Rental Property Investor · Fort Worth, TX · Member since 2021 · 31 posts · 8 votes
BLUF: Was supposed to close an off market cash purchase in <10 days and we're now going on 3 weeks. The hold up is at the title company. How can I approach a deal to ensure the fastest close possible in the future (beside waiving inspection).
The property is a BRRRR and I'd lined up a contractor who'd lined up sub-contractors and I've just had to have him cancel the drywall team and a few others because I can't hand him the keys since I haven't closed. This means his initial quote and timeline may no longer be accurate when I am able to actually get him into the property to start work.
Is this rare? Or are closing dates frequently un-met? Should I not even talk to a contractor until I have keys in hand? What steps in a BRRRR can you run concurrently and what should be left sequential?
Feeling frustrated with myself. Any advice would be appreciated.
Akron, OH · Member since 2022 · 19 posts · 10 votes
4y
Though sometimes pushed back, closing dates are usually very accurate. You lose a lot of insurances when you do not use an agent and it is an off market property.
Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
4y
What's the title hold up? If it's an actual issue with the title then there's really not too much you can do until the seller is able to work through the issue with the title co. If it is just slow to complete the closing then you just need to set expectations better all around.
Generally 10 days from start to finish is pretty aggressive since the title company is really only getting 7-8 days to do everything. They're not even aware there is a sale on day 1 and you execute a contract and send it to them to get into their workflow. So they start day 2 and are supposed to be 100% complete day 9 so day 10 you can settle...a couple days for a prelim, payoff quote etc...and they aren't left with a lot of time to do the other stuff.
I know the 10 day close sounds good, but realistically I'd probably try and set it for more like 15-21. And you should have the conversation with your Title Co. and ask, what is a reasonable timeframe to close in assuming all cash, no title issues etc? 10 days may be totally do-able...but you may need to be a repeat client to have the relationship necessary for that kind of service.
Though sometimes pushed back, closing dates are usually very accurate. You lose a lot of insurances when you do not use an agent and it is an off market property.
Thanks for the insight. I'll set clearer expectations and do a little more front end communication next time.
What's the title hold up? If it's an actual issue with the title then there's really not too much you can do until the seller is able to work through the issue with the title co. If it is just slow to complete the closing then you just need to set expectations better all around.
Generally 10 days from start to finish is pretty aggressive since the title company is really only getting 7-8 days to do everything. They're not even aware there is a sale on day 1 and you execute a contract and send it to them to get into their workflow. So they start day 2 and are supposed to be 100% complete day 9 so day 10 you can settle...a couple days for a prelim, payoff quote etc...and they aren't left with a lot of time to do the other stuff.
I know the 10 day close sounds good, but realistically I'd probably try and set it for more like 15-21. And you should have the conversation with your Title Co. and ask, what is a reasonable timeframe to close in assuming all cash, no title issues etc? 10 days may be totally do-able...but you may need to be a repeat client to have the relationship necessary for that kind of service.
So they called me yesterday and it was two part an error with the paperwork and also the seller left country for a week or so and he's old school and won't sign anything digitally. None of it was communicated to me however so I was just left in the dark waiting calls back. Thanks for the input. I'll temper my expectations on the next one and set a more realistic timeline with increased comms. I appreciate your response!