LETTER OF INTENT OR PURCHASE AND SALE AGREEMENT?

Bird Dogs, Wholesaling
1

  1. what is the difference between a letter of intent or filling out a purchase and sale agreement when making offers on homes?

  2. Has anyone used pre paid legal for the real estate legal needs, if so how useful is if compared to going out and getting a lawyer on your own?

2

A letter of intent is not a binding contract- it basically spells out the general terms of your intended offer (price, closing date, etc). If the terms are agreeable to the other party, then a purchase contract is drawn up.

If you are making offers on mls properties, you might want to check with the listing agent first to see if a letter of intent is acceptable.

I have never had any luck using letters of intent, although I know a few people who use them regularly. I guess it just depends on your locale.

Steph :cool

P.S.
No idea about the pre paid legal- sorry.

3

tampasteph,

thank you for that explanation. it was very helpful.

thanks

4

I don’t know much about using a letter of intent. We have always purchased homes the “traditional” way, i.e. purchase agreement right off the bat.

Now let me tell you, I am a real estate investor and I market Pre-Paid Legal Services. I have done both for about 5 years and would never be involved in real estate without good attorneys. The attorneys we’ve used through Pre-Paid Legal are great (mostly AV rated) We call them all the time with questions and have them review contracts, write letters, make phone calls, etc. You can’t beat it for $17 per month either! (I even have a client who is an attorney. He uses it because we are in every state and he can only practice law in Ohio.) Not just telling you this because I sell it but because it’s important to do these things no matter how you get an attorney. People are so sue-happy today you can’t be too careful!

Hope this helps!

5

cmchomes

thank you for you informative answer. i’m definitely going to look into it. is there a website that shows the different plans or prepaid options or just more information about a r.e. attorney?