A broker's guide to faster closings

The following article was provided by RCN Capital

For brokers, the last few years have seen their fair share of ups and downs and 2025 looks to be no exception. Brokerages that have been able to not only survive but thrive in these environments are a cut above the competition. These successes can come from several areas but one such success can be found at the very heart of the broker’s business: closings. As many brokers find themselves being compensated at the time of closing, increasing the number of closings means expanding business for the broker. Especially true for solo brokers and smaller brokerages, faster closings mean room for more business not only from future clients, but from satisfied clients who return to work with those brokers that can close the most quickly and smoothly. The following are methods by which brokers can achieve faster closings and propel their business.

A good foundation

The first place to assess for improvement in the broker closing process is with the broker themselves and this largely comes down to organization and being prepared. Organization is imperative to ensure accurate project-tracking and compliant storage of documentation. Notetaking should be systemized, whether short-hand or formal, to ensure that important information can be recalled efficiently. There are many technological tools a broker can use to aid in these areas. Particularly as tech has expanded in the real estate industry to support brokers, lenders, and even investors. A broker who has difficulty sourcing new clients, deals, and comps, or one who struggles with organization and communication would do well to investigate solutions in this regard.

When working with multiple clients on multiple deals, it can save the broker time in their process to have a list of common questions ready. These are questions for the client that will be relevant to determining the success of the deal, like asking their estimated credit score. It is helpful as well to know how to respond to those questions commonly asked by clients about their projects.  It’s important to call out that being prepared does not mean having all the answers all the time. Part of being prepared, and professional, is not only being able to say, “let me get back to you with an answer” but knowing where to turn to get that question answered quickly and accurately.

About business

In client relationships, it is best that the broker assumes the role of the industry expert, and this is true even when working with experienced clients. This goes beyond the fundamentals of organization and requires the broker to have practical expertise. These can be skills like generating a list of comparable properties. When a broker knows that the closer a comparative property is in style, architecture, price point, local horizontals, and actual distance to the subject property, the more useful that information is going to be both to the client and to any financier making a determination on the deal.

Similarly, brokers should be able to identify which deals are likely to have legs on the front end. If the client wants to buy a rent-ready property and hold it for income, then it’s relevant to determine the debt-service coverage ratio (DSCR) to see if the property is likely to cash flow well. If the client is looking for shorter-term investments, like fix and flip projects, brokers can help determine deal viability there as well. Plotting out financial scenarios for the least work possible to yield a profit versus the work it would take to yield the largest possible profit can inform the investor’s strategy. Determining the time in which work would need to be completed in order to satisfy a threshold for return on investment. Even making sure that intended renovation or construction work is clearly itemized and organized by phases of work. All of these practical skills not only help the broker determine which investments are worthwhile for their client but can lead to faster closings as well with a clear business strategy and organized project paperwork that will leave fewer questions for financiers and contractors to ask, thus creating a smoother process.

Leverage private lending

With what private lending can offer, it’s worth investigating even for brokers who don’t already work with investor clients. Private lending is associated with faster closings for a number of reasons which work in concert to reduce turn times compared to traditional lending. Private lenders specialize in the asset classes they lend on, so they know what is needed to make a deal strong, thus enabling them to vet deals quickly and trim the fat in their process. Private lenders have greater flexibility in their requirements and underwriting. Most lenders will try to keep to a minimum of required documents, making submission and verification easier on the broker and their client. This flexibility also extends to which deals can actually make it to closing, where otherwise strong deals may meet their demise before even reaching the closing table, private lenders may find other methods of security on the deal to realize its success. Those brokers not yet working with investor clients on commercial or residential investment properties may find it easier than anticipated to start. The majority of states do not require licensing to close the commercial-style loans offered through private lenders. Any broker looking to become active in this sector should consult legal counsel on which markets they can enter without impediment.

Speed is of the essence

For brokers who want to survive and thrive in 2025, faster closings are a must. The broker’s role in achieving these is one of consistency and expertise. When working on a solid foundation for day-to-day practices the broker can rely on the system they have created to handle new scenarios even as they may vary. Whenever a wall is met in developing a strong foundation brokers can turn to industry tech to retool their own process and improve their business for themselves and their clients. Having a keen eye for active markets and knowing how to determine deal viability can keep a broker’s pipeline filled with deals that are more likely to close. The expertise in understanding and organizing documentation both for the client and a financier will make it easier to work with both parties. For those brokers not already doing so, working with private lenders who specialize in the asset classes they lend on have a proven history of providing faster closings on average from other sources of funding. With these tactics and more, brokers can find the speed they need to lead.