How we lend

  • The basis of a private loan is that you need collateral, so the lender has a guarantee. This needs to be a property, with a structure, in your name, without any leans on it.
  • Private lenders will loan up to a maximum of 50% of the true value of your property. We have a very simple approval process based almost entirely on the value and desirability of your property.
  • We will ask for the official plans showing the characteristics of the property and proof that it can be used as collateral.
  • We will ask basic information, as to what the funds will be used for, in order to present your loan to potential investors.
  • When we find a good match for you, the investor will briefly meet with you and review your property and documents.
  • At the loan closing, we charge a flat fee of the loan value for our services. This is generally slightly more than what banks charge for a loan origination fee in Costa Rica. This fee, and the legal fee are initially paid by the investor, and rolled into the loan to be paid back over time.
  • The closing is done by an attorney, and a mortgage is placed in the Registry just like a bank does.
  • When you finish paying the principal and interest back to the investor at the end of the term, the property will be legally released back to you. If you need an extension or renegotiation at the end of the term, we can facilitate that with your lender, or, help you transfer the loan to a new investor if need be.

Private loans vs. traditional mortgages

  • A private loan is not the same as a traditional bank mortgage.

  • A traditional bank mortgage is normally 15 to 30 years and amortized, meaning the borrower pays down both principal and interest over time. The loan terms are based mostly on the creditworthiness of the lender, more than the location and value of the property.
  • A private loan is normally 1 to 5 years, interest only, and based mostly on the value of the property you already own. Private loans are often used to finance shorter terms projects like: growing a business, construction or paying off higher interest debt.



Private lenders will often loan in areas where the banks don’t.

Private lenders will loan to non-residents.

Unlike a Bank, private loan terms are flexible and negotiable.

When Costa Rican bank loans can take up to six months for approval, we can close loans as quickly as two weeks in some cases.

Private loans require minimal paperwork to be able to close as quickly as possible.

Approval is based on the value of the property, not on the credit history of the individual.

Banks often have large pre-payment penalties (Up to 4% of the pre-payment amount); private loans normally have no pre-payment penalties after the first year.

Our fees are a flat 3-5% of the loan amount, plus legal costs. Other lenders can charge up to 8%!


Because private loans are shorter term, they often have slightly higher interest rates. A ballon payment of the principal is due at the end of the term.

Long term private loans, 5 years or more, are rare.

Private lenders will often value a property lower than the property owner.