Is multifamily deal closing time reducing?

[Parag Goswami]

Spoke to a few lenders and apartment investors, I learned the average time it took to close a deal 24 months ago was about 90 days and this reduced to about 60 days in the last 12 months. Some deals close in as low as 30 days today. 

What's causing this decline in closing times? Lower interest rate market or investors taking risks without doing full DD?

[Brian Burke]

I think 2 years ago investors were more often using agency debt, which takes 45-90 days to close. Today it seems that many buyers are using bridge debt from debt funds. Those lenders can often close faster than the agencies. That doesn’t make them better, but could explain part of the reason for faster closings.

I typically use agency debt and close in 60 days.  But today I signed up an off-market deal that I have to close by the end of the year—so that’s like 38 days, some being holidays. It would be nearly impossible if it weren’t for the seller financing.