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.
Start Here For New Lenders
Begin with a conversation about your goals, the amount you are considering, when you may need access to it, and the level of risk you are comfortable taking. Moving to Costa Rica or selling a home does not mean you need to commit the proceeds to a loan.
1. Understand The Opportunity
GAP presents lender rates from 9% to 16% annually. We favor opportunities around 9–10% with conservative leverage. A lower interest rate alone does not make a loan safe: review the property, valuation, borrower, documents and repayment plan.
2. Review Security And Cash Flow
Every GAP lender must hold first-lien position. We never arrange second-position loans. Existing mortgages must be paid off before or at closing. Lower LTV is preferred; 30% or less provides more collateral coverage than 40% or the 50% maximum.
Standard terms are six months to three years, with interest-only payments and principal due at maturity. Review the actual payment schedule, direct borrower-to-lender payment arrangements and borrower-paid costs in the loan documents before proceeding.
3. Decide After Reviewing The File
Ask about valuation, insurance, costs, late payments, default, enforcement and your exit options. The borrower pays loan-related fees from the loan proceeds. Confirm your own receipt and payment arrangements in writing.
Property-backed lending can involve delayed payments, enforcement costs and loss of capital. First-lien security does not guarantee repayment or immediate ownership of the property.
A first inquiry can be simple. Share your name, contact details and what you would like to understand. Avoid sending sensitive financial documents until the team explains what is needed and how to provide it.
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.
Managing a fund or a large mandate?
Pension funds, fund managers and family offices can work with Grupo GAP directly. See Institutional Capital in Costa Rica.
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.
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.
Private lending · First-lien security · Review opportunities at 9–10%
Payments 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.
This describes standard property loans. Payment and administration arrangements for the separate US$50 million-plus project-financing program are determined for each transaction.
