Loans that hold open the window of opportunity. |
| Q: | I've been turned down at banks and with regular mortgage brokers, is applying for LibLoan worth my while? |
| A: | It might be. We don't look at loans the same way banks do. Typically, they are packaging a loan to sell or have to get it through some underwriters who are trained to turn down loans. We are a private, Atlanta-based commercial equity lender. We are our own underwriter and we make loan decisions based on our understanding of the real estate market and the values of properties and you. We know that you are more than just a statement or a column of numbers. We will look hard to understand all the intangibles. But the main reason to call us is that our loan decisions are based on commonsense - if the properties worth it, it is probably worth your while. |
| Q: | What if one property won't carry the loan ratio, can you look at more than one and cross-collateralize? |
| A: | Sure, we do it all the time. |
| Q: | You are private, so are your interest rates high? |
| A: | We have been doing this for over 25-years and we feel like we have a good idea of what our risks are and what it costs - the interest rates are just that - the better the property and credit, the lower the rate. |
| Q: | My need is just for a short time - until something good happens and I can re-finance. Maybe I shouldn't be saying that, but I did - now, are you interested in the deal? |
| A: | Most LibLoans are just like you described - they are to buy some time. In fact, most of our loans are successfully re-financed and paid off in less than 2-years. |
| Q: | Re-financed, huh? So if my circumstances change, are you interested in re-financing your own loan? |
| A: | We do it all the time. |
| Q: | What if I have a loan with you and it matures? At that point what are my options? |
| A: | Upon maturation, we are happy to modify most loans, assuming that payments have been made reasonably on-time. |
| Q: | If my application for credit is denied, do I have a right to a written statement of the specific reasons for the denial. |
| A: | Yes, if your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please contact us by calling 404-256-8600 or by writing to LibProperties, Ltd.; 175 Cliftwood Drive; Atlanta, GA 30328 within 60 days from the date you were notified of our decision. We will send you a written statement of reasons for the denial within 30 days of receiving your request for the statement. |
| Q: | Do I get an Equal Credit Opportunity Act Disclosure? |
| A: | Sure, it's right here: NOTICE: The federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is the Federal Trade Commission, Equal Credit Opportunity, Washington, D.C. 20580. |
| Q: | Are you a lender? |
| A: | Yes, we are a lender. We close the loan, we fund the loan, we service the loan. Bottom line: we sign the check . |
| Q: | Your fees appear to be out of line with the residential loans I usually am involved with. Is this legal? |
| A: | Absolutely. the Georgia commercial real estate loan laws differ significantly from the residential ones you are familiar with. |
| Q: | When should I order the appraisal? |
| A: | Don't yet. Over 90% of the time we do not order a documented appraisal until after closing. We can operate this way in most cases because of our familiarity with Georgia real estate. After closing we use one of our approved appraisers to document an appraisal for our files. If you have an appraisal that was done within the past year, we are willing to review and consider for use in this loan, however, if you have not yet ordered one, there is no need to do so on our behalf until we request it. |
| Q: | Once I am ready to refinance, do you have a conventional takeout loan within your company? |
| A: | No, Lib Properties deals strictly with loans in the non-conforming market. LibLoans are usually structured so that once you obtain conventional financing you can take us out fairly painlessly. |
| Q: | When you say commercial loans, what do you mean? |
| A: | Restaurants to recording studios, warehouses to gas stations, anything but boarding houses, adult entertainment sites, and owner-occupied single-family residences (SFRs). For a comprehensive list of commercial properties see this page in the loan program section. |
| Q: | How long have you been in business? |
| A: | Lib Properties Ltd. has been in business for over twenty five years. We are a small commercial lender, and like the company, the owners have been in Atlanta for a long time (their entire lives). |
| Q: | What are your office hours? |
| A: | 9AM - 5PM Mon-Thurs 9AM - 4PM Fri |
| Q: | Do you allow seller subordination? |
