordinate underwriting,
closing on behalf of our lender clients. After closing, borrowers pay lenders directly. GAP can help with communication if a problem arises.
Every GAP lender must hold first-lien position; GAP never arranges second-position loans. Any existing mortgage must be paid off before or at closing. We use conservative ≤50% loan-to-value (LTV), and 6–36 month terms, and we coordinate underwriting,
closing on behalf of our lender clients. After closing, borrowers pay lenders directly. GAP can help with communication if a problem arises.
How is my investment secured?
GAP requires first-position security for standard property loans. The proposed legal instrument, registration and enforcement process must be explained in the individual loan documents by the professionals handling the transaction. A mortgage and a guarantee trust are different instruments; first position does not guarantee repayment or eliminate legal costs and delays.
What types of collateral do these loans use?
Collateral typically includes titled homes, condos, residential lots, commercial buildings, mixed-use properties, and development land.
We avoid untitled holdings and generally do not lend against concession beachfront properties or assets with unclear legal status.
We avoid untitled holdings and generally do not lend against concession beachfront properties or assets with unclear legal status.
What does “first-lien” protection mean in Costa Rica?
GAP does not arrange second-position standard loans. An existing mortgage must be paid off before or at closing so the new lender holds first position. The closing professionals must verify registration and explain any legally preferred claims, costs and enforcement rules; first position is not an unconditional promise of full recovery.
What are typical loan terms and interest structures?
Terms are generally between 6 and 36 months, with fixed annual interest rates and interest-only monthly payments.
The borrower pays a balloon of principal at the end of the term, which allows you to receive regular cash flow plus principal repayment at maturity.
The borrower pays a balloon of principal at the end of the term, which allows you to receive regular cash flow plus principal repayment at maturity.
In which currency are loans and payments structured?
Loans are denominated in U.S. dollars (USD). Principal, interest, and closing calculations are all handled in USD.
Borrowers may earn income in colones or other currencies, but your position and cash flows are in dollars to avoid FX mismatch on the lender side.
Borrowers may earn income in colones or other currencies, but your position and cash flows are in dollars to avoid FX mismatch on the lender side.
Are these loans similar to HELOCs (home equity lines of credit)?
GAP’s standard property loans are not revolving HELOC products.
These are closed-end, fixed-term home equity loans with defined principal, rate, and maturity; they are not revolving credit lines.
These are closed-end, fixed-term home equity loans with defined principal, rate, and maturity; they are not revolving credit lines.
Does GAP offer crowdfunding-style investments?
No. We do not operate a crowdfunding platform, and we do not advertise loans as public securities.
Our model is based on direct relationships with qualified private lenders, clear security over the collateral, and disciplined due diligence for each transaction.
Our model is based on direct relationships with qualified private lenders, clear security over the collateral, and disciplined due diligence for each transaction.
Who services the loans after closing?
Borrowers pay lenders directly. For standard property loans, GAP’s primary role is arranging the loan through closing. GAP does not collect or distribute the borrower’s payments or provide routine loan servicing. If a payment is missed or another issue arises, either party can contact GAP for help with communication and resolving the issue.
Can I review examples of closed loans and outcomes?
Yes. We can share anonymized examples of past transactions, including the collateral profile, LTV, rate, term, and repayment outcome,
so you can understand how the model performs across different property types and regions.
so you can understand how the model performs across different property types and regions.
Home Equity Loan Investments
How do home equity loans in Costa Rica work for lenders?
Home equity loans are first-lien mortgages secured against a borrower’s existing titled property.
As a lender, you fund a fixed amount (starting at US$50,000), receive monthly interest-only payments,
and hold a first-lien position at no more than 50% of the value GAP determines, with your input and acceptance.
As a lender, you fund a fixed amount (starting at US$50,000), receive monthly interest-only payments,
and hold a first-lien position at no more than 50% of the value GAP determines, with your input and acceptance.
What are typical ticket sizes for home equity loan investments?
Loan requests start at US$50,000 and up. Requests above US$1 million require additional documentation and due diligence.
Larger loans may be syndicated among multiple lenders, but many standard deals are funded by a single investor.
Larger loans may be syndicated among multiple lenders, but many standard deals are funded by a single investor.
What interest rates do borrowers usually pay on home equity loans?
Borrower pricing is reviewed for the individual loan. A lower LTV can support a better rate, with the property, location, documentation and other file details also affecting the offer. GAP explains the proposed terms directly with the borrower.
The agreed lender rate is specified in the loan documents and is paid without GAP fees deducted. Borrowers pay all loan-related fees.
