LOI with no deposits

[Jonathan Orr]

Hey BP

I was talking with a fellow commercial RE developer and he was telling me about tying up properties (mostly land) with LOIs and not putting down deposits. 

It is understood that you can structure a LOI where you don't have to submit a deposit until a PSA is executed. However he was telling me that he even has done deals without having to put down any deposits, even after a PSA. Unfortunately didn't get the conversation beyond that.

I was wondering if anyone has done this before?  Any reasons why you could do this and how you would go about it?

Thanks