What is a letter of intent and why do I need one? In this episode, Charles explains what an LOI is, why you would use one, when you would use one, and offers a free download for listeners.
What is a letter of intent and why do I need one? In this episode, Charles explains what an LOI is, why you would use one, when you would use one, and offers a free download for listeners.
Charles:
Welcome to Strategy Saturday; I’m Charles Carillo and today we’re going to be discussing what is a letter of intent?
Charles:
Have you always wanted to invest in real estate, but didn’t have the time, didn’t know where to find the deals. Couldn’t get the funding and didn’t want tenants calling you since 2006. I’ve been buying income, producing properties and great locations that provide us with consistent passive income. While we wait for appreciation in the future and take advantage of tax laws while we’re waiting and unlike your financial advisor, we invest alongside our investors in every property we purchase. Check out to invest with harborside.com. If you like the idea of investing real estate, if you like the idea of passive income partner with us@aninvestwithharborside.com, that’s invest with harborside.com. A letter of intent or LOI is a document that outlines the main terms of prospective agreement between two or more parties prior to drafting a final legal agreement.
Charles:
The LOI is normally two to three pages long. The purpose of the LOI is to list the general parameters of a potential deal. It is not a detailed agreement. In most cases, the LOI are not legally binding. Instead of paying your attorney to generate dozens of agreements on properties, you are interested in purchasing. You simply create an LOI by using a template you already have and send it to the seller. The seller will sign counter, create a whole new LOI or ignore the deal in this entirety. The LOI allows buyers to move quickly and efficiently. It helps parties involve not waste time or money. The goal of thei is to announce the proposed deal, clarify key points and protect all parties. Thei starts the conversation of a prospective agreement and begins negotiations. Once you have assigned LOI, you will then enlist the services of your attorney to draft the actual purchase and sale agreement.
Charles:
Now, the LOI for property purchase will include date, the seller’s name, property’s address and parcel tax ID number, the purchase price, the down payment, earnest money deposit, proposed mortgage terms seller financing terms, if any repair allowance, if any inspection due diligence period who will be handling escrow, what, what title company or or attorney many Lois include a non-disclosure or non-solicitation clause prior to using LOI, I would have your attorney review your template, always have your attorney draft, the actual purchase and sale agreement. The PSA, if you’re purchasing several properties per year, or issuing issuing many Loy, I would highly suggest opening an LLC that is just for Loy offers. There will be no assets or properties in the sell side, LLC, and it will be separate from your company’s brand, LLC. For example, if your real estate brand is Bayside capital partners, LLC, your LLC for Lois and offers might be Bayside capital acquisitions, LLC. And this provides above heart between your brand and yourself from an offer. If you’re looking for a collection of editable letters of intent templates, please go to: https://www.syndicationsuperstars.com/free-letter-of-intent-template/. I hope you enjoyed. Please remember to rate review, subscribe, submit comments, and potential show topics at global investors, podcast.com. Look forward to two more episodes next week. See you then
Announcer:
Nothing in this episode should be considered specific, personal or professional advice. Any investment opportunities mentioned on this podcast are limited to accredited investors. Any investments will only be made with proper disclosure, subscription documentation, and are subject to all applicable laws. Please consult an appropriate tax legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Syndication Superstar, LLC, exclusively.
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