What does GAP Investments do?

GAP Investments places private capital into USD, fixed-rate, interest-only loans secured by first-lien mortgages or guarantee trusts on titled Costa Rican real estate. Terms are typically 6–36 months with ≤50% LTV to create a cushion against market volatility and execution risk.

What collateral secures these loans?

Titled property recorded at the National Registry: homes, condos, land, and commercial real estate. We avoid concession beachfront and untitled holdings. Documentation is notarized and registered, so the first lien is clear and enforceable.

What is first-lien protection?

First-lien means the investor’s claim is recorded ahead of other creditors. At closing, prior mortgages and annotations are paid and canceled so your lien is registered in first position. In a recovery, proceeds flow first to principal, interest, and costs per the deed.

How long are typical loans?

Most loans run 6–36 months. Borrowers pay monthly interest and a principal balloon at maturity. Short terms reduce duration risk and keep underwriting focused on near-term exits like sale, refinance, or business cash flow.

How are borrower rates set?

Deal-by-deal based on collateral, location, term, and structure. Rates are fixed for the borrower’s term. Investor economics are disclosed in each opportunity; we do not make blanket promises of yield.

Where does GAP lend?

Nationwide in Costa Rica. Beach/outside-GAM assets may require site visits and additional logistics. We focus on marketable titles and salable catchments to protect investor downside.

Do you lend in USD only?

Yes. All balances, closings, and servicing are in USD to avoid currency mismatch. Borrowers handle any local conversions; investor receipts are in dollars.

What about crypto?

We fund and pay in USD. If an investor holds crypto, we can coordinate a compliant off-ramp so wires land in USD before closing. We don’t denominate loans in crypto or accept crypto as collateral.

Who services the loans?

GAP manages collections, borrower communication, insurance tracking, and documentation for the life of the loan, keeping investors informed about payments and any exceptions.

Do you syndicate?

Many loans are single-investor; others are co-lender syndications under a shared first lien or trust with clear voting and servicing mechanics proportionate to commitments.

Do your private lenders offer HELOC loans in Costa Rica?

No, private lenders in Costa Rica do not offer HELOC loans. This type of financial product is not available in the Costa Rican market due to regulatory and market factors. Instead, private lenders focus on providing equity loans with fixed terms and interest rates.

Does GAP offer crowdfunding investments?

No. GAP does not offer, broker, or facilitate crowdfunding investments.

Why doesn’t GAP use crowdfunding platforms?

Our model emphasizes direct relationships, clear security over collateral, and tight control of due diligence and closing. Crowdfunding pools many small investors through third-party platforms and follows a different regulatory and operational approach, which isn’t aligned with how we safeguard lenders and borrowers in our transactions.

How do you value collateral?

Independent appraisals, registry comparables, broker input, and internal analysis. We set LTV on the lower of appraised or conservative value, typically capped at 50% (lower for land or unusual assets).

What due diligence is performed?

Title search, lien/annotation review, corporate authority checks, permit and zoning review when relevant, insurance requirements, borrower capacity assessment, exit analysis, and site visit. Any issues must be cured before closing.

Do you finance construction?

Yes, with staged draws against approved plans, permits, budgets, and inspections. We use holdbacks, draw verifications, and contingencies to control execution risk.

How do you manage default risk?

Conservative ≤50% LTV, strong documentation, fixed-rate/short-term structures, insurance, and active servicing. If a borrower misses payments, we act quickly per the deed to cure or enforce.

What are the main investor risks?

Borrower default, collateral value changes, legal delays, and disaster impacts. Our model mitigates but cannot remove risk; investors should expect variability in timing and outcomes.

How fast can a loan close?

Often, 5–10 business days after approval and document readiness, depending on appraisal timing, title cures, municipal clearances, and insurance.

What happens if title problems appear?

We pause, notify stakeholders, and require cures (e.g., cancellations, easements, boundary clarifications). If cures are not feasible, we do not close. Clean, enforceable first-lien registration is non-negotiable.

Do you require borrower equity?

Yes. Lending at ≤50% LTV ensures meaningful borrower equity. Construction deals also require verified cash equity and progress before each draw.

Are environmental issues reviewed?

Yes. We check SETENA status, where applicable, and verify municipal permits and water availability for projects requiring them. Unresolved environmental issues are deal-breakers.

Do you avoid certain assets?

We avoid concession beachfront, untitled holdings, and projects without essential permits or water. Remote assets without clear exit paths are approached cautiously.

What do investors see before funding?

Term sheet, credit memo, valuation summary, draft deed or trust, payoff statements for prior liens, insurance requirements, and the closing agenda. You may request a site visit.

Is escrow used at closing?

For larger or multi-party transactions, yes. For smaller deals, a notary trust account can handle disbursements with full documentation and controls. We adapt to deal size and complexity.

How are funds disbursed?

The notary pays prior liens, taxes, HOA, and closing costs per the statement, then wires the borrower’s net. The first lien is executed and presented to the Registry the same day.

How is the first lien confirmed?

Notary certifications and Registry filings are provided. We monitor until the mortgage or trust is fully recorded and share evidence of registration and any cancellation receipts.

Who holds originals?

The notary lodges instruments for registration. Certified originals and digital copies are archived securely; investors may request copies anytime.

Can investors co-invest?

Yes. Co-lender syndications define voting rights, amendment thresholds, and servicing mechanics. Alternatively, investors can form a single entity to hold the position, subject to KYC.

What ongoing reporting is provided?

Funding confirmations, monthly payment notices, immediate delinquency alerts, and periodic portfolio updates. Construction deals include draw reports and photos.

