How to Close on a Real Estate Loan in Seven Days or Less

Closing on a real estate loan in under ninety days is unheard of, right? Yes and no. If you are looking at a traditional mortgage from a traditional lender, ninety days would be a reasonable expectation. But there are other real estate loans that can close in seven days or less. These are the types of loans that interest us.

As a hard money lender, Actium Partners specializes in real estate loans for developers, property investors, etc. It doesn’t take us ninety days to close a deal. Getting things done in seven days or less, from start to finish, is not unusual. We have even been known to fund loans within 24 hours.

So, how do you close a real estate loan so quickly? By doing the following:

Making Sure It’s the Right Kind of Loan

First and foremost, you have to make sure that you are applying for the right kind of real estate loan. Actium Partners cannot help you with traditional mortgages, fix-and-flip loans, individual construction loans, and the like. Our real estate loans target investors and developers.

There may be other hard money lenders that do the kinds of deals you are interested in. So do your homework. Look around to find one who can help you. If you are looking for a type of loan that we fund, contact us and offer a proposal.

Make Sure You Have a Strong Asset

Hard money lending is asset-based lending, which is to say that we make approval decisions based on the strength of your collateral. It is imperative that you have a strong asset to bring to the table if you want a real estate loan to close in seven days or less.

As a general rule, we make real estate loans based on the strength of the property being acquired. Though this is not always the case, it is the rule that applies to many of the loans we make. That being the case, you need to be aware that our loan-to-value (LTV) ratio almost always requires that a borrower’s asset be fairly strong.

Be Ready to Furnish Details

When we make hard money loans to real estate investors, we do not spend a lot of time looking at credit history, income verification, and other types of information banks ask for. But we do want and need details about the loan proposal. We need details on the asset you are offering as collateral. We also need to know how you intend to use the money.

Have a Viable Exit Plan

The one thing that can kill an otherwise promising hard money loan is lack of a solid exit plan. Seeking a hard money loan without an appropriate exit plan is a no-no in our industry. Why? Because exit plans are critical to helping us determine our level of risk.

We want to see exit plans that minimize our risk. We want to be able to make loans with the knowledge that borrower default is unlikely. Your best means of assuring that our risk is minimal is to bring a solid exit plan to the table. The better your exit plan, the more comfortable we are moving forward on your project.

Of course, even with all these things in place, we cannot guarantee any specific time frame for funding a loan. Every project we look at is evaluated on its own merits. The one thing we can say is that Actium Partners works faster than any bank. We have done same-day closings in the past. How’s that for fast?