The agreed lender rate is specified in the loan documents and is paid without GAP fees deducted. Borrowers pay all loan-related fees.
What loan terms are common for home equity deals?
Home equity loans usually run between 6 and 36 months, with interest-only monthly payments and a balloon of principal at maturity.
Many borrowers plan to repay through a sale, refinance, or business liquidity event within that timeframe.
Many borrowers plan to repay through a sale, refinance, or business liquidity event within that timeframe.
How quickly can a home equity loan be approved and closed?
GAP closes loans within 10 business days once the required documents are complete; title or registry issues can add time.
What types of borrowers use home equity loans?
Borrowers include homeowners, expats, small business owners, and investors who want to unlock equity for renovations, business capital,
debt consolidation, new purchases, or bridging to a future bank refinance or sale.
debt consolidation, new purchases, or bridging to a future bank refinance or sale.
How does home equity lending differ from bank mortgages for lenders?
Compared with banks, private home equity lending is faster, simpler, and more focused on collateral than on detailed income underwriting.
The trade-off is a higher yield and shorter term, with investors relying on conservative LTV, strong documentation, and lender oversight rather than bank-style bureaucracy.
The trade-off is a higher yield and shorter term, with investors relying on conservative LTV, strong documentation, and lender oversight rather than bank-style bureaucracy.
Do home equity loans always use a borrower’s primary residence?
Not necessarily. Collateral can include primary homes, second homes, rental properties, or other real estate as long as title is clean and marketability is strong.
Some lenders prefer owner-occupied properties; others are comfortable with investment properties.
Some lenders prefer owner-occupied properties; others are comfortable with investment properties.
What happens if a borrower wants to sell the property during the loan term?
If the borrower sells, your loan is normally paid off at closing from the sale proceeds.
The notary obtains payoff statements, ensures your mortgage is settled in full, and then records the lien cancellation in the National Registry.
The notary obtains payoff statements, ensures your mortgage is settled in full, and then records the lien cancellation in the National Registry.
Are home equity loans suitable for first-time private lenders?
For many new investors, a straightforward home equity loan on a titled property in a liquid area is a good starting point.
It offers a clear security structure, defined exit, and simpler monitoring than complex construction or project financing.
It offers a clear security structure, defined exit, and simpler monitoring than complex construction or project financing.
Commercial Loan Investments
How do commercial loans in Costa Rica differ from home equity loans for lenders?
Commercial loans are secured by income-producing or business-use properties such as offices, warehouses, retail, hospitality, or mixed-use buildings.
Analysis includes both collateral value and the business context (tenants, permits, operating history), but the loan is still secured by first-lien real estate.
Analysis includes both collateral value and the business context (tenants, permits, operating history), but the loan is still secured by first-lien real estate.
What are typical sizes for private commercial loans?
Private commercial loan requests start at US$50,000 and up. Requests above US$1 million require additional documentation and due diligence.
Larger facilities are often syndicated among multiple investors or structured through a guarantee trust with several participants.
Larger facilities are often syndicated among multiple investors or structured through a guarantee trust with several participants.
What key requirements apply to commercial borrowers?
The core requirement is a commercial property with a clean title and valid operating permits.
We also review leases, business plans, historic cash flow where available, and the borrower’s exit strategy (sale, refinance, or business income).
We also review leases, business plans, historic cash flow where available, and the borrower’s exit strategy (sale, refinance, or business income).
How fast can commercial loans close?
GAP closes loans within 10 business days once the required documents are complete.
Larger or multi-party deals may require additional time for valuation, legal reviews, and escrow logistics.
Larger or multi-party deals may require additional time for valuation, legal reviews, and escrow logistics.
Do commercial loans pay higher yields than standard home equity loans?
Yields can be similar or slightly higher, depending on asset type, location, and complexity.
Some commercial deals involve additional structuring work and may justify a higher coupon or fees, always disclosed in the specific opportunity.
Some commercial deals involve additional structuring work and may justify a higher coupon or fees, always disclosed in the specific opportunity.
What risks are specific to commercial real estate loans?
Commercial assets can be more sensitive to tenant turnover, business cycles, and zoning or permit issues.
We mitigate this with careful due diligence on permits, occupancy, local demand, and by keeping LTV conservative relative to a realistic market value.
We mitigate this with careful due diligence on permits, occupancy, local demand, and by keeping LTV conservative relative to a realistic market value.
Can commercial loans be cross-collateralized with other properties?
Yes. A commercial loan can be secured by multiple properties, such as a business asset plus a residential property, as long as the title is clean on each.
This structure can lower overall LTV and provide additional comfort to lenders.
This structure can lower overall LTV and provide additional comfort to lenders.