How are interest receipts handled?

Borrowers pay monthly interest in USD. After funds clear, distributions are sent to investors as per the servicing schedule and agreement.

Can an investor exit early?

Loans are illiquid. Assignment may be possible with consent, but investors should plan to hold to maturity. We help evaluate secondary options if needed.

What are the investor onboarding requirements?

Identity verification, beneficial ownership disclosure, and source-of-funds documentation. For entities, corporate documents and a signing authority are required.

Who collects payments?

GAP services the loans, monitors insurance, and enforces covenants. Payment confirmations are shared with investors, and exceptions are escalated promptly.

How are late payments addressed?

We contact the borrower immediately, assess contractual late fees and default interest, and work to restore current status. If unresolved, we follow the enforcement path defined in the deed or trust.

When does enforcement begin?

After the contractual cure period, the notary initiates judicial or notarial proceedings. Clear default triggers and documentation help expedite timelines, but investors should expect months, not days.

What if insurance lapses?

Insurance is mandatory with the lender loss-payee. Lapses trigger default and corrective actions. On claims, proceeds reduce exposure or fund repairs per the agreement.

How are construction draws controlled?

Draws are released against verified progress, inspections, and invoices, keeping total disbursements within the approved budget and LTV. Retentions and contingencies manage overruns.

What happens at borrower maturity?

Borrowers repay principal in a balloon via sale, refinance, or cash. If not, we may extend under agreed terms, refinance, or enforce, depending on collateral and investor preference.

How do you manage HOA/tax delinquencies?

At closing, we pay outstanding balances. During servicing, new arrears constitute default; we can advance to cure and add to the balance per the deed if necessary.

Are loans reported to credit bureaus?

No. Private liens are not typically bureau-reported. Performance is managed through covenants, collateral, and active servicing rather than consumer credit systems.

How do investors monitor status?

We provide confirmations, notices, and updates. You can request additional information, copies of documents, and photos, especially on construction or value-add projects.

What if a disaster impacts the asset?

Insurance is required. After a covered event, proceeds are applied to repair or principal reduction per the agreement. We coordinate adjusters, contractors, and documentation.

What compliance protocols does GAP follow?

Standard AML/KYC for investors and borrowers, verification of beneficial ownership, and documentation of sources and uses of funds. We maintain clear records of closings, payments, and communications.

Do investors bear closing costs?

Closing costs are typically borne by the borrower and included in the borrower’s ~8% closing line. In syndications, investors may share certain escrow or legal costs as disclosed up front.

How are taxes handled for investors?

Tax treatment depends on your domicile and structure. We recommend consulting your tax advisor. Borrower-side taxes and fees are handled at closing per Costa Rican practice.

Can I invest through a company or trust?

Yes. We accept domestic and foreign entities subject to KYC/AML. Provide formation documents, good standing, and signatory proofs.

How is confidentiality handled?

We share borrower information necessary for due diligence under customary confidentiality. Sensitive data is handled securely and only as needed for underwriting and servicing.

Do you use escrow for all transactions?

No. We use licensed escrow for larger or multi-party deals. For smaller loans, the notary’s trust account can manage disbursements with full documentation and controls.

Can investors request custom reporting?

Within reason, yes—especially on construction or complex collateral. Tell us your preferences when onboarding or funding.

Are there industries you avoid?

We avoid assets with unclear legal standing, concession beachfront, and projects lacking essential permits or water. We prefer salable areas with demonstrated demand.

How do you select appraisers and notaries?

We work with experienced, reputable professionals familiar with local markets and registry practice. Independence and documentation quality are key selection criteria.

How do you handle disputes among co-lenders?

Co-lender agreements define voting thresholds, decision rights, and dispute resolution mechanisms so actions can be taken swiftly and fairly.

Can I diversify across multiple loans?

Yes. Many investors deploy across property types, regions, and maturities to balance risk and cash-flow timing. We can discuss allocation preferences during onboarding.

Are opportunities continuous?

Yes. We originate nationwide. Availability varies by season and market flow, but we maintain a steady pipeline of first-lien, ≤50% LTV opportunities.

What communication cadence should I expect?

Funding confirmation at close, monthly payment notices, immediate alerts on exceptions, and periodic portfolio summaries. You can request additional updates at any time.

Do you offer minimums or caps?

Minimums and allocations vary by deal. Email [email protected] with your target amount and timing to review current options.

How do I start the onboarding process?

Email [email protected] with your investment objectives, preferred property types, and timeline. We’ll share our checklist for identity, entity, and banking details and discuss upcoming opportunities.

Can I visit Costa Rica to review assets?

Absolutely. We arrange site visits and meetings with our team and notaries. Beach/outside-GAM travel may require additional logistics and time.

How do you manage operational risk?

Standardized checklists, dual-control disbursements, document tracking, insurance monitoring, and escalation protocols ensure consistency from underwriting through payoff or enforcement.

What happens after a payoff?

We confirm receipt, deliver payoff statements, coordinate lien releases or trust cancellations, and provide final documentation to close the file. Investors receive a closing summary.

Can returns be compounded?

Loans are paid monthly interest only; principal returns at maturity. Some investors redeploy principal and interest into new opportunities, but this is investor-directed rather than automatic compounding.

What if I need liquidity mid-term?

These are private loans and generally illiquid. Secondary assignment may be possible with consent. Plan to hold to maturity and discuss any constraints with us early.

Final step: how do I engage?

Email [email protected] to discuss your allocation, timeline, and preferences. We’ll walk you through onboarding and share appropriate first-lien opportunities as they arise.