Questions? We have answers.
Frequently Asked Questions
1. What Services Does Upcycle Funds 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 we can’t provide the funding you need, we have a vast network of lenders we work closely with, allowing us to broker the funds to you. Our goal is to provide you with the best rates and fastest closings available. If you’re in need of 100% funding, we also offer split equity opportunities to cover your purchase, rehab, and closing costs. Regardless of the loan type, there is a standard 3% broker fee in the industry.
4. How do you decide the amount to lend?
We base our lending decisions 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 qualify for up to 100% financing.
5. I need 100% financing. Can you do that?
Yes! Through a joint venture with Upcycle Funds LLC, we can provide up to 100% financing.
6. What Does True 100% Funding Mean?
True 100% funding means we lend up to 100% of your purchase, rehab, and closing costs—up to 70% of the After-Repair Value (ARV)—when a joint venture is established between Upcycle Funds LLC and the borrower.
7. How long does it take to close a transaction?
Typically, about 14 business days after receiving all required documentation. However, gathering and submitting all required documents can take three to four weeks in some cases. The faster you submit your documents, the sooner we can close. We recommend planning for a 30-day 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 check the FHA Cap for your property’s 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 planned renovations are completed.
10. What Does Asset-Based Lending Mean?
Asset-based lending is a loan where approval is primarily based on the property’s value rather than the borrower’s credit history. While a borrower’s ability to repay the loan is considered, the property’s value determines the loan amount.
11. What are your Loan Terms?
- Loan amounts range from $30,000 up to the FHA Cap in the county where the property is located. Additional funding solutions are available based on your project needs.
- Rates start at 7% annualized interest with an origination fee from 0-3% and no prepayment penalties. (Rates are based on credit score, but credit score does NOT determine loan approval.)
- Loan terms: 6 months to 2 years for Fix & Flip projects and 30 years for Buy & Hold or Refinance options.
- One loan is approved per applicant until a proven track record is established.
12. Do I need an appraisal, and how much does it cost?
Yes, Upcycle Funds LLC requires an appraisal before closing. Appraisal costs range from $400 to $700, depending on the property’s location.
13. Is a Licensed & Bonded Contractor bid required?
Yes, in most cases, we require an itemized contractor bid from a licensed and insured contractor before processing the loan.
14. Is my information kept confidential?
Absolutely! Your privacy is our top priority. Any information you provide is completely confidential. If you want to work with a reliable, reputable company that values professionalism, integrity, and respect, you’ve come to the right place!
Still Have Questions?
We’re happy to help! Contact us today to discuss your real estate financing needs.