Closing Notes, Faster
Investor · Member since 2021 · 18 posts · 6 votes
Closing Notes, Faster
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Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
6moThat is an extraordinarily long time to close on a note. At least with us, we do the due diligence before we go under contract on it. We also tend to only buy from sources we know really well. They'll say "hey, we've got this NPL on 123 Main Street in Bugtussle, IN...wanna buy it", we'll get into the "deal room" (drop box file or whatever with all the docs), we'll review that they have including the note, mortgage, assignment chain, alonges, collection notes, etc. We'll pull up the court records and send someone by to give us a condition report (notice I didn't say BPO...we are pretty good with determining value if we know condition). We then back into a price based on our intended profit margin, time value of money, an analysis of worst case "what if they pay us and what if they don't", the time in the jurisdiction to get the property back through foreclosure if necessary and our time value of money associated with that. That normally takes us 48-72 hours. Once we're done, we sign the agreement and close after that. It should not take that long to close on a note deal. What is taking you that long to do to close a note deal?
14 Replies
- Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes6mo
That is an extraordinarily long time to close on a note. At least with us, we do the due diligence before we go under contract on it. We also tend to only buy from sources we know really well. They'll say "hey, we've got this NPL on 123 Main Street in Bugtussle, IN...wanna buy it", we'll get into the "deal room" (drop box file or whatever with all the docs), we'll review that they have including the note, mortgage, assignment chain, alonges, collection notes, etc. We'll pull up the court records and send someone by to give us a condition report (notice I didn't say BPO...we are pretty good with determining value if we know condition). We then back into a price based on our intended profit margin, time value of money, an analysis of worst case "what if they pay us and what if they don't", the time in the jurisdiction to get the property back through foreclosure if necessary and our time value of money associated with that. That normally takes us 48-72 hours. Once we're done, we sign the agreement and close after that. It should not take that long to close on a note deal. What is taking you that long to do to close a note deal?
- Investor · Member since 2021 · 18 posts · 6 votes6mo
Quote from @Doug Smith: Thanks for sharing your workflow—48–72 hours for pre-vetted notes makes sense for experienced buyers. My case study looked at multiple data points across sellers, buyers, and deal types..ect Based on that, we found that when all documents, title, and approvals were ready, a deal could close in just 43 hours. This is an average from the study, not a one-off, and highlights how centralized workflows can dramatically reduce time versus typical industry averages of 14–21 days for well-prepared deals.
That is an extraordinarily long time to close on a note. At least with us, we do the due diligence before we go under contract on it. We also tend to only buy from sources we know really well. They'll say "hey, we've got this NPL on 123 Main Street in Bugtussle, IN...wanna buy it", we'll get into the "deal room" (drop box file or whatever with all the docs), we'll review that they have including the note, mortgage, assignment chain, alonges, collection notes, etc. We'll pull up the court records and send someone by to give us a condition report (notice I didn't say BPO...we are pretty good with determining value if we know condition). We then back into a price based on our intended profit margin, time value of money, an analysis of worst case "what if they pay us and what if they don't", the time in the jurisdiction to get the property back through foreclosure if necessary and our time value of money associated with that. That normally takes us 48-72 hours. Once we're done, we sign the agreement and close after that. It should not take that long to close on a note deal. What is taking you that long to do to close a note deal?
- Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes6mo
Quote from @Taylor Doucet:
Quote from @Doug Smith: Thanks for sharing your workflow—48–72 hours for pre-vetted notes makes sense for experienced buyers. My case study looked at multiple data points across sellers, buyers, and deal types..ect Based on that, we found that when all documents, title, and approvals were ready, a deal could close in just 43 hours. This is an average from the study, not a one-off, and highlights how centralized workflows can dramatically reduce time versus typical industry averages of 14–21 days for well-prepared deals.