Do you finance turnkey businesses like hotels or restaurants?
Yes, subject to careful review of permits, financials, and tourism demand.
We focus on the real estate and business viability; hospitality assets may also be considered under project financing for larger or phased developments.
We focus on the real estate and business viability; hospitality assets may also be considered under project financing for larger or phased developments.
How are commercial leases treated during enforcement?
Existing leases are reviewed to ensure they do not block enforcement.
In a foreclosure scenario, the buyer or lender may assume, renegotiate, or terminate leases, depending on legal rights and deal structure.
In a foreclosure scenario, the buyer or lender may assume, renegotiate, or terminate leases, depending on legal rights and deal structure.
Are commercial loans suitable for conservative lenders?
Many commercial loans can fit a conservative profile when LTV is low, permits are in order, and the location is strong.
We classify risk levels and can help you select deals that align with your preferred risk/return profile.
We classify risk levels and can help you select deals that align with your preferred risk/return profile.
Construction Loan Investments
What is a construction loan from the lender’s perspective?
A construction loan funds the building or major renovation of a property, with capital released in stages as work progresses.
You receive interest on the outstanding balance, and your security is the land plus improvements under construction, supported by permits and budgets.
You receive interest on the outstanding balance, and your security is the land plus improvements under construction, supported by permits and budgets.
What loan sizes and terms are common for construction deals?
Construction loan requests start at US$50,000 and up, with standard terms from six months to three years. Requests above US$1 million require additional documentation and due diligence.
Pricing depends on LTV, the property and the complete loan review. The separate US$50 million-plus major-project program has individually determined structures and terms.
Pricing depends on LTV, the property and the complete loan review. The separate US$50 million-plus major-project program has individually determined structures and terms.
How are construction funds disbursed to protect lenders?
Funds are released in scheduled draws after verified progress, inspections, and supporting invoices.
This staged approach ensures that capital is only released as value is created on-site and keeps total disbursements within the approved LTV and budget.
This staged approach ensures that capital is only released as value is created on-site and keeps total disbursements within the approved LTV and budget.
What documents are required before funding a construction loan?
Key documents include titled land, stamped architectural and structural plans, municipal building permits, a detailed budget and timeline,
proof of water and access, and any required environmental approvals.
proof of water and access, and any required environmental approvals.
How do you manage cost overruns and delays?
We build in contingencies and retentions, monitor progress closely, and require updated budgets when variances appear.
Significant overruns or delays may trigger re-evaluation of funding, additional equity contributions, or restructuring discussions with the lender.
Significant overruns or delays may trigger re-evaluation of funding, additional equity contributions, or restructuring discussions with the lender.
What happens if permits are delayed or revoked mid-project?
Regulatory issues are treated seriously. We evaluate whether the project can be cured, paused, or restructured.
If permits cannot be restored, lenders may rely on the underlying land and existing improvements while enforcement options are analyzed.
If permits cannot be restored, lenders may rely on the underlying land and existing improvements while enforcement options are analyzed.
Is construction insurance required?
Yes. Significant construction projects require appropriate insurance, naming the lender as beneficiary.
Coverage protects against fire, natural disasters, and certain site incidents while the loan is outstanding.
Coverage protects against fire, natural disasters, and certain site incidents while the loan is outstanding.
Are construction loans higher risk than simple home equity loans?
Construction loans involve additional execution risk (permits, contractors, timelines), so we offset this with more intensive due diligence,
staged draws, and sometimes lower starting LTV. Some lenders prefer to allocate only a portion of their portfolio to construction exposure.
staged draws, and sometimes lower starting LTV. Some lenders prefer to allocate only a portion of their portfolio to construction exposure.
Can I review construction progress personally?
Yes. You may visit the site, review photos and reports, and request additional updates.
Our team coordinates inspections and shares documentation for each draw so you can track how your capital is being deployed.
Our team coordinates inspections and shares documentation for each draw so you can track how your capital is being deployed.
What typical exits repay a construction loan?
Common exits include the sale of finished units or the entire project, bank refinancing once stabilized,
or a long-term investor takeout. The intended exit is analyzed before funding and monitored during the project.
or a long-term investor takeout. The intended exit is analyzed before funding and monitored during the project.
Project Financing (Large-Scale Developments)
Large-project financing starts at US$50 million. We are looking for sponsors who already own the land and have shovel-ready projects, with required documentation, plans, permits and approvals in order. If your project is not ready, tell us what is missing: GAP can help coordinate the preparation needed before seeking funding.
Steven Stewart leads large-project financing inquiries. Terms, pricing, security, repayment arrangements and funding stages are assessed individually. Standard property-loan terms and limits do not apply to this program.
