Questions? We have answers.
Frequently Asked Questions (FAQ) – Banyan Financial, LLC
1. What Services Does Banyan Financial, LLC Offer?
We offer a range of services tailored to meet your real estate investment needs. Our offerings include Fix & Flip, Buy & Hold, Refinance, Commercial, New Construction, and Private Money Loans. We also provide Proof of Funds Letters, Collateral DNA Reports, Debt Stack Reports, and high-equity off-market property leads so you are not competing with other investors in your area.
2. What are the benefits of private money lending?
Benefits include quicker access to capital, flexibility in loan terms, no minimum credit score requirements, and the ability to secure financing for properties that may not meet traditional lending criteria.
3. Are you a Lender or a Broker, and are there fees or commissions involved?
We are both a lender and a broker. If for any reason we can’t provide the funding you need, we have a large network of other lenders we work closely with and can broker the funds to you. We provide multiple options to ensure you get the best rates and the quickest closings available. If you need 100% funding, we also have split equity opportunities available to cover your purchase, rehab, and closing costs. Regardless of the loan type, there is always a 3% broker fee, which is standard in the industry.
4. How do you decide the amount to lend?
It is based on the asset you have under contract. Generally, we lend up to 90% of the purchase price and 100% of the rehab cost. Ask us how you can get up to 100%!
5. I need 100% financing. Can you do that?
Yes! When joint venturing with us, we can provide up to 100% financing.
6. What Does True 100% Funding Mean?
We will lend up to 100% toward your purchase, rehab, and closing costs—up to 70% of the ARV—when a joint venture is established between Banyan Financial, LLC, and the borrower.
7. How long does it take to close a transaction from start to finish?
Typically, about 14 days after we receive all required documentation. However, gathering the necessary documents can take three to four weeks. The key factor is how quickly you and your team provide the required paperwork. We can complete our part in roughly 14 business days, but most investors take longer to submit the full documentation. It’s best to aim for a 30-day closing timeline whenever possible.
8. What Does FHA Cap Mean?
The FHA Cap represents the maximum loan amount in the county where the investment property is located. To find the FHA Cap in your county, visit:
FHA Mortgage Limits (hud.gov)
9. What Does ARV Mean?
ARV stands for After-Repair Value, which is the estimated value of a property after all renovations are completed.
10. What Does Asset-Based Lending Mean?
Asset-based lending is a loan where the decision is primarily based on the value of the real estate property under contract rather than the borrower’s creditworthiness. While a borrower’s ability to repay is considered, the approval decision and loan-to-value ratio are mainly determined by the property’s value.
11. What are your Loan Terms?
- Banyan Financial, LLC offers loan amounts ranging from $30,000 up to the FHA Cap in the county where the property is located. We also provide additional funding solutions based on the property under contract and the type of loan needed.
- Rates start at 7% annualized interest with an origination fee from 0-3%, and there are no prepayment penalties. (Rates are based on credit score, but credit score does NOT determine loan approval.)
- Loan Term Options:
- 6 months to 2 years for Fix & Flip loans.
- 30 years for Buy & Hold or Refinance loans.
- One loan approved per applicant until a proven track record is established.
12. Do I need an appraisal, and how much will it cost?
Yes, Banyan Financial, LLC requires an appraisal before closing. Appraisal costs typically range from $400 to $700, depending on the property location.
13. Is a Licensed & Bonded Contractor bid required?
Yes, in most cases, a licensed and insured itemized contractor bid is required before we can process the loan.
14. Is my information kept confidential?
Absolutely! Your privacy is our top priority. Any information you provide is kept 100% confidential. If you want to work with a reliable, reputable company that treats you with professionalism, understanding, and respect—you have come to the right place!
If you have any other questions, feel free to contact us. We’re happy to help!