How soon do you get to the LOI phase?

by a searcher from Rutgers-The State University of New Jersey-Camden - Rutgers School of Business

1 month ago

I lost out on the first deal I seriously looked at because, while I thought I was moving expeditiously once it was listed, other buyers had come out of the gate with LOIs.  I took a day or two with the CIM and asked the broker a few questions.  Then when I asked the broker about meeting the seller, he told me I was eight in line, and the seller wasn't taking any more meetings.
How quickly do other searchers move on an LOI?  Have others had the same experience?  

Thanks

2 likes
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40 comments

searcher from University of California, Berkeley - Haas School of Business

If you have a volume of deals under your belt, you can prob dismiss 90% of the CIMs almost immediately. The remaining 10%, prob takes about 2-3 meetings (or written Q&A to clarify CIM),...if Seller is prepped and quick to respond, this could take less than a week. While you are doing this pre LOI DD, you should be aligning with Seller (or their advisor) on LOI key terms. Bear in mind LOIs are non binding but always only issue an LOI in good faith to getting to the finish line.

1 month ago | like reply | 0 likes

searcher from Baruch College-The City University of New York - The Zicklin School of Business

Thanks ^Searchfunder member‌ for the tag. Lots of great advice here and I've found for brokered deals, everyone has a slightly different process so understanding what this is up front is important. Some take IOIs some don't, some have a seller call before LOIs some don't. Understanding how the broker you're working with operates and prefers to do things is important. But no matter what their process, getting to an LOI as fast as possible is key.

1 month ago | like reply | 0 likes

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