LOI format and wording

[Jonathan New]

I've written dozens of smaller project LOIs, but I am writing a LOI for my biggest deal yet. I would love to get different LOI formats that other syndication sponsors use. Also, I intend to include an escalation clause into the verbiage and am seeking out a bit of clarity on how other investors would word that.

[Greg Dickerson]

Originally posted by @Jonathan New:

I've written dozens of smaller project LOIs, but I am writing a LOI for my biggest deal yet. I would love to get different LOI formats that other syndication sponsors use. Also, I intend to include an escalation clause into the verbiage and am seeking out a bit of clarity on how other investors would word that.

Best bet is to discuss with a commercial real estate attorney. LOI are simple and non-binding agreements but do need to address the terms to which you are willing to then enter into a contract. The attorneys will then take over and draft/review the actual Purchase Agreement/Contract. Main thing is you do not want to agree on major terms and then attempt to re-trade or go back on agreed upon terms. I do not recommend the escalation clause. The seller will typically be calling for highest and best offer if multiple offers are received or they will counter.