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Sample offer letter to purchase property Form: What You Should Know

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Video instructions and help with filling out and completing Sample offer letter to purchase property

Instructions and Help about Sample offer letter to purchase property

Hello, it's me again, Peter Harris from Commercial Property Advisers, author of the book "Commercial Real Estate Investing for Dummies," and coach and mentor to many commercial investors across the nation. Just about every day, I receive emails from readers of my books, listeners of my podcast, and viewers of my YouTube videos. Today, I'm going to answer a one-set question in a very short video: How do you use a LOI (Letter of Intent) to make offers on commercial property? In this video, I will discuss the definition and effective use of a letter of intent or LOI. I will also cover the three main purposes of LOIs and the advantages they offer. Lastly, I will provide you with a copy of the LOI that we use here at Commercial Property Advisers. Now, let's dive into the topic. There are two basic ways to make offers on commercial property. The first is through a typical sales contract, also known as a purchase and sell agreement. The second way is by using a letter of intent or LOI. Let me explain what an LOI is: it is a one or two-page document that allows us to make offers on commercial property without the lengthy legal terms and clauses found in a 10 to 20-page sales contract. Therefore, the main purpose of an LOI is to serve as a bridge between your intent to buy the property and a legally executed sales contract. It is a simplified way of putting the basic terms on the table in front of the seller. The LOI is not legally binding but serves as a means to reach an agreement with the seller on the overall terms of the deal. Later, we can negotiate all the other details in the final sales contract. To summarize, the LOI is a...