How do I write up an LOI for an apt. building?

Wanted to know if there were any templates available to look at for writing up LOIs for commercial RE? Or if anyone had one with personal info blacked out so I know the format of it? thanks
In General Area - Asked by juanita b. - May 14, 2009
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Answer(s)

terrance w.
Property/Asset Manager
Olympia, WA

Hey Juanita,
If you could email me at terrytoe@gmail.com I can send you a copy of one that some one gave me so you know what it looks like you can also make changes on it but from what I have heard when your dealing with commercial the broker will write it up for you but I might be wrong but you can try hope this helps

May 14, 2009
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Raul G.
Broker/Agent
Burbank, CA

Hi:
Google searches produce excellent results. Just go to google and type letter of intent for real estate.

May 15, 2009
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Paul S.
Broker/Agent
Glendora, CA

LOI's always crack me up. They are not binding so in reality you are just throwing out "ideas" to a seller. Since they are not binding why not use a napkin and write the words "I want to buy it, maybe" on it? You don't need any specific form. Use a word document and write down the points that are important to you. Once you send it to the seller you will find out what they want and at some point you will get to a contract. Until that contract arrives you have very little other than a "feel" for the position of the two parties. LOI's do not need to be fancy or take any particular form. If you e-mail me I will send you one. paulsylvester@remax.net
Paul Sylvester, CCIM

May 15, 2009
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Paul S.
Broker/Agent
Glendora, CA

Jaunita
It looks to me you have asked other questions about this purchase on this forum? It appears to me that you need more help than the bits and pieces you get from here will supply especially if you are trying to buy something from someone that has greater experitise than you do. Literally you can do a LOI on a napkin but do you have a plan to protect youself when you get to a contract? And what about a plan for your due diligence. While the forum here can answer questions for you the real question is do you know what questions to ask? I would suggest you contact someone that has answered one of your questions, whether it be me or someone else that has. Maybe you transaction is simple and easily doable on you own? Not many are.
Paul Sylvester, CCIM

May 15, 2009
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Dan M.
Broker/Agent
Peotone, IL

I am an attorney and commercial broker. send me an email to danmurray@firstmetrorealty.com and I can send you a LOI.

May 15, 2009
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Kenneth W.
Broker/Agent
Camp Hill, PA

Your LOI can be binding. I usually make my LOI binding for a period of 15 days (while we work out a binding detailed contract)

May 19, 2009
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Scott B.
Broker/Agent
Indianapolis, IN

Juanita:
Using an LOI is a great tool to get a quick answer as to whether the buyer and seller can agree on the basic terms and conditions of a transaction, before putting more costly and time consuming measures in motion. Paul S. from Glendale (above) was correct in saying that there us much more that would go into a commercial transaction. Some items to consider in the LOI would be:
1. Describe Property
2. Name Price to be Paid
3. Set earnest money and who holds it (refundable and/or creditable / when)
4. Review Period / Due Diligence Period (how long)
5. Approval Period (if there is a rezone or permits / how long)
6. Purchase/Sale Terms & Conditions such as:
a. approvals
b. environmental cleanliness
c. financial review justify offering price
d. survey and title match
7. Closing (when, who pays for what, how can it be extended)
8. Brokerage (who gets paid what and when)
9. Statement by broker to parties to consult attorneys and tax advisors
There is obviously much more detail, bot those are the basics and each transactions commands custom terms/conditions. Some of the associations have "boilerplate" forms that can work, but many times custom forms are better.
Just always make sure that all parties understand it is a non-binding attempt to get at the basics and who represents who. Then, one you have them in basic agreement, and until you learn more, just introduce a good real estate and tax attorney. I'd be happy to answer questions by phone if you would like to chat. Best of luck!
scott@baldwinbrothers.net / www.baldwincommercial.com
www.linkedin.com/in/scottabaldwin

May 22, 2009
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