| A: | Yes. Up to 95% Combined Loan to Value |
| Q: | Do you fund large subdivision development? |
| A: | Yes. But our largest loan will be $4million. |
| Q: | Do you actually fund loans for borrowers with scores below 500? |
| A: | We fund loans based on the combination of collateral, credit, and experience as described in our page about underwriting. With other redeeming factors present, borrowers with credit scores below 500 will receive funding. |
| Q: | Do you do 100% financing on rehab loans? |
| A: | We fund up to 70% of the After Repair Value on renovation loans. In some cases this will mean 100% financing of purchase price. 1st time borrowers usually are required to bring some funds to closing ($5,000 - $10,000). |
| Q: | Do you lend on Primary Residences? |
| A: | No. Lib Properties Ltd does not lend on single family residence owner occupied properties. |
| Q: | Do you fund construction to permanent loans? |
| A: | If by construction to permanent you mean that ultimately this will be the borrowers primary residence, then no, Lib does not fund such loans. |
| Q: | What kind of amortization do you offer? |
| A: | Most loans are actually interest only and therefore do not have amortization rates. Another product we offer is a 5 year balloon note with a 15 year amortization. |
| Q: | What are your closing costs? |
| A: | Different property types and loan amounts require different amounts for closing. Here is a brief synopsis:
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| Q: | Do you loan to foreign nationals? |
| A: | Provided that they have a green card, yes. |
| Q: | How fast can you close a loan? |
| A: | Our record is 9AM application with a 4PM closing (and title was obtained in this timeframe as well). We would like to keep using our attorneys services, so we advertise 10 days. |
| Q: | Is Lib really a hard money lender? |
| A: | Hard money has often been a derogatory term. Our rates are above the banks’, however, we operate above board, in an open and honest business fashion. We heavily consider the value of a property in our underwriting, but we also consider the person we are making the loan to. See our mission statement to further understand why we distance ourselves from this term. |
| Q: | Why do you only lend in the state of Georgia? |
| A: | We look at every property we lend on. Traveling outside of Georgia can be time consuming and costly to prospective borrowers. We keep it simple and stay within or close to the state borders. On occasion we do look at larger deals ($500k+) in adjacent states. |
| Q: | I am with a brokerage. Are we approved with your company? |
| A: | Unlike residential loans, in the state of Georgia, individuals can broker commercial loans without a license. That being said, no approval is necessary. |
| Q: | I would like to submit a loan to your company through my company, and then broker it in my name individually. How can I do this? |
| A: | In order to allow for this, Lib Properties Ltd must receive written permission from your broker that this is acceptable. |
| Q: | Do you do stated loans? |
| A: | We do loans that we call "low doc". This term reflects our flexible mindset. We require some documentation, however, some items may be waived upon request. |
| Q: | Do you offer yield spread? |
| A: | No. All fees are clearly defined on the settlement statement. For more information on broker compensation, please contact us. |
| Q: | Are there any up front fees paid to Lib Properties? |
| A: | No. There is no financial commitment required by the borrower to Lib Properties until closing. Title deposit is collected after approval, and these funds are immediately forwarded to our attorney. Construction, renovation, and development loans will require a setup and review fee to be paid to the inspector directly. Some stipulations may require payment by the borrower to an outside entity in order to obtain items such as surveys or environmental studies. Properties outside the greater Atlanta metro area may also incur an inspection fee. |
| Q: | What do you mean by cross-collateralization? |
| A: | Let's say you wanted to buy property "A" for $100,000. You have $5,000 in cash and Lib has agreed to a $70,000 loan on the property. You are still short $25,000. So what can you do? Well, property "B", which you already own is also worth $100,000 and you owe $45,000 on it. According to our 70% loan to value, there is still $25,000 of equity in property "B". Lib would close a loan for a total of $95,000 ($70k from property "A" + $25k from property "B"). |
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Lib Properties Ltd. | 175 Cliftwood Dr. Atlanta, GA 30329 |