The importance of a site visit when requesting a loan.

 site visit

So here we go…. We received an application for a loan for $150,000.00, which is a nice size, the location is in Quepos, again nice area and the pictures were quite good. Appraised value was $420,000.00.  Everything looks ok on the surface. We could not seem to get an exact location, it appeared that the gentleman was technically challenged and did not know how to give us the google co-ordinates (It happens). We told him about our site visit costs and valuation fee. An agreement of $250.00 for the day trip, (pretty much just covers gas and lunch) was reached and the money was to be in hand upon our arrival. This is why we ask for the funds to be deposited in advance. Again, everything was moving along smoothly. Than it starts, the directions given stated a couple of kms on a dirt road! Ok, starting to look a bit less interesting. But, we decided to go because of all of the above reasons. With directions in hand via text message, we planned to leave at 8:30 and be there by 11:30. We knew about the main Bridge being out between Alajuela and San Jose but figured that since we were going in the opposite direction that everything should work out. WRONG! Two hours to get from Escazu to La Guacima toll. Highway is like a parking lot! Pura Vida. Now we are going towards Quepos and the directions state to go to the Maxi Pali in Quepos. We are thinking about the one close to the downtown core. Wrong again. It is the big one on the Constanera highway. We stop and call for clarification. “oh, only a few km further and hang a left on the dirt road by the gas station”. Hummm… left takes us further away from Quepos and towards the mountains. Quepos is the other way. Even though it was already about 100+ degrees outside, temperatures started rising dramatically in the car. 10 Km later on a bumpy dusty road, we find this little town with a name we had never even heard of. You know the kind, where the mayor is the store owner, the diputado (congressman) owns the soda, etc. Ok…. well we are here now. [Read more...]

Don’t play craps with your down payment!

Once again, this week we ran across a very interesting and sad scenario. A client (borrower) contacted us to go look at a potential development on one of Costa Rica’s premier beaches. The property was fully permitted, with a ton of direct beach front property with gorgeous views, rather large and basically shovel ready. Worth its weight in Gold! We were very excited to offer financing for the project, when we asked her how much money she put down on the property, she told us the amount and of course we asked if it was in escrow, (it was not). She had put 25% down and had the other 25% in her bank account and was asking us to provide the balance in order to complete the purchase. We felt confident that we could accomplish this so we agreed after the site visit, to meet and discuss her options back in San Jose the next morning. On December 27th, we all got together to discuss further and found out that her purchase agreement had expired on December 19th. We asked her if she had an extension and she said “no” then we asked very politely “do you still have the 25% in your bank account?” [Read more...]

Don’t leave your brain on the plane!

Don't leave your brain on the planeWhen coming to Costa Rica for the first time, you will undoubtedly be in absolute awe of it’s natural beauty, wonderful people, relaxing atmosphere and the incredible opportunities abound! We hear the horror stories all the time. One client told me “I came down and bought 4 properties on our first trip! Now, we can’t even find the lot’s we purchased.(true story) They sold two of their lot’s at half price on their second trip, but still have a hard time finding the other lot’s.

That’s where the trouble can start. When coming to CR, you must approach everything with a positive, but cautious attitude. Just as you would back home! They have laws, restrictions, permits etc just like any other modern society. Do not be fooled by the famous saying “oh it’s Costa Rica…you can do what you want down here”. Once you have made your mind up that CR is to be your new home, seek out information on the following; Immigration rules and procedures, banking facilities, investigate car purchases and the “Marchamo”. (Annual car tax) If you have chosen to open a business, speak with other people that have done it. They are a wealth of information. [Read more...]

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Need a Loan? If you own a home in Costa Rica our private lenders have money to lend without the hassle of traditional banks.

With a home equity loan, you can use your home equity for whatever you need, whenever you need it for things like: debt consolidation, home improvements or repairs, college funds, medical emergencies, or to buy a vehicle and more.

So if you’re looking for the best home equity loan in Costa Rica then don’t leave it to chance, complete our simple online Loan Request Form for a free evaluation today.

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Is Gap Investors really just another Costa Rica Ponzi Scheme?

First of all, what is a Costa Rica Ponzi Scheme? Costa Rica Ponzi Scheme

The Ponzi scheme is arguably the most effective and popular way that criminals pull money from hard working people. It is named after Charles Ponzi, a con man who in the 1920s created several pyramid schemes that managed to pull over $20 million from his victims. Bernie Madoff managed to get $65 billion from his investors after 30 years of effort.