What is considered “project financing” in your model?
Our separate major-project financing program starts at US$50 million for projects such as large hotels, hospitals, malls and major developments. Sponsors should own the land and have documentation, plans, permits and approvals ready. Steven Stewart leads these discussions; all financing arrangements are assessed individually.
How is due diligence handled on large projects?
Major projects require extensive, project-specific documentation and due diligence covering legal, technical, environmental, financial and practical matters. The borrower pays all costs, including permits and project preparation. GAP can help identify missing requirements and coordinate preparation, but does not pay to obtain permits.
Why is the Water Letter (Carta de Disponibilidad de Agua) so critical?
Water availability and the approvals applicable to the proposed project must be verified during preparation. Tell Steven Stewart which water documentation is available and what remains outstanding; required evidence depends on the project and the competent authorities.
How long can project financing terms be?
Large-project financing starts at US$50 million. Structure, pricing, security, payment arrangements and timing depend on the individual project and capital provider. Standard property-loan rules do not apply. Steven Stewart can discuss the requirements and preparation needed.
How are project financing yields determined?
Large-project financing starts at US$50 million. Structure, pricing, security, payment arrangements and timing depend on the individual project and capital provider. Standard property-loan rules do not apply. Steven Stewart can discuss the requirements and preparation needed.
Are all project financing deals syndicated?
Large-project financing starts at US$50 million. Structure, pricing, security, payment arrangements and timing depend on the individual project and capital provider. Standard property-loan rules do not apply. Steven Stewart can discuss the requirements and preparation needed.
What key risks should lenders consider in project financing?
Main risks include permit or environmental issues, construction delays, cost overruns, slower-than-expected sales, and macroeconomic changes.
Our due diligence and LTV limits mitigate but cannot eliminate these risks; investors should be comfortable with longer timelines and more complex monitoring.
Our due diligence and LTV limits mitigate but cannot eliminate these risks; investors should be comfortable with longer timelines and more complex monitoring.
Does project financing always involve new construction?
Often yes, but not always. Some deals focus on repositioning or expanding existing hospitality or commercial assets where substantial improvements and rebranding are planned.
Can project financing loans be structured in phases?
Yes. Many projects are split into phases, with each phase having its own budget, milestones, and disbursement schedule.
This approach allows lenders to reassess performance between phases and manage exposure more effectively.
This approach allows lenders to reassess performance between phases and manage exposure more effectively.
Who is project financing best suited for on the lender side?
Project financing is typically suited for experienced lenders with higher risk tolerance, larger ticket sizes, and comfort with multi-year horizons and detailed documentation.
It is usually part of a diversified portfolio rather than a first exposure to Costa Rican mortgages.
It is usually part of a diversified portfolio rather than a first exposure to Costa Rican mortgages.
Shovel-Ready Project Funding
What does “shovel-ready” mean for lenders?
A shovel-ready project has all key approvals and permits in place so construction is ready to begin, subject to financing and final project review.
From the lender’s perspective, it is a development where legal, technical, and administrative hurdles have been cleared before funding.
From the lender’s perspective, it is a development where legal, technical, and administrative hurdles have been cleared before funding.
Which permits must be in place for a project to be truly shovel-ready?
Typical requirements include: Land-Use Permit (Uso de Suelo), Environmental Viability (SETENA, where applicable),
Water Letter, CFIA-approved building plans, Municipal Building Permit, and Worker Insurance (INS),
along with any other project-specific authorizations.
Water Letter, CFIA-approved building plans, Municipal Building Permit, and Worker Insurance (INS),
along with any other project-specific authorizations.
How fast can shovel-ready projects be funded?
Large-project financing starts at US$50 million. Structure, pricing, security, payment arrangements and timing depend on the individual project and capital provider. Standard property-loan rules do not apply. Steven Stewart can discuss the requirements and preparation needed.
How long does it usually take a developer to reach shovel-ready status?
Large-project financing starts at US$50 million. Structure, pricing, security, payment arrangements and timing depend on the individual project and capital provider. Standard property-loan rules do not apply. Steven Stewart can discuss the requirements and preparation needed.
Why are shovel-ready projects attractive to lenders?
They combine the upside of development financing with significantly reduced entitlement risk.
With permits in place and documentation organized, lenders can move quickly and base decisions on a well-defined project scope.
With permits in place and documentation organized, lenders can move quickly and base decisions on a well-defined project scope.
Do shovel-ready loans still use staged draws?
Large-project financing starts at US$50 million. Structure, pricing, security, payment arrangements and timing depend on the individual project and capital provider. Standard property-loan rules do not apply. Steven Stewart can discuss the requirements and preparation needed.
