There are so many rumors related with the private money loans, and the fact that it is greatly beneficial for the real estate investors of the today’s property world. People are giving so much importance to these factors in the favor of becoming real investors and to get full level of profit out of different sources. There is all too long a history of money lenders in Singapore, going to invest their own money in your property investments. Hard money loans and it is important for you to realize that the origin of hard money loans used to come from guys in back or in certain situations where it was the old boys club. You have to know somebody to get a loan.
I remember even a decade ago it was very difficult to find anybody that will give you loans based upon the asset of the property. They wanted to base upon your credit score. Some of these guys that had some money that were entrepreneurial decided they will be willing to lend money at high interest rates if they had good security and didn’t really care who they loan the money to or why they loan them the money. That started the revolution that you see today where money lenders in Singapore are little more prominent than they were before it used to be. You could not jump on Google or the Internet or anything else to find good private lenders in Singapore is virtually impossible. You had to know somebody, knew somebody or know somebody that had some money that was willing to take risk. Now you have seen Private Money Lenders become more like institution.
The money lending in real estate has become so much gigantic factors which play an important part in one’s success and leading a path toward luxury. Some of them had become complete institutions but many of them are doing things like an institution but not being institutionalized meaning being credit score driven. So when it comes to private money lenders in Singapore that are going to pay loans, and it is going to be important for you to realize that not all private or hard money lenders are graded equal and it is important to realize what type of hard money lender you are looking for. There are separate lenders for residential homes, developmental properties and for commercial ones.
But it has changed significantly from the old boys club where you had to know somebody to get into the club and these guys that were charging high interest rates which is still the case with money lenders in Singapore, they were lending based upon on the assets of the real estate not based upon the criteria the individuals which is still the case today for some hard money lenders or some hard money loans but many of the loans are done actually based upon the criteria of the individual which is something that I think that they need to get away from because it is really based upon value of the property not based upon the individual.