That is an extraordinarily long time to close on a note. At least with us, we do the due diligence before we go under contract on it. We also tend to only buy from sources we know really well. They'll say "hey, we've got this NPL on 123 Main Street in Bugtussle, IN...wanna buy it", we'll get into the "deal room" (drop box file or whatever with all the docs), we'll review that they have including the note, mortgage, assignment chain, alonges, collection notes, etc. We'll pull up the court records and send someone by to give us a condition report (notice I didn't say BPO...we are pretty good with determining value if we know condition). We then back into a price based on our intended profit margin, time value of money, an analysis of worst case "what if they pay us and what if they don't", the time in the jurisdiction to get the property back through foreclosure if necessary and our time value of money associated with that. That normally takes us 48-72 hours. Once we're done, we sign the agreement and close after that. It should not take that long to close on a note deal. What is taking you that long to do to close a note deal?
Given, I handled special assets for banks prior to the last crash. We started this company with tons of formal collections and complex NPL management in actual financial institutions, so we can move pretty quickly. Provided you have the right info out of the gate and you know what your'e doing, it's quick.
- Investor · Member since 2021 · 18 posts · 6 votes6mo
Quote from @Doug Smith:That makes sense. When the docs are clean and you’re dealing with experienced buyers who understand the collateral and jurisdiction, things move quickly. That was actually one of the biggest patterns in the case study as well, prepared information upfront compresses timelines dramatically. Im working on a new case study to compare the time between experience and new investors.
Quote from @Taylor Doucet:
Quote from @Doug Smith: Thanks for sharing your workflow—48–72 hours for pre-vetted notes makes sense for experienced buyers. My case study looked at multiple data points across sellers, buyers, and deal types..ect Based on that, we found that when all documents, title, and approvals were ready, a deal could close in just 43 hours. This is an average from the study, not a one-off, and highlights how centralized workflows can dramatically reduce time versus typical industry averages of 14–21 days for well-prepared deals.
That is an extraordinarily long time to close on a note. At least with us, we do the due diligence before we go under contract on it. We also tend to only buy from sources we know really well. They'll say "hey, we've got this NPL on 123 Main Street in Bugtussle, IN...wanna buy it", we'll get into the "deal room" (drop box file or whatever with all the docs), we'll review that they have including the note, mortgage, assignment chain, alonges, collection notes, etc. We'll pull up the court records and send someone by to give us a condition report (notice I didn't say BPO...we are pretty good with determining value if we know condition). We then back into a price based on our intended profit margin, time value of money, an analysis of worst case "what if they pay us and what if they don't", the time in the jurisdiction to get the property back through foreclosure if necessary and our time value of money associated with that. That normally takes us 48-72 hours. Once we're done, we sign the agreement and close after that. It should not take that long to close on a note deal. What is taking you that long to do to close a note deal?
Given, I handled special assets for banks prior to the last crash. We started this company with tons of formal collections and complex NPL management in actual financial institutions, so we can move pretty quickly. Provided you have the right info out of the gate and you know what your'e doing, it's quick.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes6mo
Quote from @Doug Smith:
That is an extraordinarily long time to close on a note. At least with us, we do the due diligence before we go under contract on it. We also tend to only buy from sources we know really well. They'll say "hey, we've got this NPL on 123 Main Street in Bugtussle, IN...wanna buy it", we'll get into the "deal room" (drop box file or whatever with all the docs), we'll review that they have including the note, mortgage, assignment chain, alonges, collection notes, etc. We'll pull up the court records and send someone by to give us a condition report (notice I didn't say BPO...we are pretty good with determining value if we know condition). We then back into a price based on our intended profit margin, time value of money, an analysis of worst case "what if they pay us and what if they don't", the time in the jurisdiction to get the property back through foreclosure if necessary and our time value of money associated with that. That normally takes us 48-72 hours. Once we're done, we sign the agreement and close after that. It should not take that long to close on a note deal. What is taking you that long to do to close a note deal?
