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Taylor Doucet
  • Investor
6
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Closing Notes, Faster

Taylor Doucet
  • Investor
Posted

Typical mortgage note transactions take 30–45 days (720–1,080 hours). Even well-prepped deals usually take 14–21 days (336–504 hours).

We ran a case study using our platform. When everything was ready—title, docs, buyer/seller coordination—we closed a deal in just 43 hours. That’s a time savings of 677+ hours versus the industry average.

The question for this community: How long does it usually take you to close a note?
Are 30–45 days standard, or do you have hacks to move faster?

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Doug Smith
  • Lender
  • Tampa, FL
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Doug Smith
  • Lender
  • Tampa, FL
Replied

That is an extraordinarily long time to close on a note. At least with us, we do the due diligence before we go under contract on it. We also tend to only buy from sources we know really well. They'll say "hey, we've got this NPL on 123 Main Street in Bugtussle, IN...wanna buy it", we'll get into the "deal room" (drop box file or whatever with all the docs), we'll review that they have including the note, mortgage, assignment chain, alonges, collection notes, etc. We'll pull up the court records and send someone by to give us a condition report (notice I didn't say BPO...we are pretty good with determining value if we know condition). We then back into a price based on our intended profit margin, time value of money, an analysis of worst case "what if they pay us and what if they don't", the time in the jurisdiction to get the property back through foreclosure if necessary and our time value of money associated with that. That normally takes us 48-72 hours. Once we're done, we sign the agreement and close after that. It should not take that long to close on a note deal. What is taking you that long to do to close a note deal?

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