Investing In Property: When Closing Speed Really Matters

When it comes to buying a home, most people are familiar with the often drawn-out closing process. The paperwork, underwriting, and endless document requests can make it feel like there's no end in sight. But in the realm of property investing, time is of the essence. Sellers aim to seal the deal as swiftly as possible, and the speed of the transaction can make or break the sale. In this article, we delve into the importance of closing speed in property investment and the key to making it happen.

Investing In Property

Closing in on Success: Why Speed Matters

Once a seller accepts an offer, the last thing they want is to wait months for the deal to finalize. Quick closure safeguards the sale, as prolonged delays increase the risk of the transaction falling through. This urgency underscores the critical role of the buyer's source of funding. The two quickest funding options are cash and hard money loans.

The All-Cash Advantage

While funding real estate investments with cash isn't the norm, it can ensure a speedy closing. All-cash deals may tie up resources that could be otherwise invested, but they guarantee a swift conclusion, which is sometimes necessary to secure a good deal.

In an all-cash scenario, sellers often request proof of financial resources, usually through bank statements or other supporting documents. Once the buyer's financial capacity is verified, closing can take place within a matter of days. The timeline primarily depends on how quickly the title company can finalize the paperwork.

The Hard Money Solution

Hard money loans are the next best alternative to an all-cash purchase when it comes to closing speed. These loans are provided by private lenders whose decisions primarily hinge on asset value. Unlike traditional lenders, hard money lenders sidestep the lengthy underwriting process that can take weeks or even months.

Consider Actium Partners, based in Salt Lake City, UT, as a shining example. Their underwriting process is efficient and streamlined. They've been known to approve and fund loans within a remarkable 24 hours. A few years back, they came to the rescue of a client who was set to close on their investment on a Monday morning. However, their bank backed out on Friday. Actium Partners stepped in, sending an appraiser to inspect the property on Friday afternoon. They swiftly drafted loan documents, ready for delivery, along with funding, to the title company by Monday.

In this case, Actium Partners saved the day, preserving the deal. Without their swift financing, the closing might never have occurred, and another buyer could have snatched up the property.

The Need for Speed: A Competitive Advantage

Speed is a crucial factor in the commercial property game. With multiple investors vying for the same properties, those who can close the fastest often secure the most coveted deals. That's just how the real estate world operates.

This leaves property investors with two primary options: an all-cash purchase or a lending solution that can guarantee a rapid closing. And among these options, hard money loans stand out as the go-to choice for those who want to clinch deals swiftly. It's no wonder that many property investors swear by hard money and bridge loans.


In the world of property investment, time is of the essence. Closing speed can make or break a deal, and the ability to secure swift financing is a game-changer. Whether it's an all-cash purchase or hard money loans, the need for speed in closing is undeniable, and it's a competitive advantage that savvy property investors won't overlook.

FAQs (Frequently Asked Questions)

Why is closing speed so crucial in property investing?

Closing speed is vital because it helps secure the sale, reducing the risk of deals falling through due to delays.

What is the main advantage of an all-cash purchase in real estate?

An all-cash purchase guarantees a quick close, but it may tie up funds that could be invested elsewhere.

How do hard money loans differ from traditional bank loans?

Hard money loans prioritize asset value, bypassing the lengthy underwriting process, which can take weeks or months.

Can you provide an example of a lender with a swift underwriting process?

Actium Partners, based in Salt Lake City, UT, is known for approving and funding loans within 24 hours.

Why do many property investors prefer hard money loans for their investments?

Hard money loans are preferred for their ability to ensure a fast closing, a significant advantage in the competitive world of property investment.

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