Here is what we do:
1. Get it under agreement.
2. Request soft copies of all collateral
3. Once received, we review - then order title and valuations
4. Once title received - send to attorney for final collateral review
5. Give clear to close to seller
6. Have collateral shipped out
7. Close
Typically takes 3-5 business days to get title search done then attorney review could be same day or a week. We typically close in less than 2 weeks - those with hair take longer.
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- Investor · Member since 2021 · 18 posts · 6 votes6mo
Essentially, we’re seeing deals move faster than the typical industry timeline.
- 6moJ CastroBusiness MemberLender · Florida · Member since 2025 · 661 posts · 239 votes
30–45 days is pretty typical, especially when you factor in appraisal schedules, title company work, and getting all paperwork from the borrowers on time. Even when the deal is well-prepared, delays often come from waiting on third parties or incomplete borrower docs.
The fastest closings happen when title is clear, the appraisal is scheduled quickly, and borrowers provide complete documentation upfront. With all those pieces lined up, timelines can compress dramatically—but realistically, 15–30 days is standard for most transactions, and anything faster usually requires exceptional coordination.
Closing in 43 hours is impressive, but that kind of speed usually only works when every piece—appraisal, title, docs, and borrower responsiveness—is ready before you even start.
- Investor · Member since 2021 · 18 posts · 6 votes6mo
Quote from @J Castro:Right now, I’m focused on identifying ways to shorten that friction standardizing information upfront, improving visibility across parties, and tightening the overall workflow so timelines become more predictable and efficient.
30–45 days is pretty typical, especially when you factor in appraisal schedules, title company work, and getting all paperwork from the borrowers on time. Even when the deal is well-prepared, delays often come from waiting on third parties or incomplete borrower docs.
The fastest closings happen when title is clear, the appraisal is scheduled quickly, and borrowers provide complete documentation upfront. With all those pieces lined up, timelines can compress dramatically—but realistically, 15–30 days is standard for most transactions, and anything faster usually requires exceptional coordination.
Closing in 43 hours is impressive, but that kind of speed usually only works when every piece—appraisal, title, docs, and borrower responsiveness—is ready before you even start.
- 1wJ CastroBusiness MemberLender · Florida · Member since 2025 · 661 posts · 239 votes
Quote from @Taylor Doucet:
Quote from @J Castro:Right now, I’m focused on identifying ways to shorten that friction standardizing information upfront, improving visibility across parties, and tightening the overall workflow so timelines become more predictable and efficient.
30–45 days is pretty typical, especially when you factor in appraisal schedules, title company work, and getting all paperwork from the borrowers on time. Even when the deal is well-prepared, delays often come from waiting on third parties or incomplete borrower docs.
The fastest closings happen when title is clear, the appraisal is scheduled quickly, and borrowers provide complete documentation upfront. With all those pieces lined up, timelines can compress dramatically—but realistically, 15–30 days is standard for most transactions, and anything faster usually requires exceptional coordination.
Closing in 43 hours is impressive, but that kind of speed usually only works when every piece—appraisal, title, docs, and borrower responsiveness—is ready before you even start.
Exactly. I think that’s where the biggest opportunity is.
From the lender and underwriting perspective, speed starts long before the closing table. It begins with receiving a complete, accurate package upfront so underwriting can identify the strengths, weaknesses, and potential red flags of the transaction early—not after everyone is already committed to a closing date.
We can control our internal process, but we’re still dependent on third parties—appraisers, title companies, insurance agents, attorneys, and borrowers—to keep everything moving. At the same time, underwriting has to do its job properly: verify the borrower, evaluate the property, confirm the numbers, review title and insurance, validate the exit strategy, and make sure the deal fits the lender’s guidelines.That’s why I’m a big believer in front-loading the underwriting process. The more information we have at the beginning, the fewer surprises we encounter later. Standardizing what’s required upfront, identifying potential conditions early, and maintaining clear communication between the borrower, broker, lender, title, and appraisal teams can eliminate a tremendous amount of unnecessary back-and-forth.