Almost everyone knows about Bernie Madoff, but how many have heard of the Villalobos brothers? For about 20 years Enrique and Oswaldo Villalobos were legendary in Costa Rica paying clients up to 3.5 percent interest in cash, per month. Called “The Brothers Fund,” they defrauded 6,400 American and Canadian investors out of around half a billion dollars, making it one of the biggest Ponzi schemes in Central America.

The scheme itself is simple. It pulls in those who honestly believe that it will work, only to find out too late that their money is gone. It is a two-step process that starts with offering an attractive investment opportunity with a return that is simply too good to believe, yet many will still invest in these schemes. The second part is that there actually is no investing, only taking money from those new to the scheme and giving part of their investment funds to the original investors to keep them on board. At some point, it will all collapse because not enough money can continuously be raised to pay off the investors. In fact, Madoff’s Ponzi scheme might have lasted to this day had the financial crisis of 2007 not arisen to deplete his ability to pay off the original investors. Despite all the attention drawn to such schemes, they are still being used to this day.

How to Spot a Costa Rica Ponzi Scheme!

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How to get financing in Costa Rica

How to get financing in Costa Rica One can find varying kinds of information and data on the web about how to get financing in Costa Rica. Many websites say that they have financing choices offered through the National or Local banks and financial institutions. The problem is that most foreigners after reviewing and going through all the documents and costs, do not take the financing opportunities. First of all, it is extremely difficult and complicated to qualify for a loan if you are a temporary non-permanent resident of the country. The paperwork is unnecessarily long and complicated and the banks do not function with the skill and efficiency that you are accustomed within the USA, Canada or other countries. Up till recent times, getting financing in Costa Rica has not been easy or stress free and the terms were not very favorable or suitable. However, with Gap Investors, financing opportunities are finally here, with lower, affordable rates that are streamlined with an organized loaning procedure.

Get guidance from the reputed firm

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Why Quick Cash Loans are Advantageous.

Why Quick Cash Loans are AdvantageousA home owner in or around Heredia, Escazu or Santa Ana, Costa Rica can use their property as collateral to get mini quick cash loans from $3,000 to $5,000. At Gap Investors, we can provide you a loan without the stress of filling out long forms or having to go through extensive checks. Because the property itself is the collateral, you don’t have to worry about your own personal financial state to get the quick cash loans that you need.

There comes a time when an unexpected expense will arise and you may need cash on the spot. When that day happens, a property owner will have a very good option in obtaining a quick cash loan that can pay for the unexpected expense while getting good terms for the loan as well.

What are Quick Cash Loans?

Basically, these are loans design for quick payment of unexpected expenses such as a car repair bill, medical procedure, surprise utility bill or simply a payment that you need to make which you do not have the cash handy to do.

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Reasons to Use a Mortgage Broker for Your Loan

Reasons to Use a Mortgage BrokerMore homeowners in Costa Rica are turning to mortgage brokers to help them better understand their options. Here’s why.

Here are 8 Reasons to Use a Mortgage Broker in Costa Rica!

More choice:
If you go directly to one lender, you will only be offered one option. Mortgage brokers have relationships with several different lenders and are knowledgeable in each lender’s range of options. The more lenders you have competing for your home loan, the more you can save. This is especially important these days, when the banks are saying “no” more often.

Experience:
Mortgage brokers are specialists who can provide expert advice and guidance on mortgage products, interest rates and current housing market conditions. They know what needs to be done, they make sure it happens and because it’s their own business, they’re in for the long haul.

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Making the Most of Your Home’s Equity

apply now buttonNow that the rainy season is here in Costa Rica, it’s time for homeowners to tackle those home improvement projects they had been putting off all summer.

Your home’s equity can be a valuable financial resource to fund the projects on your list.  Whether the improvements are necessary like repairs or upgrades to your home or something more fun like installing a new swimming pool or to spruce up your home’s curb appeal, you can actually increase the value of your home when you take out a home equity loan.   So weather you want to renovate your home, consolidate your bills, cover tuition costs, or replace your automobile, you can use a home equity loan from Gap Investments.  

What is Home Equity?  

Your home’s equity is the difference between what you still owe for your home and what your home is worth. An equity loan is a mortgage lien placed on real estate in exchange for cash to the borrower. For example, if your home is worth $250,000 and you owe $50,000 on your home you can get an equity loan at 50% of the loan to value (LTV) or $100,000 in cash (minus closing costs) in exchange for a lien placed on the title placed by the lender of the equity loan.  

[Read more...]