LOI for resedential property

[Rodney Harris]

HELP! Lol I am about to go under contract for a fourplex and the seller wants a letter of intent before the purchase contract. Seller is willing to pay all closing costs and loan costs in the deal.

Does anyone know anyone that could help me construct this? Thank you in advance!

Purchase price $285k

EMD $1,000

How balance to be paid

If with loan for how much and from whom. Pre approval letter (done)

Closing date (FHA not sure?)

Expected terms of approval of leases, assignment of deposits, rent perorated to date of closing if in middle of the month, but we should look to close within the last 5 days of the month in which there is no peroration.

Any contingencies 

Disclosures: rents are 3455 per month with collections for 2017 exceeding the rent roll.

Security deposits are for a month rent at the rental rate.

Will not show property until there is an agreement in principal, contingent on buyer satisfaction with the inspection and that Owner represents no deferred maintenance.

If your financing requires owner occupancy, we must work out the details of this. 

[Greg Scott]

An LOI is non-binding so don't get overly concerned.

The best place to start is ask the seller if there are any specific items he wants to see in the LOI. That will tell you what his hot buttons are.

Less is more. LOI is a starting point, but anything not in the LOI is negotiable as the purchase and sale agreement is coming together. At a minimum I would put price, deposit, due diligence period and closing period. I would put in a contingency for financing. By having a due diligence period you shouldn't really need any other contingencies unless you fail to do your due diligence.

Get an attorney to look over your agreement.