Working process of money lending to the borrowers
Nowadays to borrow short-term loans for purchasing something or investing in properties and in business,people are choosing non-institutional lenders in Singapore.It is because they provide facilities like quick funding, refinance cash-out and easy terms and conditions. Private money lenders mainly offer loans from secured real-estate asset for purchasing houses or buildings. If you want to borrow money for investment or for other purposes, you can choose the services of Money lendingSingapore as they are reliable and quick funders.
These private money lending services are right for both short term flippers and long term investors. These lenders have the right to provide money for the following types of people:
- Those who are looking to sell or purchase a property within one year like fix and flippers.
- Those who need quick financing.
- Those who want to renovate a property before they refinance with the conventional mortgage like buy and hold investors.
Things to notice in a private money lender:
- Experience:You should check their working years in the business and the total number of loans issued by them. Get direct information from the lenders website. There are some sincere money lenders who mention their available capital that is the best indicator of experience.
- Real estate specialization: These lenders are specialized in a particular area. Some of them issue loan to the residential properties like hard money lenders and some of them offer loan to both the residential as well as commercial properties. So you should make sure which lender is specialized in financing the property you want to finance.
- Interest rate and cost: It may vary widely from lender to lender. The interest rate should be in between 7%to 12% and lender fess should vary in between 1.5% to 10%. The hard money lenders mainly choose the limit of their fees up to 2.5%. You should also check that the lender should not have prepayment penalties as it will give the borrowers more options for repayment.