A Few Noob CRE Investing Questions (LOI, mortgage rate, etc)
New to CRE investing, I have a few questions on the process:

Submarket: NNN or absolute net, $500k to $2m, office/retail, investment property

1. Are LOIs (letter of intent) generally exclusive between the potential buyer and seller? (as in, can the sellers accept multiple LOIs at a time?)
2. What seems to be a chicken and egg question: how to best get estimates on what mortgage rates and options I can obtain for a particular deal. Do mortgage brokers only want to talk to you when you're past the LOI stage? But wouldn't I need to know the mortgage rates to see if a deal even financially makes sense before submitting an LOI?
3. What are the factors I should consider to evaluate how easily a building can be converted to be a restaurant (if current tenant doesn't renew, for example)?

Thanks for your input!
[{"id": "ignca07", "text": "1.  A good LOI will have an exclusivity clause that prevents sellers from accepting other offers for a period of time.  \n2.  You can definitely talk to mortgage brokers and directly to lenders prior to submitting an LOI.  They should be able to tell you what rates to expect. A lender may even be able to email you some basic term sheet terms unofficially if you share the details of the asset you are interested in.  \n3.  The biggest question is how to determine if the market will accept that change.  That is a question for a retail investor/developer of which I am not.  The other side of it is the cost and you could probably get some rough ideas from contractors.", "replies": [{"id": "igotpu7", "text": "Thank you!", "replies": [], "depth": 2}], "depth": 1}, {"id": "ignp12a", "text": "1. Yes.\n\n2. As you are reviewing deals, send it to your lenders for high level feedback.  They will give you a general loan amount and rate.\n\n3. Idk.", "replies": [], "depth": 1}, {"id": "ignwzsz", "text": "1. Yes, standard LOIs are generally non-binding except for an 'exclusive dealing' clause that usually says the two parties won't entertain other offers, terminating with written notice to either party. \n\n2. Mortgage brokers or lenders will provide what are generally called 'indicative terms' which are non-binding and will provide loan amount, amortization, rate, and loan fees estimated on a given deal. You won't get a term sheet until you have it under contract.\n\n3. Zoning (permitted use), parking requirements, HVAC &amp; venting (is the equipment to provide sufficient circulation already installed, and how easy would it be to install if not), frontage and visibility from the street, traffic or pedestrian volume on the closest intersection, exclusivity clauses on other leases if it's a multi-tenant property.\n\nEdit: don't underestimate the HVAC requirements for restaurants. They need a high amount of air removal and replacement equipment and chimneys or back-wall punch-through vents if a property is multi-storey. Basically the goal is to replace enough air from the inside of the restaurant with treated outside air that the dinning room doesn't smell what the kitchen is up to. This can be a significant expense if the property wasn't designed for it and in most jurisdictions it's part of the building code so it's not optional.", "replies": [{"id": "igotqxi", "text": "Ty sir!", "replies": [{"id": "igp14zs", "text": "This was the best answer. Zoning comes first. What municipality is this in?", "replies": [], "depth": 3}, {"id": "igsuuod", "text": "Yeah, the comment above is great and spot on.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ignxb64", "text": "3. Franchise/restaurants in general typically prefer layouts specific to their use. You could lease the space as is and provide the tenant TI funds, and adjust rent based off how much is provided.", "replies": [{"id": "igoxasg", "text": "I\u2019d reckon OP needs a second gen restaurant kitchen or food production facility. \n\nPerform feasibility start up", "replies": [], "depth": 2}], "depth": 1}]