How Often Do Good Deals Die Because Financing Takes Too Long?

Question

I’ve seen solid deals fall apart simply because funding couldn’t move fast enough. How often has timing killed a deal for you, and what was the holdup?

James Jones · Answer

More often than people think, and in my experience it’s usually not “financing speed” in isolation, it’s financing readiness.

Most deals that die from timing issues fail because one of these wasn’t locked in before the offer went hard:

Borrower docs not clean or consistent

Entity structure changing mid-deal

Appraisal expectations not aligned with the lender’s methodology

Exit strategy not clearly underwritten (refi vs sale vs hold)

When we’re moving fast, the capital stack is already decided before the contract is signed. Lender, backup lender, liquidity source, and worst-case close scenario are all mapped.

The irony is the best deals usually require the fastest execution, but they’re often pursued by investors who haven’t standardized their financing process yet.

Speed comes from preparation, not pressure.

Brian Hollingsworth · Answer

Once you have consistent sources and the deals look good this shouldn't be and issue. As my mentor always says "The hot girl doesn't have to look for a date to the prom". Are the deals too thin and more proof of ARV or construction estimates required on your "holdups" or is the issue their ability to liquidate fast enough?

Brian

Chris Seveney · Answer

What we see is people always trying to squeeze every last penny out of every deal which in the long run can hurt more than help because if someone were to build a great relationship with their lender - they could close very quickly. we have a borrower who does this and comes to us when it's more complex and goes elsewhere for easy deals and he wants to be top priority which he is not because we know his MO. We process him like everyone else and he wants special treatment. We told him if you brought us more business and didn't shop every single deal we could do better. Relationships mean a lot more than people think

Jaycee Greene · Answer

But sometimes the hot girl never gets asked to go to the prom because everyone assumes she's already been asked...and make sure you're not using a square peg and trying to put it in a round hole!

Bo Smith · Answer

Timing kills more deals than bad numbers tbh. One thing that saved me multiple times: pre-approve your funding sources AND have backup options lined up before you even make offers. Hard money, private lenders, portfolio lenders - get those conversations going early. What's been your biggest timing bottleneck - the funding search or the actual approval process?

Drago Stanimirovic · Answer

James, couldn’t agree more  aggressiveness without structure leads to chaos. The most efficient closers I’ve worked with treat financing like an operations system, not a reaction.

Drago Stanimirovic · Answer

Completely agree, Chris. The relationship with your lender is a strategic asset, not a commodity. When investors build real trust and consistency, that’s when speed becomes a true advantage. A lot of pain comes from treating every deal like a one-off.

How Often Do Good Deals Die Because Financing Takes Too Long?

Most Popular Reply