Funding timing vs deal timing — lessons learned

Funding timing vs deal timing — lessons learned

Member since 2015 · 86 posts · 44 votes

One thing I noticed this year is how often deals get delayed not because of numbers, but because funding wasn’t aligned early.

For those actively investing, when do you typically start thinking about financing—before or after going under contract?

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Hinton, WV · Member since 2025 · 11 posts · 2 votes
7mo

Most deal delays I see aren’t underwriting issues, they’re capital alignment failures. Financing gets treated as something to “figure out later,” and by the time a contract is signed, optionality is already gone.

In my experience, the best outcomes happen when financing is discussed before LOI, not after. Once you’re under contract, you’re no longer picking the right capital you’re taking whatever can still execute on the clock.

Curious where people land on this. do you line up financing early, or rely on the deal itself to open doors  once it’s signed?

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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    8mo

    Both. Need to get REI approved before deal, then actual deal approved after contract. Most of the time, the seller won't sign a contract unless there is funding in place...or at least some sort of insurance that funding will be in place. If funding isn't in place, then the deal is contingent on buyer getting full funding approved by a specific time or the deal is not guaranteed. That means the seller can sell to someone else. If, however, the seller has not sold the property by the time the buyer has gained funding (this is after the time is up), the deal CAN go through but doesn't have to go through. It would be at the seller's option. This is because the seller may have found a better deal that is on their funding clock, or one that is already funnded.

  • Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    8mo

    Hi Melinda,

    For me, having funding lined up early has been a game-changer. It helps avoid delays and gives the confidence to move quickly when a deal fits my criteria. I usually touch base with a few lenders ahead of time so I know what’s realistic, which keeps the process smooth once I go under contract.

  • Hinton, WV · Member since 2025 · 11 posts · 2 votes
    7mo

    Most deal delays I see aren’t underwriting issues, they’re capital alignment failures. Financing gets treated as something to “figure out later,” and by the time a contract is signed, optionality is already gone.

    In my experience, the best outcomes happen when financing is discussed before LOI, not after. Once you’re under contract, you’re no longer picking the right capital you’re taking whatever can still execute on the clock.

    Curious where people land on this. do you line up financing early, or rely on the deal itself to open doors  once it’s signed?

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