How to write a Loi to buy apartments

In Buying Property - Asked by ronnie r. - Mar 27, 2011
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Answer(s)

Michael C.
Corporate Investor
Santa Ana, CA

what do you put into a LOI for a commercial office building to cover all of the major busines points?

Mar 27, 2011
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Stasiu G.
Broker/Agent
Cincinnati, OH

An LOI for apartments is pretty simple. State your price, finance terms, due diligence time and closing date. The rest is specific to the deal, but those are the basics.

Mar 28, 2011
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Rob B.
Chandler, AZ

Ronnie...
The major points you want to put in are:
Location and identification of property
Price offered
Closing period
Escrow and title choices if any
Time to prepare purchase agreement after acceptance of LOI
Financing contingency if any
Deposit amount (with any benchmark additions to deposit if necessary)
Due diligence items to properly analyze the property, prior to deposit going hard
Due diligence period
Conditions under when the deposit goes hard
If you would like to have a copy of an LOI that I typically use, please email me at www.rob@capratecommercial.com
Onward and upward…. Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: rob@capratecommercial.com

Apr 5, 2011
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Andrew S.
Broker/Agent
San Diego, CA

First of all it is important to note an LOI is non binding.
You will want to include the property Address and APN
The Selling Entities Name
The Purchase Price
Deposit (Amount and Terms) ie. within three days of execution of an agreement.
Due Diligence Time Frames
Escrow/Title Holder (usually sellers choice)
Closing time frame.
Brokerage Comission
Other Terms- ( Cooperate with Exchange)
Acceptance- (Seller shall have untill this date to accept the offer)
Andrew Slade- Marcus & Milichap- (858) 373-3100

Apr 6, 2011
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Chris R.
Broker/Agent
Denton, TX

Most use an LOI that covers all the basics. I have one I have used for years. Advise if you want a copy. Happy to share.

Apr 7, 2011
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Bill A.
Broker/Agent
Anaheim, CA

Ronnie, Did you get your LOI in? Did this community help you?

May 5, 2011
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