How Often Do Good Deals Die Because Financing Takes Too Long?
New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 457 votes
How Often Do Good Deals Die Because Financing Takes Too Long?
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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votesQuote from @Brian Hollingsworth:
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
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!
11 Replies
- Cleveland, OH · Member since 2015 · 31 posts · 9 votes8mo
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
- 8moJaycee GreenePro MemberReal Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
Quote from @Brian Hollingsworth:
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
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!
- New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 457 votes8mo
Quote from @Brian Hollingsworth:
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
You’re right, Brian.Tight deals often demand deeper scrutiny. What I’ve found, though, is even well-structured deals with solid ARVs and scope can fall through when lenders aren’t aligned or nimble. It’s not always about liquidity, it’s about coordination and readiness on all sides.
- New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 457 votes8moJaycee, great analogy, assumptions kill more deals than bad numbers do. Also, love the peg comment. Structuring and matching the right capital to the right deal is half the game, especially when the clock is ticking.
Quote from @Jaycee Greene:
Quote from @Brian Hollingsworth:
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
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!
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes8mo
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
7e investments53 Reviews- New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 457 votes8mo
Quote from @Chris Seveney:
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 thinkCompletely 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.
- 8moJames JonesPro MemberInvestor · Collierville, TN 38017 · Member since 2017 · 644 posts · 470 votes
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.
- New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 457 votes8moJames, that’s a clinic. Readiness is often overlooked, but it’s everything. I’ve seen investors with sharp strategies lose out because entity docs or liquidity sources weren’t dialed in. Your point about the best deals requiring the fastest execution is dead-on. Speed is built before the deal shows up.
Quote from @James Jones:
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.
- 8moJames JonesPro MemberInvestor · Collierville, TN 38017 · Member since 2017 · 644 posts · 470 votes
Quote from @Drago Stanimirovic:
James, that’s a clinic. Readiness is often overlooked, but it’s everything. I’ve seen investors with sharp strategies lose out because entity docs or liquidity sources weren’t dialed in. Your point about the best deals requiring the fastest execution is dead-on. Speed is built before the deal shows up.Quote from @James Jones:
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.
Exactly right. Speed is almost always a reflection of preparation, not aggressiveness. The work happens long before the deal shows up. - New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 457 votes8mo
Quote from @James Jones:
Quote from @Drago Stanimirovic:
James, that’s a clinic. Readiness is often overlooked, but it’s everything. I’ve seen investors with sharp strategies lose out because entity docs or liquidity sources weren’t dialed in. Your point about the best deals requiring the fastest execution is dead-on. Speed is built before the deal shows up.Quote from @James Jones:
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.
Exactly right. Speed is almost always a reflection of preparation, not aggressiveness. The work happens long before the deal shows up.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.
- 8moBo SmithPro MemberHinton, WV · Member since 2026 · 1k+ posts · 373 votes
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?
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