Topic: Timeline to close on apartment building

Ever wondered what is the timeline to close on apartment building?
· Day 1 Submit Letter Of Intent
· Day 5 LOI Accepted
· Day 7-10 Receive Contract
· Day 20-25 Attorney Contract Review and Negotiation
· Day 26 Sign Contract
· Day 28 Earnest Money, Seller Provides Due Diligence Material
· Day 31-33 Start Due Diligence. Loan Application.
· Day 40 – 50 Due Diligence Ends
· Day 55 Finalize Docs
· Day 60 Loan Closes

I’d say that’s an optimistic timeline. Every deal is different. I had one that took nine months! Lenders can take a long time sometimes. If the buyer is using government financing (Fannie/Freddie loans) those specifically take a long time, 90-120 days to close would not be unusual.

60 days is a good estimate on a nice clean deal with no unexpected issues and a motivated lender.