Fast Lending

Last updated: January 14, 2025

Speed to close is one of the most important components of a successful real estate investing business. Whether you're purchasing or refinancing, the faster you close, the more deals you'll do.

Speed to close helps you grow your investing business in the following ways:

1. Win more deals

Sellers don't like to wait. Speed and certainty to close is often more important than your offer price. By confidently offering a fast close -- let's say 10 days for hard money, 15 days for DSCR loan), you'll dramatically increase the likelihood of an accepted offer.

2. Recycle capital faster

We specialize in cash out refi no seasoning transactions so we are well aware of just how important it is to complete a refinance ASAP. The faster you pull out cash from your fix and rent or cash deal, the faster you

How to close loan faster?

Choose a fast lender

Optimize your offer acceptance win rate (purchases) and your capital efficiency (refinances) with fast lender. A go-to fast, reliable, competitive lender should be a core member of your investing team.

Keep your docs organized

Keep your pertinent documents in a secure folder such as Google Drive or Dropbox.

• Government issued ID -- drivers license, passport, green card
• Borrowing entity docs -- articles of organization, operating agreement or bylaws, certificate of good standing, IRS EIN letter,IRS Form W-9
• Insurance docs -- declarations or Evidence of Insurance or Certificate of Insurance, paid in full receipt or invoice to be paid on the settlement statement
• Lease agreement -- if applicable, one for each leased unit
• Security deposit receipt -- if applicable, can be property management ledger or bank statement showing the security deposit was deposited into your account
• Rent receipts -- if applicable, evidence of up to your 3 most recent months of collected rent to can be property management ledger or bank statements
• Property management agreement (if applicable)
• Bank Statements -- 2 most recent bank and/or brokerage and or retirement account statements. Accounts can be in personal name or in the name of your borrowing entity
• Letter of Explanation -- commonly referred to as "LOE" or "LOX", this is a simple letter that addresses large deposits or items on your credit or background report such as bankruptcy, foreclosure, late payment. If there is something that will come up in underwriting, you'll be saving yourself and your lender a lot of time by having this in your file ready to go.

Having the above items ready to provide to your lender will save you a lot of time and result in a faster close.

Pay for and schedule your appraisal inspection

One of the surest causes of delay is slow payment of your appraisal invoice which is typically sent by an appraisal management company (AMC) through which your lender orders their appraisal. AMCs cannot schedule the appraiser's inspection of your property until the invoice is paid. Once the invoice is paid, make sure you are flexible to accommodate the soonest available inspection and be sure to provide your tenants, if any, with notice.

Property access

For loans that require appraisal inspection, make sure all units and rooms are accessible. Be sure to provide your tenants with notice and have a representative, either yourself of your property manager, on site to make sure the appraiser has access to the entire property. Many times appraisers will not have access to the property and wind up charging a trip fee and rescheduling.

Property condition

For loan programs that are sensitive to property condition such as DSCR loans which must have an appraisal condition rating of C1 - C4, make sure any deferred maintenance is cured prior to appraisal inspection. The most common issues noted on appraisal reports include wood rot, mold and mildew, missing smoke detectors, electrical outlets that are not to code (GFCI), damaged drywall.

Scope of Work

If you're getting a hard money loan, you want to walk the property with your contractor as soon as possible, refine and finalize your scope of work and provide it to your lender without delay. Your lender and the appraiser will use this to determine the property's ARV.

Insurance approval

Most if not all mortgage loan programs have insurance guidelines which can be rather strict. It's important to work with an insurance agent that specializes in commercial loan programs (i.e. landlord insurance and fix and flip insurance). One of the greatest sources of delay and frustration is slow insurance approval and this can be successfully avoided by partnering with an insurance vendor that understands insurance guidelines for these loan programs and is tech savvy to complete the review process in the lender's portal.

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How long does it take to close a DSCR loan?

DSCR loans typically take 25 - 30 calendar days to close, though they can be closed in as little as 10 calendar days as long as there are no delays with borrower action items, property appraisal or title work.

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How long does it take to close a hard money loan?

Hard money loans (i.e. "Fix and Flip", "Fix and Rent", "RTL") usually close faster than DSCR loans. Some lenders do not require a 3rd party valuation (i.e. appraisal, BPO). which can save time. The most common cause of delay for money loans

How long does it take to close with a private lender?

The best private lenders can consistently close in under 30 calendar days provided there are no borrower, appraisal or title delays. Private lenders vary from wealthy individuals to sophisticated institutions and generally have guidelines and requirements of varying strictness. An unsophisticated private lender may not require appraisal and therefore be able to close 5 to 10 days faster than a private lender that requires an appraisal.

Comparing Closing Times by Lender Type

There's an ongoing debate about the difference between a private lender, hard money lender, and a private money lender. In practice, these terms are synonymous and used interchangeably with private lender becoming the standard naming convention. On top of this, most DSCR lenders would consider themselves to be private lenders, especially those that also offer hard money ("fix and flip", "fix and rent", "RTL", interest only loan program).

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Fast lending from OfferMarket

OfferMarket is a rental property investing platform. Membership is entirely free and includes access to the following:

🏠 Off market properties
💰 Private lending
☂️ Landlord insurance rate shopping
💡 Community & insights

Our mission is to help you build wealth through real estate. If you are not already a member, we hope you will accept our invitation to join us!

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