LOI's - What do you guys put in them?

[Roger King]

Hi - I, too am transitioning from SFH to apartment buildings, and would like to see what kinds of LOI's are out there.

What language, due diligence exits, and other concerns are you using in your offers? Actual examples are certainly appreciated - It might help clear up confusion for a bunch of us...

I'm new here, and I apologize if this has been a previous topic.

Thanks!!

[Will Barnard]

Here is a sample LOI I have submitted, of course, have your name and contact info at heading and signature at bottom.

February 2, 2009
Re: Letter of Intent To Purchase
ABC Apartments
Legal Description to be provided later
Please be advised that YOUR NAME HERE, agents for Business Entity Name here, or an
LLC to be named later, are hereby interested in purchasing the above captioned property. The following are the
terms and conditions upon which we would be interested in proceeding.
1) Purchase price to be $1,000,000
2) Earnest Money Deposit to be $10,000. Additional earnest money after feasability period to be $10,000.
3) Conditions:
A. Preliminary Title Report
B. Seller's ALTA Survey of property at seller's expense
C. Buyer's Attorney
D. Inspection of Property at buyer's expense
E. Appraisal of Property at buyer's expense
F. Seller to transfer all security deposits and utility deposits to buyer at closing.
G. Upon protest of a mistake of property taxes, buyer has right of refund for past three years.
H. Property Tax statements for last two (2) years to be provided to buyer within five days of contract.
J. Seller's supply of Profit and Loss Statement and rent roll for last two (2) years within five days of contract.
K. Buyer reserves the right to receive full refund of all earnest money upon written notification of cancellation
of purchase contract within the due diligence period.
4) Feasability Period: Buyer shall have 30 days in which to perform it's due diligence including, but not limited
to, all physical inspections, both interior & exterior.
5) Closing: Buyer will close within 30 days of completion of due diligence period.
This letter/proposal is intended solely as a preliminary expression of buyer's general intentions and is to be used for
discussion purposes only. The parties agree that this letter/proposal is not intended to create any agreement or obligation
by either party. The parties intend that neither shall have any contractual obligations to the other with respect to the
matters refereed herein, unless a definite agreement has been fully executed and delivered by the parties.
This offer expires on Date Here at 5:00 PM Pacific Time.

Hope that helps.
Of course, you should consult with your attorney to include any additional and necessary contingencies and remove any that are non-applicable.