Quick Answer
Speed matters in investor closings because delays affect financing costs, seller relationships, assignment deadlines, contractor schedules, resale timelines, holding costs, and ultimately profitability. Every day a closing is delayed costs the investor money.
In a retail home purchase, a delay of a few days is often an inconvenience. In an investor transaction, a delay can mean the difference between a profitable deal and a loss. Here is why speed matters and how investors can close faster.
Time Has a Price
Investor transactions carry costs that accumulate daily. Hard money loans often charge points and daily or monthly interest. Holding costs include insurance, utilities, and property taxes. Contractor quotes may expire. Resale prices can change. Every day a closing is delayed, the investor's margin shrinks.
Consider a fix-and-flip investor who bought a property for $200,000 with a hard money loan at 12% interest. A two-week delay in closing costs approximately $920 in additional interest alone, plus any extension fees, before factoring in holding costs or delayed contractor start dates.
Fast Does Not Mean Careless
Speed and accuracy are not mutually exclusive. An experienced title company can move quickly because it has handled similar transactions before. The team knows what documents are needed, what underwriting concerns may arise, and how to communicate efficiently. The goal is not to skip steps but to avoid unnecessary delays. For more on avoiding delays, read how investors can avoid title delays.
What Is the Best Way to Close Faster
The most effective way to close faster is to open title early. The earlier the title company begins its work, the more time there is to identify and resolve issues before the scheduled closing date. Waiting until the last minute to open title is the most common cause of avoidable delays.
When opening title, send complete documentation from the start. For a full checklist, see what investors should send to title when opening an order.