A letter of intent, LOI, is a non-binding proposal between a buyer and seller. This is the first step in most transactions where an investment property is being sold.
The average LOI is 2-3 pages long and outlines the most important points of the deal like price, earnest money and contingencies.
An LOI memorializes the terms of a proposed deal before it’s handed over to the attorneys to finalize with a Purchase and Sale Agreement (PSA).
An LOI is a tool that’s used to figure out if there’s a deal to be made – without racking up legal fees. It’s also useful to avoid wasting everyone’s time.
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About Beau Beach, CCIM
Beau is an elite Investment Real Estate Broker, Forbes contributor, author, investor and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.
He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.
Beau leads Prowess IRES which specializes in selling investment real estate for the absolute highest price the market will pay. Wisconsin, Florida and Illinois.
Beau can be reached at 414-324-4938, 561-425-9935 or Beau@ProwessIRES.com