Can shovel-ready projects still face delays?
Yes. Weather, contractor issues, supply chains, and market conditions can all cause delays.
However, with permits in place and a vetted plan, the risk of legal or regulatory stoppages is much lower than in non-entitled projects.
However, with permits in place and a vetted plan, the risk of legal or regulatory stoppages is much lower than in non-entitled projects.
Are shovel-ready deals usually syndicated?
Large-project financing starts at US$50 million. Structure, pricing, security, payment arrangements and timing depend on the individual project and capital provider. Standard property-loan rules do not apply. Steven Stewart can discuss the requirements and preparation needed.
What yield profile can lenders expect from shovel-ready projects?
Large-project financing starts at US$50 million. Structure, pricing, security, payment arrangements and timing depend on the individual project and capital provider. Standard property-loan rules do not apply. Steven Stewart can discuss the requirements and preparation needed.
How are shovel-ready opportunities prioritized in your pipeline?
Because documentation is complete and risk is clearer, shovel-ready opportunities often move to the front of the queue
for both underwriting and funding, subject to lender interest and allocation.
for both underwriting and funding, subject to lender interest and allocation.
Underwriting, Loan-to-Value & Risk Management
What maximum loan-to-value (LTV) do you use?
We typically lend up to about 50% of a conservative verified market value and often less for raw land, remote properties, or complex projects.
This equity cushion helps protect lenders against market fluctuations and execution risk.
This equity cushion helps protect lenders against market fluctuations and execution risk.
How is property value determined?
GAP determines the property value used to calculate LTV, with input and acceptance from the lender. The borrower’s estimate does not determine the approved value or loan amount. Any calculator result is an illustration until GAP and the lender complete their review.
Do you ever exceed 50% LTV?
No. The maximum considered for standard property-backed loans is 50% LTV. GAP prefers 30% or less; lower LTV provides a larger equity cushion.
Our standard model is built around ≤50% to keep borrower equity meaningful and to provide a strong margin of safety for lenders.
Our standard model is built around ≤50% to keep borrower equity meaningful and to provide a strong margin of safety for lenders.
What due diligence steps are completed before closing?
Typical steps include title search, lien and annotation review, corporate authority checks, zoning confirmation,
permit and environmental review where relevant, valuation, site visit, insurance validation, and analysis of borrower capacity and exit strategy.
permit and environmental review where relevant, valuation, site visit, insurance validation, and analysis of borrower capacity and exit strategy.
How do you evaluate borrower risk if loans are asset-based?
While these are asset-backed loans, we still review the borrower’s background, business history, and their plan for repayment.
Strong collateral plus a plausible, time-bound exit (sale, refinance, cash flow) are both essential parts of underwriting.
Strong collateral plus a plausible, time-bound exit (sale, refinance, cash flow) are both essential parts of underwriting.
Do you finance raw land without immediate development plans?
Yes, but with more conservative LTV and close attention to access, zoning, water, and marketability.
Raw land can be slower to sell, so we treat it cautiously and often prefer clear development or sale strategies.
Raw land can be slower to sell, so we treat it cautiously and often prefer clear development or sale strategies.
Are environmental or regulatory issues deal-breakers?
Unresolved environmental issues, lack of water rights, or major permit gaps are usually deal-breakers.
We may consider a smaller, land-only facility if entitlements are realistically achievable, but critical risks must be understood and mitigated before funding.
We may consider a smaller, land-only facility if entitlements are realistically achievable, but critical risks must be understood and mitigated before funding.
How do you handle title problems discovered during underwriting?
If title defects, unregistered improvements, or unexpected liens appear, we pause the transaction,
require cures, and only proceed once the title is clean and enforceable.
If problems cannot be satisfactorily resolved, we do not close.
require cures, and only proceed once the title is clean and enforceable.
If problems cannot be satisfactorily resolved, we do not close.
What are the main risks lenders should be aware of?
Key risks include borrower default, slower-than-expected exits, legal delays in enforcement, market downturns, and disaster impacts on collateral.
Conservative LTV, strong documentation, and lender oversight mitigate but do not eliminate these risks, so investors should only commit risk capital.
Conservative LTV, strong documentation, and lender oversight mitigate but do not eliminate these risks, so investors should only commit risk capital.
How do you classify deals by risk level?
We consider collateral type, LTV, location, permits, borrower profile, and exit strategy, then classify deals from more conservative
(core home equity in prime locations) to higher risk (complex projects, remote land).
This helps investors allocate capital according to their own risk appetite.
(core home equity in prime locations) to higher risk (complex projects, remote land).
