How Private Lending Works in Costa Rica
Private lending through GAP Investments is reviewed deal by deal, with attention to collateral, loan-to-value, documentation, lender fit, and the closing structure.
Private lending works best when the process is disciplined from the beginning.
Private lending in Costa Rica is not about browsing random deals or guessing which opportunity looks attractive.
A proper lending opportunity should be reviewed around collateral, ownership, loan amount, loan-to-value, legal structure, use of funds, repayment logic, and closing coordination.
GAP Investments helps organize that review so private lenders can evaluate real estate-backed opportunities more clearly.
The basic idea
Property-backed lending means real estate is used as security for the loan. If the borrower does not repay, the lender’s protection is tied to the legal structure and collateral behind the transaction.
How the review process works
1. Initial Review
The property, loan amount, ownership structure, use of funds, and exit strategy are reviewed first.
2. Collateral Review
The property is reviewed for location, marketability, estimated value, and suitability as loan security.
3. LTV Review
Loan-to-value compares the requested loan amount to the estimated property value.
4. Documentation
Title, registration, corporate documents, permits where relevant, and supporting information are reviewed.
5. Lender Fit
The opportunity is matched against lender profile, capital range, comfort level, and preferred structure.
6. Closing
If the lender proceeds, the transaction moves toward legal review, closing coordination, and final documentation.
Loan-to-value helps lenders understand collateral coverage.
Loan-to-value, often called LTV, compares the loan amount to the estimated property value.
For example, if a property is worth 500,000 US dollars and the loan request is 250,000 US dollars, that is a 50 percent loan-to-value.
Lower LTV generally provides stronger collateral coverage. Higher LTV can change the risk profile and may affect whether an opportunity is suitable.
Risk is reviewed through structure, not guesswork.
Private lending always involves risk. The goal is to review that risk through a clear structure before capital is placed.
Collateral, title clarity, LTV, borrower cooperation, documentation, and exit strategy all matter.
Core review points
Property location, estimated value, title clarity, existing liens, requested loan amount, use of funds, repayment plan, and closing pathway are all part of the review.
Not every opportunity fits every lender.
Some lenders prefer smaller residential property-backed loans. Others prefer commercial, construction, or larger capital placements.
The right fit matters.
GAP Investments works to understand a lender’s profile, including capital range, preferred structure, expected return, timing, and risk comfort.
That helps opportunities be introduced more selectively and more intelligently.
Continue reviewing the lending process
Property-Backed Lending
Understand the core lending model secured by Costa Rica real estate.
Lending Opportunities
Review how curated opportunities are introduced privately to qualified lenders.
Why Deals Don’t Move Forward
Learn why some loan requests are not suitable for private lender review.
Project Financing
Review larger commercial, construction, and development-related financing discussions.
About GAP Investments
Learn more about the company behind the lending opportunity review process.
Want to understand whether GAP Investments may fit your lending profile?
The next step is a direct conversation so we can understand your capital range, preferred structure, timing, and lending goals.