Are Letters of Intent a Waste of Time in This Market

[Linda M.]

Are letters of intent a waste of time in a competitive market when inventory is low? Doesn't this create an opportunity for someone else to come in and swoop the deal out from you with an actual PS agreeement?

[Jay Hinrichs]

Agreed depends on the deal.. LOI are not used in vanilla sfr stuff at least I have never been presented one. unless we were selling a block of 20 or 50 of them or something.

WE see them in land development and I am sure they are used in bigger commercial and maybe some Multi.. but multi has been so hot maybe they don't use them much there right now I don't really know..

But in SFR I would absolutely say they are a waste of time.

If you want a short cut just create your own one page purchase and sale contract.. in our state we have Stevens Ness forms you can buy at  office depot that are one or two pages.

take one of those customize it with your name etc and use those to shot gun deals out.