This helps investors allocate capital according to their own risk appetite.
Process, Documents & Closing
What information do lenders receive before deciding on a deal?
You receive a summary of the opportunity, including collateral details, LTV, rate, term, borrower profile, purpose of funds, exit plan, valuation information, and key risk notes. For larger deals, you may also see a more detailed credit memo and draft deed structure.
Are site visits possible before funding?
Yes. For many deals, you can visit the property either independently or accompanied by our team or a local broker,
especially for higher-ticket or project-finance opportunities.
especially for higher-ticket or project-finance opportunities.
Is escrow used at closing?
For larger or multi-party transactions, we often use licensed escrow to handle disbursements.
For smaller deals, the notary’s trust account may be used with detailed closing statements and documentation.
For smaller deals, the notary’s trust account may be used with detailed closing statements and documentation.
How are funds disbursed at closing?
The notary disburses funds according to a closing statement:
paying prior mortgages, taxes, HOA fees, and agreed costs first, then wiring the borrower’s net proceeds.
The mortgage or trust deed is executed and submitted to the National Registry the same day.
paying prior mortgages, taxes, HOA fees, and agreed costs first, then wiring the borrower’s net proceeds.
The mortgage or trust deed is executed and submitted to the National Registry the same day.
How do I know my lien has been properly registered?
We provide notary certifications and Registry confirmation once the lien appears on title.
Copies of the registered instrument and updated property certifications are archived and made available to you.
Copies of the registered instrument and updated property certifications are archived and made available to you.
Who holds the original documents?
The notary submits originals for registration with the National Registry.
Certified copies and digital scans are maintained in secure archives, and you can request copies at any time for your records.
Certified copies and digital scans are maintained in secure archives, and you can request copies at any time for your records.
Can investors co-invest in a single loan?
Yes. Co-lender structures are common for larger amounts.
Agreements define voting thresholds, amendments, payment responsibilities, and enforcement mechanics so decisions can be taken efficiently and fairly among all participants.
Agreements define voting thresholds, amendments, payment responsibilities, and enforcement mechanics so decisions can be taken efficiently and fairly among all participants.
What onboarding documents do investors need to provide?
Standard requirements include identity verification, beneficial ownership disclosure, and proof of source of funds.
For companies or trusts, formation documents, good-standing certificates, and authorized signatory details are also required.
For companies or trusts, formation documents, good-standing certificates, and authorized signatory details are also required.
How long does it take from initial interest to first funding?
Once your onboarding and KYC are complete, you can review suitable loans as they become available, depending on the current pipeline and your preferred size and risk profile.
Do I need to be in Costa Rica to sign or fund?
Not necessarily. Many investors sign via properly drafted powers of attorney or use digital documentation where local law permits.
Funds are typically wired in USD from your bank to the designated trust or escrow account.
Funds are typically wired in USD from your bank to the designated trust or escrow account.
Direct Payments & Post-Closing Questions
Who collects monthly payments from borrowers?
Borrowers pay lenders directly. For standard property loans, GAP’s primary role is arranging the loan through closing. GAP does not collect or distribute the borrower’s payments or provide routine loan servicing. If a payment is missed or another issue arises, either party can contact GAP for help with communication and resolving the issue. The borrower and lender follow the payment instructions and schedule in their loan documents.
How are late payments handled?
The lender receives payments directly and should raise a missed payment with the borrower. GAP can help facilitate communication if either party asks. Any late-payment charges or further action depend on the signed loan documents and the lender’s review with the appropriate professionals. GAP does not automatically monitor payments or collect arrears.
When does formal enforcement begin?
If a default is not resolved, the lender should review the signed security documents and applicable enforcement procedure with Costa Rican legal counsel. The process depends on the legal instrument and circumstances. It is not an automatic transfer of the property to the lender, and timing, costs and recovery are not guaranteed.
What role does insurance play during servicing?
Insurance requirements and responsibilities should be reviewed in the loan documents before closing. GAP does not provide routine post-closing insurance monitoring or renewal management. Borrowers and lenders should understand who is responsible for maintaining and checking the required coverage.
How are property taxes and HOA fees monitored?
Any amounts payable at closing are addressed in the closing statement. After closing, the borrower and lender follow the responsibilities in their loan documents. GAP does not routinely monitor these payments or advance funds to cover arrears.
Can an investor exit before maturity?
These are private, illiquid loans.
Assignment or sale of your position may be possible with consent and documentation, but you should plan to hold to maturity.
If you foresee needing liquidity, discuss this with us before committing.
Assignment or sale of your position may be possible with consent and documentation, but you should plan to hold to maturity.
