Finance

How To Look For A Private Money Lender

Private money lender is usually comprised of professional and experienced people, or groups of people eager to make private loans for higher interest rates.

Looking for the ideal money lender in Singapore can be overwhelming, especially if it’s your first time. The reason for this is because, oftentimes, they serve extremely specific functions like commercial lending, multi-family lending, or non-owner occupied rehab mortgages. Also, private money lenders tend to be smaller firms. They mainly work on word of mouth and referrals.

 

Responsiveness

Usually, deals can be closed much faster with private money lenders. This is one advantage of working with them over a traditional financial firm. Usually, the deals will be closed in a matter of days instead of months or weeks. Because of this, you have to look for a lender who is responsive. If you really need the money as soon as possible, you do not want to risk it by working with someone that requires a lot of time just to respond.

Transparency

You need to be sure that you know what is going on each step of the process across any transaction. A reliable money lender will ensure that you’re systematically kept informed. Aside from that, they would also follow the different guidelines and regulations set forth by the local/state government with regards to the process of loan origination.

Competitive Points and Rates

One of the significant things to look for is the interest rates when you are looking for a money lender – whether it is for a private lender or traditional financing. Also, it is significant to know what you are looking at. Do not compare the rates of a large national bank to the rates of a private money lender.  Both of them have different features. That is why you may find them having huge differences in their rates.