The Real Estate Investment Process Can Take Longer Than Before – Here's Why
Written by: Aly
The Pandemic Has Changed the Dynamics of the Real Estate Business One of the things that would-be investors want to know is this: how long will the whole investment process take? After all, we are busy people and we want to know how much time and effort we would have to put in, right? […]
Published onMay 6, 2022
Last update: ago
Est. Reading: 3 minutes
The Pandemic Has Changed the Dynamics of the Real Estate Business
One of the things that would-be investors want to know is this: how long will the whole investment process take? After all, we are busy people and we want to know how much time and effort we would have to put in, right? This is a reasonable ask, and in fact you should be asking your realtor or your investment guide all of these questions. A lot of investors simply want to know how long the loan application and approval, the actual paper work etc. is going to take.
How long does the investment process take?
There are a few options that will determine the time frame of your investment process. We are assuming here that one is opting for a brand new single family home(which in my view is simply the best choice). So you can opt for a home that is nearly ready; which the builder is ready to hand over possession of. Here, the thing that will take time of about 40 to 45 days is the loan process. The process of closing the deal will take about a month even in the unlikely event of someone buying the property in cash.
Sometimes you would opt for a property under construction where you can add the time of two or three months to the time frame, within which you can finish off the loan formalities. However, I find that the most common scenario is investors choosing a model and the builder starting to build based on this after finding a buyer. This can take as little as four months in my experience but could take up to a year.
Why things have changed now during COVID.
What has changed recently is the pandemic throwing the supply chains off track. Lumber is an issue. Labor is an issue. The supply and delivery of raw materials and fittings such as doors and windows is an issue. What this does is, it creates significant delays in the whole process of building and handing over possession to the buyer. Right now, the supply chain issues remain and delays are not uncommon.
So if you're planning to invest, remember to factor in at least some delays, and, in cases, delays of up to several months over the usual time taken for the investment process. It starts with house hunting where you survey a lot of options and narrow them down to what suits you in terms of price, location, aesthetics, and your financial goals. You then apply for and get the loan, close the deal and find a property manager and then, as I always say, do nothing!
If you have any more questions about how long the investment process takes or indeed any question about real estate investing, we are here to answer those questions for you. We are ICGRE, a real estate company designed to help empower you with the knowledge you need to create a safe, financially secure future. Remember, even if the process does take a bit of time, choosing to invest in real estate is going to be life changing – in a very good way!Call us to set up a free meeting and we will take you through the whole process.
ICG uses single-family home investments, bought in advantageous locations and the best U.S. markets. We enable you to enjoy the clout that comes from purchasing a multitude of houses, even if you only buy one.
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