Hi, should I use an LOI or Option to control and assign a large office building deal?

I have found a large institutional size office building in Chicago worth 10M+. I want to get it contract and assign the contract to an institutional investor who can close, rehab and sell or hold. Should I use an LOI or Option to buy it from the owner?
In Buying Property - Asked by JOHN M. - May 26, 2016
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Answer(s)

Brian H.
Broker/Agent
Chicago, IL

John M:
Your question leads to the presumption that you want to enter into a $10,000,000 commercial deal pursuant to a contract to Purchase on which you will be obligated unless you find a ready, willing and able investor to assign the contract to; this could be risky on several levels and not such a good idea.
You also mention the use of an LOI which I believe would be much less risky. However, an LOI is intended as a device by which a serious buyer shows an interest in purchasing property but wants a non-binding agreement with the seller for time in which to do due diligence and would probably not suit your purpose.
I am a Real Estate lawyer in Chicago and if you would like to discuss please call me.
Brian Y. Hamilton
773.592.9107

May 31, 2016
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Jim O.
Broker/Agent
Land O Lakes, FL

option

May 31, 2016
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Chris R.
Broker/Agent
Denton, TX

You certainly need assistance to proceed. A good RE attorney - or a commercial REALTOR will be able to help you through this process. The LOI is simply a tool that we use to iron out the points and terms on which a contract will then be based and entered into. A $10M deal is far too complicated to not obtain professional help as indicated.

Jun 1, 2016
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