How Deals Get Closed
Everyone in real estate eats when deals close. Brokers, investors, contractors, lenders all get paid when transactions happen. But before those wires hit, there are a hundred things that need to go right to get us to that point. Knowing what those steps are gives you the best chance at success in this business. Here’s the real-world breakdown of what it takes to get deals done in real estate investing.
Finding the Deal
Right now, wherever you are, there are thousands of deals waiting to be closed—they just need the right person to put the wheels in motion. That should be you. Once you’ve established your strategy as a real estate investor and defined your buy box, you should be reviewing as many potential deals as possible every single day
How do you do that? Start by looking in the usual places. MLS sites, Facebook groups, and more have a never-ending stream of properties. If those feel too competitive, dig deeper into property data platforms like PropStream or PropWire. I can’t tell you which source will be best for you, but you’ll quickly find your niche for deal flow.
It’s also essential to build out your network. After some time in the business, you’ll reach a point where deals start finding you. Brokers, wholesalers, and agents are all looking to move properties and keep the pipeline flowing. Get introduced, tell them exactly what you’re looking for, and they’ll start sending you opportunities. Just make sure you prove you can get to the closing table. If you do, your network will become your greatest asset.
Doing the Diligence
With a handful of deals now coming your way regularly, it’s time to get good at analysis, underwriting, and diligence. With a tight game plan, you’ll be able to take these opportunities to the closing table… or toss them in the trash.
First and foremost, you need to understand the specifics of your asset. With a defined buy box, you should already know the basics, but now it’s time to go deeper. You need to determine the condition of the property on a first-hand basis (that means go and see it). This will inform your comps and help you get a realistic sense of what the property might sell for after your improvements.
Once you understand the asset, apply your strategy. Define your scope of work. Set a purchase price that gives you room to profit. Know your ARV. If you plan to refinance and rent, know what your exit rate is, who your lender will be, and what the rent needs to be to cover your debt service. Every one of these numbers should be specific—and as conservative as possible. A miss here can make or break the deal.
Funding the Deal
Once you know you’ve got a go-project, it’s time to get to the closing table. Lock it up. Get the property under contract, show the seller your plan and your ability to execute, and make your move. But don’t wait! if you think the deal is solid, someone else probably does too. Beat them to the punch by getting it under contract as soon as possible.
With the deal in hand, your next step is securing the financing to close. This is where The Hard Money Co. comes in. Submit an application and our team will start working on your financing right away. We value speed and diligence, and we’ll match your urgency with our own. If you’ve got a go-deal, we’ll push to get everyone from title, insurance, and more to the table on time, with funds ready.
We work exclusively with real estate investors. That means we understand your deal and what it takes to close better than any traditional lender can.
Now the Real Work Begins
You’ve closed your deal, but that’s just the beginning. Now it’s time to make your wealth-building plan a reality. Execute your project. Renovate, refinance, rent, or sell. Whatever your strategy is, follow through with precision and urgency.
Then do it again.
The more deals you close, the more momentum you build. And at every step, The Hard Money Co. will be there to help you get it done.
