Letter of intent for a 5 unit

[Henry Webster]

I am writing a Letter Of Intent for a 5 Unit near me, and would like some ideas of what to ask for in the LOI.

The owner doesn't have much in the way of financials (old school) a couple tenants pay in cash he in turn pays for any 

maint. in cash. I have the leases and common area BGE. but thats about it. Is it legitimate to ask for his personnel returns?

The building was originally heated with oil and the tanks and boilers remain. I believe this will be a problem for a lender.

Should I ask they be removed in the LOI or wait for the bank to make it a condition. I'd also like to have the tenants answer

a few questions about whether they have any special arrangements with Landlord or any unresolved maint. requests. should that be done in the LOI

Thanks

[Greg Dickerson]

Originally posted by @Henry Webster:

I am writing a Letter Of Intent for a 5 Unit near me, and would like some ideas of what to ask for in the LOI.

The owner doesn't have much in the way of financials (old school) a couple tenants pay in cash he in turn pays for any 

maint. in cash. I have the leases and common area BGE. but thats about it. Is it legitimate to ask for his personnel returns?

The building was originally heated with oil and the tanks and boilers remain. I believe this will be a problem for a lender.

Should I ask they be removed in the LOI or wait for the bank to make it a condition. I'd also like to have the tenants answer

a few questions about whether they have any special arrangements with Landlord or any unresolved maint. requests. should that be done in the LOI

Thanks

The LOI is typically used for larger deals and is a non binding clarification of terms and conditions and precedes the offer. You can ask for whatever you want. All they can do is say no then it's up to you how you want to proceed.

For smaller deals like this you can just make an offer contingent upon all your requests and conditions and skip the LOI.