How Fast Can You Close a Private Money Loan?
Short answer: A private money loan on a fix-and-flip can close in roughly 8–10 days for a clean file — and in a pinch, faster. That’s a fraction of the 30–45 days a conventional loan typically takes, because private lenders underwrite the property and the exit instead of spending weeks verifying income and debt. The real bottlenecks usually aren’t underwriting at all — they’re title, the appraisal or comp review, and how quickly the borrower returns documents.
By Andrew J. Liersch III — Founder & CIO, Slingshot Investments. 10+ years in private lending, $500M+ funded. Former Wells Fargo Private Mortgage Banking, Bear Stearns, and Deloitte Consulting.
Why Private Money Closes in Days, Not Weeks
A bank loan is slow because it’s underwriting you: employment verification, tax transcripts, debt-to-income analysis, and a credit committee — a process built for owner-occupied, 30-year mortgages. None of that fits the timeline of a flip, where the deal is gone if you can’t perform.
A private money loan underwrites the asset and the exit. (For the full mechanics, see how private lenders underwrite a fix-and-flip loan How Do Private Money Lenders Underwrite a Fix-and-Flip Loan? – Slingshot Investments.) That collapses the timeline: once the lender is comfortable with the property’s value and your plan, there’s no month of income documentation standing between you and funding. For an investor competing against cash buyers, that speed is the product.
What Actually Drives the Timeline
It’s rarely underwriting. The three things that set your real closing date:
1. Title and a clean prelim. This is the most common bottleneck. Liens, clouds on title, probate issues, or a slow title company can add days regardless of how fast everything else moves. Order title early.
2. Appraisal or comp review. The lender needs an independent read on value. Whether they require a full appraisal or will work from a strong comp set / BPO affects the clock. Appraiser availability is sometimes the gating item.
3. Your responsiveness. The fastest closings happen when the borrower returns the term sheet, signs disclosures, and provides entity documents the same day. Every day a document sits in your inbox is a day added to the close.
What You Can Do to Close Faster
- Have your entity ready. If you’re borrowing through an LLC, have the operating agreement, EIN, and formation docs on hand. Scrambling to form or document an entity mid-deal costs days.
- Order title immediately. The moment you’re in contract, get title working. It’s the item most likely to surprise you.
- Return documents same-day. The term sheet and conditions are in your court — clear them fast.
- Pick a lender who actually decides. A direct private lender whose underwriter can make the call moves faster than a fund that routes approvals up a chain. (This is part of the private money vs. hard money Hard Money vs. Private Money: What’s the Difference for Real Estate Investors? – Slingshot Investments distinction.)
The San Diego Angle
In San Diego’s competitive market, the buyer who can close in ten days beats the buyer who needs a month — often even at a slightly lower price, because sellers value certainty and speed. Proof-of-funds plus a credible fast close is leverage in the offer itself. The speed isn’t just convenience; it’s how you win the deal.
Frequently Asked Questions
What’s the fastest a private money loan can realistically close?
A clean file with title already moving and a responsive borrower can close in about a week to ten days; rush situations can go faster.
What slows a closing down most often?
Title issues, appraiser availability, and delayed borrower documents — in that order. Underwriting is rarely the holdup.
Do I need an appraisal?
It depends on the lender and the deal. Some require a full appraisal; others will work from a strong comp set or BPO, which is faster.
Can I close in an LLC or trust?
Yes — but have the entity’s formation and authorization documents ready, since gathering them mid-deal is a common cause of delay.
Is a faster close more expensive?
Not inherently. Speed comes from the underwriting model and the lender’s authority to decide, not from a premium you pay.
Need to Close Fast on a Deal?
Slingshot Investments closes San Diego fix-and-flip loans in days, not weeks — because we underwrite the asset and the exit and make the decision in-house. Tell us about your deal Contact | Contact Form at Slingshot Investments.
Related reading: How do private lenders underwrite a fix-and-flip loan? How Do Private Money Lenders Underwrite a Fix-and-Flip Loan? – Slingshot Investments · Hard money vs. private money: what’s the difference? Hard Money vs. Private Money: What’s the Difference for Real Estate Investors? – Slingshot Investments · What is a draw schedule? What Is a Draw Schedule on a Rehab Loan? – Slingshot Investments · How do you estimate ARV on a fix-and-flip loan? How Do You Estimate ARV on a Fix-and-Flip? – Slingshot Investments
