Investor Relations

We are always looking to expand our pool of private investors. All of our loans are secured by first deeds of trust are all low loan to value amounts (<40%) at interest rates between 1 to 2 percent per month. Some of the many reasons for investing with us in Costa Rica mortagages are:

Costa Rica Real estate values are not only still steady but continue to have modest appreciation in most markets for several reasons including: Costa Ricans raise the price of their property when it does not sell ever year and most belive that it will ever be worth less, regardless of worldwide market conditions.

Most Costa Ricans own their properties free and clear and have little or no pressure to sell or liquidate them.

Not only are Americans coming to Costa Rica but Europeans, Asians, other Latinos and Canadians are coming as well. For this reason Costa Rica is affected by the US economy (undoubtably) but still they are decoupled from it as well.

Even though Costa Rica is no longer a tax haven, their privacy associated with Sociedad Anonimas and lack of capital gains tax for casual investment make it very desireable to invest in and not technically being a tax haven has advantages for both individuals and financial institutions doing buisiness here.

Regardless of the market conditions and availability of capital in the USA, baby boomers continue to retire and seek places with moderate climate, alow cost health care and affordable living conditions. Those who seek to expatriate to another country quickly find that their options are very limited and Costa Rica is certainly one of, if not the, most desireable places to relocate offshore. Some of the many attractive qualities include: Low cost health care

• Low cost insurance
• No capital gains
• Relatively painless and diverse immigration process
• Good infrastructure
• Large expat population
• Moderate climate with low heating and cooling costs
• Friendly attitude toward Americans
• Same time zone
• Low cost daily quick flights to and from the USA.
• Granted there are some areas that are inflated by foreign speculation but we are intimately familiar with these on a project by project basis.
• Recent changes to the laws related to collecting from those who are debtors (including mortgages) make the process much quicker and straight forward and their is no bancruptcy protection to slow or stop the foreclosure process.
• The national registry system make title search and due diligence much easier and title insurance is available but not necessary in most cases.
• There are well known international corporations such as Stewart Title and Chicago Title that can facilitate escrow and legal services for investors that are not in the country.
• Lack of foreign private mortgage capital allow for high yields on relatively safe investments.
• The Costa Rica Baking System has a MINIMUM latency of 60 to 90 days to process A (traditional A paper) loans and even though officially Fanie Mae and Freddy MAc cleared the way for a secondary paper market, their own internal liquidy problems led to a vacuum in the secondary mortgage market. This vacuum is aan incredible opportunity for the aright group of investors as there is lots of A, AB and B paper loans available that are technically eligible for atraditional funding. This and other factors allow for selling these notes for a PREMIUM instead of a discount if a fund needs to quickly liquidate assets.
• The Costa Rica investment market was previously flooded with high yield, unrealistic opportunities that somehow had validity and a solid track record (The Villalobos Brothers, The Cubans and others) and the collapse of these enterprises has left a vacuum that is ripe to be filled with a solid and sound alternative based on real estate equity.
• Costa Rican private investors know the value of investing in first deeds of trust and are willing and able to not only come in and bail out a property but to follow through by foreclosing and repossessing properties and they only lend their money at 2 to 3 % per month when they are prepared to own and remate (foreclose) on a property.
• Another level of lender works between the loans that we offer and the hard money Tico Lender and they are the hard money foreigners but often their requirements and lead times are worse than the Nacional banks. Often they get greedy and try to cross collateralize everything a person has and controls instead of doing true equity based loans. The beauty of private financing and hard money is that is supposed to be quick and clean. The key to this in Costa Rica is working with an individual that understands the Costa Rica real estate market and can give quick, conservative appraisals of the true value of the property and only lend in areas and types of properties that have true "fire sale" value and can be either liquidated or sold rapidly.

If you are interested in investing in mortgages in Costa Rica, please complete the following form and we will contact you and discuss the possibilities.