Sample Letter of Intent

[David Casey]

Hello, I'd like to make an offer on a commercial property and wanted to see if there is a good template that investors have used, I can seem to find any on Bigger Pockets.  Do you recommend bringing in a lawyer at this stage or does it make sense to wait until the offer is accepted? 

If anyone has an example it would be greatly appreciated, 

[Ryan Murdock]

@David Casey They can be as elaborate or as simple as you want them to be. I prefer the latter. Here's the last one I sent. It worked. 

(The names and numbers have been changed here to protect the guilty and no doubt I stole some of the content from other sources I just don't recall where, probably this site....)

Steve -

As you are aware my partners and I would like to make an offer on the Shady Acres Mobile Home Park in Springfield. The following sets out the basic terms upon which we would be prepared to purchase the Property. The terms are not comprehensive and we expect that additional terms will be incorporated into a formal agreement to be negotiated. The basic terms are as follows:

(Choose one of these three)

1. Purchase Price: $2.8MM. Subject to bank financing of $2,260,000 and seller financing of $540,000.

2. Purchase Price: $2.7MM. Subject to bank financing of $2,360,000 and seller financing of $340,000.

3. Purchase Price: $2.6MM. Subject to bank financing of $2,280,000 and no seller financing.

Closing: 60 days or less.

Additional conditions to be completed within 30 days of signed acceptance of purchase agreement:

Review and approval of the documentation concerning the Property.

Completion of satisfactory physical and environmental inspections of the Property.

Completion of satisfactory due diligence search and examinations.

Satisfactory review of the title of the Property.

We appreciate yours and the Smiths' consideration. We realize they have owned this park for a long time and have a lot invested - physically, mentally and financially. We believe our offer is fair and will enable us to continue improving the community for many years to come.

We would appreciate a response by Friday June 1.

Sincerely,

Ryan Murdock