How fast can you close on my loan when I find a good deal?
This is a great question, and one we see quite frequently. As a Private Hard Money Lender, Glassridge can almost always close on your real estate investment loans faster than any bank could.
To say an exact figure, however, is tricky. Not every loan is the same, so when asking “How fast can you close on my real estate investment loan?”
The short answer, unfortunately, is:
To keep things simple, we’ve boiled it down to the 3 most important factors upon which your loan’s fast closing depends.
Factor #1: The Deal Itself
First and foremost, it depends on The Deal Itself.
For example, if all you’re looking to do is finance a Single Family Fix & Flip Loan at 60% – 70% LTV, on an obviously good deal (eg: your Purchase Price is only 60% of the As Is Value), the process is about as quick & simple as possible.
On a quick & simple Single Family Fix & Flip, the closing process will be basically only limited by however long it takes to get an Inspection and/or Appraisal. This typically ranges from 7 – 10 business days.
On the other hand, if you’re financing a high leverage multi-unit Commercial Real Estate Loan or ground-up construction project, the documentation, due diligence, and closing processes will all take longer.
For complex Commercial or Construction Loans, once all docs have been gathered, it’s worth budgeting 14 – 28 business days from start to finish for these more specialized types of real estate financing.
Regardless of the deal, we will still almost always be faster than closing on typical bank financing, and can definitely close on a wider variety of properties & loan scenarios!
Factor #2: Borrower’s Docs
By far, the biggest unnecessary delay that prevents many deals from closing fast is whether the Borrower can quickly submit all the necessary documents to close.
The Deal Itself can’t be helped: if you’re buying a 150 unit apartment building that requires multiple upgrades & renovations, closing on financing will take some time… no matter what.
On the other hand: being prepared with all your own documents as a Borrower is something over which you have near total control. If you’re an experienced Borrower who has closed on many real estate loans in the past, this is not news.
Every real estate loan, even our specialized Low Doc loans, still will require several important documents. To expedite the process, some of the most commonly required docs to start gathering even before you apply include:
- Entity formation & tax docs.
- Recent bank statements.
- 2 – 3 years tax returns.
- Purchase and sale agreement (purchase) or deed & title (refi).
- A voided check.
- A scan of your Drivers License or Passport.
These are documents that might not be required for every loan, but they’re commonly requested often enough that it makes sense to have them on-hand in a digital format, ready to go to ensure your loan closes fast when you find a hot deal.
Factor #3: Honesty & Candor
One of the most easily avoidable disruptions to a loan’s fast closing is dishonesty or concealment of important details about the Borrower or Property.
As both a Lender and Real Estate Investor, I find it hard to believe that anyone would think it’s possible to lie about verifiable details like FICO scores, previous transactions, or bank balances, and still get away with it this day & age… but we see it all the time!
Please be honest & candid with your Lender from the very first steps of the Pre-Qualification process, and you’ll ensure that your deal will flow and close smoothly.
We’ve seen deals get wrecked after Inspections & Appraisals, practically on the closing table, because some Due Diligence research by our Closing Department uncovered undisclosed key facts about the Borrower or The Deal Itself, or even worse: actual, provable dishonesty in the application process.
Any of these cannot only hold up your deal, prevent a fast closing (or any closing), it can also result in losing the ability to Borrow from that Lender again in the future, and even potential legal action!
Please, be honest and candid in your Pre-Qual & Application process. Your lies, half-truths, exaggerations, or attempts to keep secrets will be uncovered almost always by any experienced Lender.