Muhammad Yeo58146

Use the letter of intent as a way to let the seller know your intentions to purchase a property without having to write a formal, legal binding contract. As the LOI is presented to a seller the intentions of the buyer is spelled out clearly. This is how the seller knows exactly the intentions of the buyer and the terms of how the property will be purchased.

Present your offer to the seller in a casual, personal way. By waiting before you present a formal, contract a LOI will be a way to present your offer without intimidating the seller.

I have included a sample template to construct the LOI. Lets take a look at the contents of a LOI so you can learn how easy it is to construct one so you can quickly put a property under contract.

A letter of intent (LOI) has five simple components in its content:
1. Buyers name
2. Property address and description
3.The offer which includes:
-a.Purchase price
-b.Down payment
-c.Terms
-d.Conditions
-e.Due diligence time
-f.Closing time
-g.Other clauses or provisions
-h.A formal contract will be written up when the LOI is approved
4.A clause that makes the LOI non-binding
5.Your signature and a place for the sellers signature

The is simple content, that anyone can put together. Just make sure you simply cover all details so the seller knows exactly what you intend to do.

By creating an informal LOI this will allow for easy negotiations. The LOI should address all details. This will allow the seller the opportunity to come back with alternate terms. This type of negotiation will allow you and the seller to discuss the terms without the rewriting of the document.

The LOI is accepted, there is a due diligence period. This document will give both parties time to check out the property doing the inspection period. The negotiation may change the terms doing the due diligence process. There may be some issues about the property that have not be previously disclosed, are discovered. There may be a damaged foundation in which the buyer will not want to purchase the property and this will allow the buyer to option out of the non-binding contract. The LOI takes care of all the facts and figures and everything should be verified so that you the buyer will understand exactly what type of property you are buying. The LOI is a great document to use so that if things are not to your liking you can back out of the deal.

When you locate your first property remember to use the LOI to purchase the property. The process is simple and will not take a lot of time, it does not consist of legal fees, and you structure the document easy to read and.

LOI, is easy to construct, and it will represent what you truly intend. Take some time to practice a few before you submit them to sellers. You can cover all the details, and prepare to negotiate the terms if necessary.

Mary Evans is a writer and a commercial consultant of apartment, multifamily and income producing properties.

# posted by muhammadyeo22294 : 3:33 PM