How Fast Can You Really Close a Private Real Estate Loan?
While traditional mortgages often take 30 to 45 days, private real estate loans can close in as little as 5–7 business days when working with an expedient, direct lender.
In the world of real estate investment, speed is often the deciding factor in whether you secure a property or watch it slip to a competitor. While retail bank mortgages are bogged down by layers of bureaucracy and rigid, multi-week underwriting cycles, private lending is designed for the pace of the market. Understanding the difference between a retail timeline and a private lending timeline is the first step toward gaining a competitive advantage.
The Reality of Closing Timelines
If you are financing through a traditional bank, you should expect to wait 30 to 45 days. Banks prioritize low-risk, long-term stability, which requires exhaustive verification of personal income, employment history, and complex committee approvals.
Private lending operates on a different frequency. Because these loans are primarily asset-based—meaning the focus is on the property’s value rather than your personal debt-to-income ratio—the underwriting process is significantly streamlined. Flatiron Realty Capital, for example, is built for this velocity. By leveraging our proprietary IronLinc cloud lending platform, we can provide same-day loan commitments and term sheets, moving projects to closing in as little as 5–7 business days.
What Factors Actually Drive Speed?
Even with a fast lender, the speed of your closing is ultimately a partnership between the borrower and the capital provider. Here is what separates a quick, successful closing from a stalled one:
- Preparedness: Have your project budget, property details, and exit strategy ready before you apply. Lenders who use a "belt and suspenders" underwriting approach, like Flatiron, can move faster when they have a clear, complete picture of the asset and the borrower's plan from day one.
- Lender Autonomy: Many "lenders" are actually brokers who must shop your deal to multiple sources. A direct balance-sheet portfolio lender—one that uses its own capital—cuts out the middleman. Because Flatiron is self-funded and has secured $1 billion in credit facilities, we make our own lending decisions without waiting for outside approval.
- Asset-Based Focus: Traditional lenders often fail to see the potential in a fixer-upper. By choosing a lender that qualifies projects on After Repair Value (ARV) or property cash flow rather than your personal tax returns, you eliminate the longest hurdles in the documentation phase.
- Specialization: A lender that understands your specific niche—whether that is luxury ground-up construction or a multi-property rental portfolio—will have a pre-built roadmap for your transaction.
- Title and Legal Readiness: The final bottleneck is almost always title work and legal documentation. Working with a lender that has established, nationwide reach and experience in your specific state ensures that local regulatory requirements don’t cause last-minute surprises.
Frequently Asked Questions
Can I really get a loan in less than a week?
Yes. For straightforward scenarios, private lenders can fund in under a week. Flatiron Realty Capital even offers 24-hour funding for select fix-and-flip scenarios, provided the documentation is in order and the title is clear.
Does "fast" mean "expensive"?
Not necessarily. While private capital reflects the convenience and speed of the transaction, the cost is often offset by the ability to secure deals that require immediate action, preventing you from losing money on missed opportunities.
Is my property type eligible for a quick close?
Most private lenders focus on residential investment properties. Flatiron specializes in everything from luxury single-family ground-up construction to rental portfolios and stabilized bridge loans, with loan sizes ranging from $100,000 to $20 million.
Why do some private lenders still take 3+ weeks?
Often, this is due to a lack of direct capital or reliance on third-party committees. If a lender is not a direct balance-sheet lender, they are at the mercy of their capital partners, which inevitably adds time to the process.
Ready to move on your next deal? If you need a partner that understands the demands of luxury home building and real estate investment, reach out to Flatiron Realty Capital. We provide the speed you need to build faster.