How To-Secure Funding For Investment Properties-Prepare For Cloing
You have found a good deal and your lender is on board. Now it is time to get to closing. The ease of this part in the process is really determined by the quality of the processes of your lender. Your lender should have a very basic and simple checklist of a few items they need like the contract, drivers license, LLC docs etc. If they are asking for excessive documentation and seem to be asking for more every day, you should have red flags going off. The hard money lender should be mostly concerned with the asset being the collateral, not the borrower. It certainly helps to have a borrower that is polished and experienced, but that should have been determined before the lender committed to the deal. Documentation and speed of closing are very important. A competent hard money lender will not need a formal appraisal to come back because they already determined the value of the property. They will probably have an inspector check to make sure the house is as stated by the borrower, but for the speed of closing, waiting for an appraisal can blow up a deal. Your lender should be able to close within 72 hours of agreeing to fund. If they can't do that, there is something clunky in the process that should be a red flag.
Ian Walsh
215.839.3271
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