If you foresee needing liquidity, discuss this with us before committing.
What happens when a loan reaches maturity?
At maturity, the borrower is expected to repay principal via sale, refinance, or cash.
If they are not ready, options can include a structured extension, refinance, or moving toward enforcement, always in coordination with the lender.
If they are not ready, options can include a structured extension, refinance, or moving toward enforcement, always in coordination with the lender.
How is communication handled during problem situations?
If a borrower or lender brings an issue to GAP, we can help facilitate communication and work toward a resolution. This assistance does not mean GAP receives payments, routinely monitors the loan, or guarantees repayment.
What happens after a successful payoff?
Once principal and any outstanding interest are received, we coordinate lien releases or trust cancellations through the notary.
Provide payoff statements and deliver final documentation so the file can be closed and your capital can be redeployed.
Provide payoff statements and deliver final documentation so the file can be closed and your capital can be redeployed.
How do investors monitor their overall portfolio status?
Lenders track payments received directly from borrowers and keep their loan documents, balances and maturity dates. GAP does not issue routine payment confirmations or portfolio statements after closing. If an issue arises, lenders can ask GAP for help with communication.
Compliance, Taxes & Practicalities
What compliance standards does GAP follow?
We apply standard anti–money laundering (AML) and know-your-customer (KYC) procedures for both borrowers and investors,
verify beneficial ownership, and document sources and uses of funds for each transaction.
verify beneficial ownership, and document sources and uses of funds for each transaction.
Are there restrictions on which investors can participate?
GAP welcomes borrowers and lenders of any nationality, wherever they currently live. Costa Rican residency is not required. Each transaction still requires appropriate documentation and review, including identity and source-of-funds checks.
How are taxes on interest handled for investors?
Tax treatment depends on your home jurisdiction and structure.
We recommend discussing Costa Rican and international tax implications with your advisor.
The borrower pays all loan-related fees, deducted from loan proceeds at closing. The closing breakdown distinguishes the total loan amount, fees, any existing-mortgage payoff and the net cash received by the borrower.
We recommend discussing Costa Rican and international tax implications with your advisor.
The borrower pays all loan-related fees, deducted from loan proceeds at closing. The closing breakdown distinguishes the total loan amount, fees, any existing-mortgage payoff and the net cash received by the borrower.
Can I invest through a company, trust, or retirement structure?
Yes. Many lenders invest through corporations, LLCs, or trusts, subject to presenting formation documents, good-standing certificates, and signatory authorities.
Treatment for retirement or pension structures depends on your jurisdiction’s rules.
Treatment for retirement or pension structures depends on your jurisdiction’s rules.
How is confidentiality managed?
We share only the borrower information necessary for due diligence and transaction coordination, and we handle sensitive data under customary confidentiality.
Documents are stored securely with controlled access.
Documents are stored securely with controlled access.
Do all loans use escrow accounts?
Not all. Larger or multi-party deals often use licensed escrow, while smaller transactions may utilize a notary trust account.
In every case, disbursements are documented and tied to signed closing statements.
In every case, disbursements are documented and tied to signed closing statements.
How are disputes among co-lenders handled?
Co-lender or trust agreements define voting rights, decision thresholds, and dispute resolution mechanisms.
This framework allows the group to act in a unified way if amendments, extensions, or enforcement steps are required.
This framework allows the group to act in a unified way if amendments, extensions, or enforcement steps are required.
Are loans reported to consumer credit bureaus?
No. These private mortgages are not usually reported to consumer credit bureaus.
Performance is managed through covenants, collateral, and lender oversight rather than retail credit scoring systems.
Performance is managed through covenants, collateral, and lender oversight rather than retail credit scoring systems.
Which professionals are involved in each transaction?
Deals typically involve notaries, appraisers, surveyors (when necessary), environmental consultants for certain projects,
and occasionally escrow providers. We work with experienced professionals familiar with Costa Rican real estate and registry practice.
and occasionally escrow providers. We work with experienced professionals familiar with Costa Rican real estate and registry practice.
Can investors request tailored reporting or additional audits?
Discuss any requested reporting, inspections or third-party reviews before committing. These are not part of GAP’s routine post-closing role for standard property loans. For the separate US$50 million-plus project-financing program, responsibilities are determined for the individual transaction.
Portfolio Strategy & Getting Started
How can I diversify my lending portfolio in Costa Rica?
Many investors spread capital across multiple loans, property types (residential, commercial, land), regions, and maturities.
You can combine simpler home equity loans with selective exposure to construction, project, or shovel-ready deals to balance risk and cash-flow timing.
