How fast can you close?

Question

I just saw a bandit sign on my way home from school in Indiana that said:

Sell Your House in 48 Hours! 
[Phone Number] 
WE BUY HOUSES.

I was just wondering how long it usually takes from the time you find a serious cash buyer to the time you close the deal. How realistic is 48 hours? How fast should I tell potential sellers that I can sell their house?

Brian Haskins · Answer

48 hours is not realistic at all for most people, although it could get done. Title has to be run and closing has to take place it can take anywhere from 2 days to two weeks. You can say what you want on that sign it's just a marketing ploy people won't hold you too it and if they ask about it just say its only in certain circumstances we are able to purchase your house in 24 hours. Give them the circumstance like say if you owned it free and clear and you already had clean title to it or something like that.

Brian Haskins

E. Jacobs · Answer

From what I've gathered in other threads here, yes, you should definitely be upfront with the seller about your intentions. In fact, it should be written into the contract so that there is absolutely no confusion about what you are doing. You don't want the seller thinking you are taking advantage of their distressed situation and getting rich off of their misfortune when they see the assignment fee at closing. Tell them you wholesale houses, you will be finding an end buyer, and you must be compensated for your time, risk, and expenses for running your company (probably mostly marketing). In order for this to happen, they must be willing to sell their house at a steep discount, but you will find them a buyer fast and without financing contingencies so that you can close ASAP. They won't have to repair their home or incur any other selling costs for your services. It SHOULD be a win-win for both parties. There's nothing to be secretive about here.

Account Closed · Answer

I suspect that "sold" means you get an offer and they can sign contracts within 48 hours, not that it will close escrow in 48 hours.

I'd say that 3 days business days is the fastest to get a property through escrow, if everything is already in order, taxes are not in arrears,  and no banks are involved.

If banks are involved, add a couple of weeks or even a couple of months to get through escrow.

I suppose if you are buying subject to, you could have it all done in 48 hours. Quit claim signed, no $ for the seller.

Justin S. · Answer

Probably both.  Most of the big wholesalers have their own capital to own them outright but I'm sure they assign a few now and then as well.  In AZ its hard to find equity, so most are picked up at auction with cash.

Justin S. · Answer

Yes, hardmoney is okay by me.

Jon Holdman · Answer

I'd bet that 99% of these signs that say they can close in 48 hours are nothing but "puffing".   Exaggerated advertising to draw people in.  Just like restaurants that say "best fried chicken in the state" or bars that say "coldest beer in town".

From a signed contract to closing, assuming no lenders (even hard money) involved, you probably could do it in Justin's timeline.  As soon as you start having to find a buyer, its going to take longer.   If that buyer's using any sort of loan against the property, even hard money, then you're looking at an appraisal, title reports, etc.  If everyone involved in a hard money deal is moving quickly, you might close in a week from the time when you have a fully signed contract.  If conventional lenders are involved, figure a minimum of a month.

So, if you're wholesaling, you need to know your buyers.  If you have honest to goodness cash buyer's and you've found a house that exactly meets their buyer's criteria (that is, you can call your buyer as you walk out the door and KNOW they will say yes), you can close in a matter of days.

OTOH, a house about six houses up the block from me was picked up by one of our big local wholesalers.  He moves quite a few properties.  It languished in his inventory for a month before he dropped it.  It eventually sold a couple months later as a HUD to a owner occupant.  So, no guarantee you can find a buyer at all.

If you're just starting, and don't have the cash to close deals yourself, I'd avoid making any promises.

Justin S. · Answer

It generally takes 2-4 days to do a title report, that is typically the long pole (if you are paying cash).

The investor probably has a good relationship with his title agent so they prioritize his/her work.

Brian Haskins · Answer

It may mean they own them or it may not. Some people do close and others just shop it around once they have it under contract. Not sure what the title of the post has to do with your question but on how fast you can close depends if you have cash  or if your borrowing it. You can close as quick as the title is done

Mike Tooley · Answer

So do you just explain to seller A the situation.  That you are a wholesaler looking for a buyer for their house?

Mike Tooley · Answer

So is this right?  When I go on to a wholesalers website, and they have 5 - 10 properties for sale.  Does this mean they own them free and clear (or with whatever creative financing) and they are just looking for another buyer to purchase them? Or is the wholesaler still tied up in some contract with seller "A"?  I've always wondered about this.

How fast can you close?

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