It’s a call we get now and again from existing borrowers, which typically starts in a panicked voice, “Jeff, do you have any money?” (I can tell from the tone where this one is going.)
“Yes, what’s going on?” (I already know)
“We just had a lender flake out on us.”
“When do you have to close?”
“Tomorrow.” (Naturally)
“Do you have the purchase contract, escrow instructions, and (most importantly) the preliminary title report?”
“Yes.”
“Great, please email them to me along with the property address. We’ll meet you there in two hours to do a walk-through and confirm your construction estimate.” (We once had a seller’s agent literally laugh in our faces on-site, claiming there is no way we’d be able to fund so quickly, and why are we wasting his time?)
Once back home, I pull comps and confirm the estimated ARV.
I used to have a loan doc template I would fill out, but now we use Lightning Docs. This takes two hours max and the resulting loan docs are sent to escrow.
Our borrower notifies escrow & title and updates the property insurance, noting us as the Mortgagee.
The next morning, our borrower signs everything at the escrow office. Escrow emails everything back to us. We review.
It’s been 24 hours. We wire money to the title.
Deal closes.
(In that one case, I get a contrite and very apologetic call from the agent who laughed at us.)
This process only works when you work with direct lenders (i.e., those who lend from their own balance sheet). Banks and brokers can’t generally work this fast.
If title is done we can close in 1 to 2 days no problem if its for one of our existing clients.
Since its true private money and I do all the valuations personally.. No appraisals etc.
On foreclosure rescue when it was legal in Or Wa I would routinely save these deals one day before the auction and sometimes an hour before.. it was hair on fire but we did lots of them that way and actually the vast majority.. the owners dont get real serious until about 48 hours to 72 hours before the prop is oging to sale. Of course we did not use a title company to close these did not get title insurance .. We did have customer service at my local title company though give me a date down over the phone.. there was some risk but hey thats the way it is when your doing foreclosure deals.
Lease Options are closed at the kitchen table so... 1 hour? Sure I had to order a title search and have the option recorded which usually takes a day-ish. But the deal is essentially closed by the time I walk out of the seller's house.
Lease Options are closed at the kitchen table so... 1 hour? Sure I had to order a title search and have the option recorded which usually takes a day-ish. But the deal is essentially closed by the time I walk out of the seller's house.
many parts of the US especially East coast markets title search are 3 to 14 days.. even on the west coast they can be 24 to 48 hours. We recorded our own documents and prepped our own deeds.. Now that wont work in many areas of the US when you go to resell as the title companies wont insure the transfer from the owner to us.. In our case they would based on knowledge of our company and sheer volume.. I owned a RE brokerage as well during that time so Title company got a LOT of orders.
Lease Options are closed at the kitchen table so... 1 hour? Sure I had to order a title search and have the option recorded which usually takes a day-ish. But the deal is essentially closed by the time I walk out of the seller's house.
many parts of the US especially East coast markets title search are 3 to 14 days.. even on the west coast they can be 24 to 48 hours. We recorded our own documents and prepped our own deeds.. Now that wont work in many areas of the US when you go to resell as the title companies wont insure the transfer from the owner to us.. In our case they would based on knowledge of our company and sheer volume.. I owned a RE brokerage as well during that time so Title company got a LOT of orders.
I think you tend to do far more complex deals than I do. 99% of my deals are first or second owner single family homes. They have hardly any transaction history. My lawyer usually gets the clean report back the same day or the next day business day. In nearly all cases it's just a formality that confirms the seller isn't lying about who's on title and what liens they've got.
I've closed same day when I've bought properties without title insurance (which I don't recommend) and you can close right away. But it's a calculated risk especially if it's inexpensive or bought from a family member, etc.
When I had a title company, I've had searchers embedded at the courthouse so we could rush it and it would typically be a day or two.
It’s a call we get now and again from existing borrowers, which typically starts in a panicked voice, “Jeff, do you have any money?” (I can tell from the tone where this one is going.)
“Yes, what’s going on?” (I already know)
“We just had a lender flake out on us.”
“When do you have to close?”
“Tomorrow.” (Naturally)
“Do you have the purchase contract, escrow instructions, and (most importantly) the preliminary title report?”
“Yes.”
“Great, please email them to me along with the property address. We’ll meet you there in two hours to do a walk-through and confirm your construction estimate.” (We once had a seller’s agent literally laugh in our faces on-site, claiming there is no way we’d be able to fund so quickly, and why are we wasting his time?)
Once back home, I pull comps and confirm the estimated ARV.
I used to have a loan doc template I would fill out, but now we use Lightning Docs. This takes two hours max and the resulting loan docs are sent to escrow.
Our borrower notifies escrow & title and updates the property insurance, noting us as the Mortgagee.
The next morning, our borrower signs everything at the escrow office. Escrow emails everything back to us. We review.
It’s been 24 hours. We wire money to the title.
Deal closes.
(In that one case, I get a contrite and very apologetic call from the agent who laughed at us.)
This process only works when you work with direct lenders (i.e., those who lend from their own balance sheet). Banks and brokers can’t generally work this fast.
