How frequently do you submit LOIs?

September 06, 2022

by a lender in Yorba Linda, CA, USA

Please submit your response on my Twitter poll (link below). I'm very curious to see the results and would like to get as many responses as possible. In my experience with many searchers, I have noticed that some are much quicker to move to an offer than others. What is the optimal velocity? What do you think and why?

https://twitter.com/EndresenHeather/status/1567159864060956673

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Reply by a searcher
from Northwestern University in Chicago, IL, USA

Thanks Heather. This is very helpful because I am wrestling with this issue at the beginning of my self-funded search. I know the LOI is non-binding but I am reluctant to spend my money on diligence until I am pretty confident in my understanding of the business. I'm still trying figuring out the right level of knowledge before an LOI, and this poll will be useful.

Reply by a searcher
in Chicago, IL, USA

Personally, a Seller often thinks an LOI means "serious intent" which it should. Depending on the size of your team, it's a little disingenuous to have a dozen LOIs in the wind. That said, locking them into Exclusivity so you can safely perform DD is worth it's weight in gold.

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