When to Relocate

June 12, 2023

by a searcher from The University of Chicago - Booth School of Business in Chicago, IL, USA

Hello All,

I just got to a signed LOI on a deal that would require I relocate to pretty much the other side of the country. When do people recommend relocating? Of course, I don't want to make the move too early with diligence, etc. still to come. But
I do want to start planning in case things continue to move forward over the weeks ahead. It's a smaller deal, no SBA loan, so the LOI contemplates 60 days for diligence. Thanks!

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Reply by an intermediary
from Wake Forest University in Winston-Salem, NC, USA

You didn't mention what your family situation looks like, but would recommend you moving to an apartment for a couple months and have your family trail you. That way you can be 120% immersed in the business the first 60 days, and spend your "free time" researching communities and neighborhoods. Then if you have a family, they can come out and visit and tour houses. Also, talk with a mortgage lender and make sure you are going to be eligible for a home loan (if you are looking to buy). If you haven't been a business owner before, they might treat you like self-employed, which generally needs two years of history to get a mortgage, so you end up renting. I've had more than a couple of buyers hit this wall and it didn't sit well with the family.

Reply by an investor
from Illinois Institute of Technology in Pasadena, CA, USA

Don't even think of moving b4 you close. I made the mistake of leaving my corporate job when the LOI was signed.....it was only when the equipment appraiser showed up (from the bank) that I realized the mistake. Fortunately, I lucked out and the deal closed. Lots of surprise occur during DD and more when the drafts of the definitive docs show up. Fly out the day after it closes so you can meet the troops, then stay on in temp quarters to meet all the customers. Move later.

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