A 43-hour closing is certainly impressive, but from a lender’s standpoint, fast doesn’t mean rushing underwriting. The objective is to move efficiently while still making a sound credit decision and protecting all parties involved.
The real win is creating a process where 15–30 day closings become consistently achievable because the deal is properly packaged, underwriting is proactive, third-party reports are ordered immediately, and everyone understands exactly what needs to happen next.
Ultimately, the best lenders aren’t simply the ones who say, “We can close fast.” They’re the ones who can say, “We know what could slow this deal down, we identify it early, and we manage it all the way to the closing table.”
- Member since 2020 · 4 posts · 0 votes5mo
43 hours is impressive, Taylor. The caveat when everything was ready is usually where the industry average falls apart.
In our experience working with lenders, the 30-45 day average is not because the actual underwriting takes that long, it is because of the manual touches required for document QA, exception handling, and chasing down missing info.
When you can automate that initial document verification and covenant checking, you essentially force every deal to be ready much faster. Would be curious to hear what specific bottlenecks usually hold up folks deals before they hit that ready state.
- Investor · Member since 2021 · 18 posts · 6 votes5mo
Quote from @Monquize Dusseau: From what I've see, the real bottlenecs are incomplete documents sets, inconsistent intake, and the back and forth to fill gaps, not just underwritng itself. Waht im focused on is standardizing intake and validating everythign upfront so deals hit a true "ready " state faster. Once thats soved, the timeline compresses naturally, but that also comes with a whole set of new problems ive already came noted.
43 hours is impressive, Taylor. The caveat when everything was ready is usually where the industry average falls apart.
In our experience working with lenders, the 30-45 day average is not because the actual underwriting takes that long, it is because of the manual touches required for document QA, exception handling, and chasing down missing info.
When you can automate that initial document verification and covenant checking, you essentially force every deal to be ready much faster. Would be curious to hear what specific bottlenecks usually hold up folks deals before they hit that ready state.
- Member since 2024 · 144 posts · 27 votes2mo
A 43-hour close is an outstanding benchmark. In the traditional secondary note market, 30 to 45 days remains standard simply because of fragmented workflows and manual administrative silos. Waiting for third-party loan servicers to generate a verified estoppel letter and certified pay history accounts for the vast majority of that delay.
Outside of a dedicated digital trading platform, the best operational 'hacks' to compress the timeline down to 7–10 days involve proactive collateral vault preps. As a seller, you must have your corporate chain of assignments fully verified, an electronic bailee file ready, and a pre-drafted Loan Sale Agreement (LSA) with a standardized Extended Note template. When you treat due diligence as an upfront asset rather than a post-offer task, you can easily strip hundreds of hours out of the traditional closing window.
- Member since 2025 · 19 posts · 2 votes1w
Biggest lever I've seen isn't the underwriter, it's how clean the file is going into post-close, conditions get cleared faster when someone's doing nothing but chasing docs and stacking the investor package all day. Shops that keep that split between processing and post-close usually shave days off, not because people work harder but because nobody's context-switching between origination and closing tasks.
- Investor · Pacific Northwest · Member since 2026 · 511 posts · 285 votes1w
The 43 hours is impressive, but the more useful question is where the clock starts.
If title, collateral, payment history, assignments, servicing data, buyer underwriting, seller authority, and exceptions are already resolved before the deal is considered “live,” then you haven’t really compressed 30–45 days into 43 hours—you’ve moved most of the work upstream.
That’s the better model anyway.
The fastest note transactions I’d want to build around would have three stages: pre-clear the asset, surface every unresolved item before commitment, then let closing become execution rather than discovery. Once the file is normalized and the decision gates are already cleared, days should collapse pretty dramatically.
So I wouldn’t optimize for “close faster.” I’d optimize for entering the closing window with almost nothing left to learn. That’s where the real speed comes from.
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