How to write and send ROI

[Don Thornton]

Hi, I am looking at a property that I am interested in but it's in another state. Since I am living in another state I have to make work arrangements before I can fly over to the property to do my due diligence. Can anyone give me advice on how to write and send over the LOI (Letter of Intent) and hold the property with downpayment before I can fly over there to do due diligence? Thank you for reading my post.

[Greg Dickerson]

Originally posted by @Don Thornton:

Hi, I am looking at a property that I am interested in but it's in another state. Since I am living in another state I have to make work arrangements before I can fly over to the property to do my due diligence. Can anyone give me advice on how to write and send over the LOI (Letter of Intent) and hold the property with downpayment before I can fly over there to do due diligence? Thank you for reading my post.

LOI are non-binding and fall apart all the time so I do not recommend to do a site visit until you get the property under contract if it's out of state and requires time and expense unless there are serious questions bout the condition or the area that you want to see first hand before entering into a contract but you will have time for inspections afterwards anyway. If it's close by or you are not concerned with spending money when you do not control the property then you can do a visit but often times the seller will not allow visits and inspections until you have a contract unless they are offering tours.

You should always check the offering documents or ask the Broker if they have a specific format for the LOI if not keep it simple. Basic elements of LOI are date, parties to the transaction, property address and legal description, non-binding clause, Exclusivity clause (no shopping the deal), broker representation and compensation, deposit and terms, price and terms, due diligence period, closing date and location and any other special language as needed. The actual contract will dig into details on all other areas.