LOI details for Real Estate Purchase

General Real Estate Investing
1

Hello all,

I’m contemplating purchasing condos in a condominium complex. I need a little help with my letter of intent (LOI).

  1. Specifically, what would you all put in the conditions section?

  2. Also, are there any other clauses or provisions that you would include?

  3. And finally, what documents would you need to see from the seller?

I know I need a statement like, ‘… upon a satisfactory inspection and review of the property …’.

BTW, I am going to send a LOI before the purchase agreement. I know a few people might say that I should forget about the LOI and send the purchase agreement. But I’m going to send the LOI first, anyway.

Thank you all for your constructive comments in advance.

Teal’C

2

I would use a Investor friendly purchase agreement…

3

Personally the LOI is a waste of time. I would just send the agreement as well. When I get a LOI on a property I have someone in the office call and assist them in putting the property under contract. The reason for that is simply that I consider the LOI as someone that might need assistance in writing a contract. And that to me means that I am going to make more on the property! Every contract I use is contingent on Inspection and the appraised value as well as the Buyers approval of the property Simply because I don’t go look at them until the except my offer.