from what i understand they are giving the 12% because that is what SWH agreed with them. it also takes too long to get a bank loan approved by the time the bank approves someone else might have brought it they are getting people from sg to raise funds for this and since they are working with the developer. my friend says it's quite safe, safer then playing forex or stocks because the risk is not so high. I'm actually looking for diff opinions so i can make a better decision.
I'm giving you a different opinion, and my opinion is that your friend is either lying or deluded and that the whole thing is a ponzi scheme.
The stuff about "taking too long to get a bank loan" is rubbish. Developers can get pre-approval for lending, or they can get revolving lines of credit that they can draw down with no notice, and they'd still pay less than 12% for it. There is NO reason for them to raise money from idiots in Singapore instead of going to a German bank to do it.
And it's not "safe", because you're running the risk that the ultimate investor (it's not SWH, by the way - they're giving the money to someone else) runs off with your money.
The entire thing sounds like a pack of lies.