Only a small number of lenders understand the whole concept of repair and invest investing, and these private money lenders in Singapore are categorized into the following five basic types:
- Residential Lenders
- Commercial Lenders
- Bridge lenders
- High-end lenders
- Development lenders
Among these five different types of lenders, you need to know which lender is going to be suitable for your real estate investment. Usually, people start by investing in a single-family house, which is why they choose residential money lenders in Singapore. But the fundamental difference between lenders depends on the source of funds. That’s why; can be easily categorized into bank lenders and private money lenders.
Type of Bank Lenders – If you are going to a lender who is providing you financing with the help of some financial institutions, where they will sell or take their role to the Wall Street to get money. These types of lenders will follow certain rules and regulations specified by banks or Wall Street. That is why to get the loan; you need to follow these rules and regulations, which is not suitable for a real estate investor interested in repairing and invest investing.
Private Money Hard Lenders – These are lenders who work on a private basis. They usually work in a group of private lenders, who like to lend money regularly. Their best quality is that they do not sell their paper to any financial institution or bank. They have particular rules and regulations, which are made to help an investor in real estate.
Private lenders that are in Fix and Flip – You can easily find the hard money residential lenders, which are really in arranging and flip loans. Most real estate investors find it very difficult to get financing to buy a property, which they have taken under contract.
And when you finally get an excellent property and contact a lender for financing, your loans can be turned down based on some neighborhood problems. Then the investor looks for another characteristic but the lender could not finance them due to the depreciation of the market.
In this way, an investor is always looking for properties. But some lenders do not have enough money to finance their agreement, while others are continually raising their interest rates, which can not be paid. Apart from all these issues, you can find lenders who are willing to lend money on repair and flip properties.
These money lenders in Singapore also have specific rules and regulations like a typical bank or financial institution, but they are designed to work for the real estate investor.