Money lender Singapore
have always been the reprieve of real estate investors who want to close a deal
but are short of funds. Sometimes, investors still use this kind of financing
even they already money. Before you call those investors crazy, read on about
money lenders. Here some of the basics that you should know about them.
They are easier to convince compared
to banks and traditional lenders. People have called money financing "easy
access to credit" and why not. Because money lenders, who are also known
as private lenders, usually work on their own, you won't have to convince a lot
of people to get your loan approved. If the lender says yes to you, then that's
it; No more approval of other personnel and office superiors. Conventional
lenders usually need the nod from a certain number of personnel before they
release loans.
One reason why private lenders do
not take long in processing loan applications is because they use a different
system when evaluating borrowers. If traditional lenders look at your
creditworthiness based on you credit score, private lenders care about the deal
you are presenting. They want to know what deal you want to close using their
money and if you will be able to repay them wit the profit you'll get from this
deal. For instance, if you want to rehab a property, they will assess whether
that house indeed has a potential to yield profit. They will look at how you
plan to transform an old house into a new home. If they see that you will be
able to repay the money through that deal, then they will finance it.
Because of this system, Money Lender are more exposed to risks
of defaults. Add to this the fact that they lend money even to those who have
poor credit scores. As mentioned earlier, care about the deal borrowers present
and not about their current income or other proofs of creditworthiness. That is
why they use a higher interest rate compared to traditional lenders. If banks
are stringent in screening loan applicants to ensure their survival, the high
interest is private lenders' way of keeping their business running. Rates vary
depending on location but an 18% interest is common.
Read articles and watch videos about
Low Interest Personal Loan online at Rehab-real-estate.com and discover more
information about these lenders.
