Seller financing deal closing time

[Charlotte Dunford]

How fast can a seller financing 50 lots mobile home park deal close?

[Jim Johnson]

If the deal is seller financed your probably only constrained by your longest inspection lead time and completion. Probably a Phase 1. If you really pushed, and had someone that could do the phase 1 quick, I would say 15 - 20 days.

Strictly on the financing side, it only takes a few days to produce the owner financing papers. You do not 'need' an appraisal, or Phase 1, or even title work. I am not saying you should not have these things, but in an owner financed deal you would not be 'required' to have them. Many inspection type reports are required by the Title Insurance Company and the Lenders. 

So Mike M said to do things right- but 'right' is not the same for every deal and everyone. The property will dictate much of what you want prior to closing. The more experience you have in the age of properties, and the things that might be issues- probably the faster you can close a deal comfortable on your side as the buyer. 

Remember, many in this business either do our own due diligence or have staff that does it for us. We have sort of a template of what gets done and we can even overlap the processes for the right deal if closing quick is important. If the preliminary offsite checks go well, and for the most part we probably know this in the first day or two, we can do the onsite and offsite parts concurrently.  For someone doing their first deal, or even someone that is experienced but wants to really take their time and do the inspections linear the process will take much longer. When we are  trying to push dates quick, we have already called our Phase 1 people and other inspectors for items we do not do ourselves prior to even getting the contract submitted. We are nailing these people down on times so we know how to write the dates into the contract. 

If speed is important things can move very quickly... if it is not- take your time, be careful and you will be less likely to miss something and be... surprised... down the road. Quick closings are a bit stressful to say the least. They also require a lot of time and money out the door quickly, and it might be wasted if that Phase 1 comes back with issues and the deal crashes. You will have money into all the rest of the things needed to close- and you will only get experience out of the deal... There is more money and time at risk in a deal that must close quick.