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Updated over 4 years ago,

User Stats

122
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11
Votes

How long does it take on average to close a real estate deal?

Bellman Tumasang
Posted

How long do you usually take to close a deal from beginning to end?

1 - Finding and underwriting the deal (Are you email lists of brokers who mail you deals every now and then and if so what makes a deal worth pursuing does the broker send the property’s financials you just plug into excel and if it looks good you tour the property and how)

2 - Touring the property (How long do you take to tour the property maybe a week and what do you look for, damages, do you speak to tenants to assess them or ask what they pay in rent, do you look at any improvements that may need to be made?)

3 - Financing the property (Did you have to get a preapproval to know how much you could borrow and what properties you could afford before you started browsing deals?, 

Do you send your lender your underwriting, do you form the LLC's to take title to the property and financing etc, Discussing interest rates and nonrecourse/recourse loans,

How long does it take to fully complete the financing and receive the funds and how much closing time does the seller give you and can you extend that time if the financing for example is taking a while to close?)

4 - Closing (After all paperwork is done and entities are formed and loan proceeds are received etc and you’ve bought the property and exchanged keys.

How do you tell your tenants your the new owner and they should pay you rent or you perhaps increase it and you want them to perhaps pay by cash, cheque or an online portal, How would you fire the existing property manager if they were doing a bad job and you wanted to get a new one or negotiate fees etc?)

Please state what is required for each process and how long reasonable each take and how long in total it would take me to buy a deal perhaps maybe 1-3 months.

Sorry for the long post. Please do your best to answer each question or tag someone who does please.

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