You can combine simpler home equity loans with selective exposure to construction, project, or shovel-ready deals to balance risk and cash-flow timing.
Is it better to start with one larger loan or several smaller ones?
It depends on your capital, risk tolerance, and administrative preferences.
Several smaller loans may offer better diversification, while a single larger, conservative deal may be easier to monitor.
We can discuss options based on your goals.
Several smaller loans may offer better diversification, while a single larger, conservative deal may be easier to monitor.
We can discuss options based on your goals.
What communication cadence should I expect as a lender?
GAP coordinates the transaction through closing. After closing, borrowers pay lenders directly; there is no routine GAP payment-notice or portfolio-reporting service. Contact GAP if you need help communicating about a missed payment or another issue.
Do you have a minimum investment amount?
Loans start at US$50,000.
Higher minimums may apply for certain projects or syndication structures. We can advise based onthe current pipeline and your target allocation.
Higher minimums may apply for certain projects or syndication structures. We can advise based onthe current pipeline and your target allocation.
Are new lending opportunities available on an ongoing basis?
Yes. We originate loans nationwide throughout the year.
Volume and type of opportunities may fluctuate with market conditions, but there is generally a steady pipeline of first-lien, ≤50% LTV options.
Volume and type of opportunities may fluctuate with market conditions, but there is generally a steady pipeline of first-lien, ≤50% LTV options.
Can returns be compounded automatically?
Loans pay monthly interest and principal at maturity; there is no automatic compounding mechanism.
However, many investors choose to redeploy repaid principal and interest into new loans to compound returns over time by choice.
However, many investors choose to redeploy repaid principal and interest into new loans to compound returns over time by choice.
Can I visit Costa Rica to meet the team and see assets?
Absolutely. Many lenders combine due diligence with visits to see properties and meet our team, notaries, and other professionals.
We can help coordinate meetings and site visits in key regions, subject to scheduling.
We can help coordinate meetings and site visits in key regions, subject to scheduling.
How do you manage operational risk within the business?
We use standardized checklists, dual-control disbursement procedures, document tracking, secure digital archives,
and clear escalation protocols from underwriting through payoff or enforcement, all designed to reduce operational errors.
and clear escalation protocols from underwriting through payoff or enforcement, all designed to reduce operational errors.
What should I consider before making my first loan?
Consider your total capital, time horizon, liquidity needs, risk tolerance, familiarity with Costa Rica, and whether you prefer simple or complex deals.
Private, asset-backed lending can be attractive, but it is not risk-free and should form part of a broader investment strategy.
Private, asset-backed lending can be attractive, but it is not risk-free and should form part of a broader investment strategy.
How do I start the onboarding process as a lender?
Email info@gap.cr with your investment objectives, preferred property types, approximate ticket size, and timeline.
We will provide our onboarding checklist, complete KYC, and then share suitable first-lien opportunities as they become available.
We will provide our onboarding checklist, complete KYC, and then share suitable first-lien opportunities as they become available.
Disclaimer: The FAQs above are for informational purposes only and may change as Costa Rican laws, market conditions, and GAP procedures evolve.
They do not represent a solicitation or guarantee of returns. Always review specific loan documents and seek independent advice before investing.
Standard Loan Valuation And Lender Payments
Who determines the property value?
GAP determines the property value used to calculate LTV, with input and acceptance from the lender. The borrower’s estimate does not determine the approved value or loan amount. Any calculator result is an illustration until GAP and the lender complete their review.
The lender’s agreed rate
For standard private loans, lenders receive the agreed annual rate without GAP fees deducted. A loan agreed at 12% pays the lender 12%; one agreed at 16% pays 16%. Borrowers pay all loan-related fees and costs. This does not describe an after-tax return or guarantee payment.
Early repayment
Early repayment carries a penalty. The amount and conditions vary by lender and will be explained when GAP reviews your proposed loan terms with you.
These are standard property-loan guidelines. Major-project financing from US$50 million is assessed separately.
Explore Lending At 9–10% GAP’s Preferred Range
Competitive pricing can attract more borrowers. Deployment and returns depend on each loan; neither is guaranteed.
GAP favors opportunities around 9–10% because competitive borrower pricing can attract a wider pool of potential borrowers. That can support deal flow, but does not guarantee continuous deployment or higher realized income than a higher-rate loan. Review the property, loan-to-value, borrower, repayment plan and expected timing alongside the interest rate.
✓ Returns 9–16% annually✓ First-lien position✓ US dollar loans✓ Lower LTV preferred; 50% maximum✓ Secured by Costa Rica real estate✓ Deploy from $50,000 USD
Private lending · First-lien security · Review opportunities at 9–10%
