What are the most common reasons a NNN lease closing is delayed?
The first step in a net lease closing is to match a lender to a borrower’s needs. Then, third parties like appraisers, environmental or property condition inspectors, title attorneys, and 1031 facilitators get involved to help satisfy the requirements of the property sale.
The most common reasons for closing delays are poor third party vendor selections and mismanaged timelines.
Choose third party vendors who fit your specific needs
Selecting the right third party vendors is a critical closing step. And yet, we often see third parties who aren’t optimal for the need - like hiring a personal injury attorney to close a real estate transaction.
We can connect a borrower with qualified professionals who can solve their specific needs.
Monitor your lending timelines closely
Timeline management is another critical step that can cause delays. Once a title attorney provides the critical dates list, your borrower generally has 45-60 days to complete multiple requirements. Missing one step can cause a domino effect, pushing back your closing date.
The critical dates list identifies the timeline for key steps you must satisfy to close your investment purchase, including:
Property condition assessments and inspections
Property appraisal
Title documentation
We monitor all steps needed for an on-time closing and can advise borrowers if action is needed.
