While the purposes of letters of intent will vary from situation to situation here are a few examples of why a letter of intent is used: To come up with and provide safeguards for the interested parties in the case of a potential deal falling apart.
There you have it _ the essential elements to include in a LOI. Nothing too complicated _ and if it is too complicated you will likely scare off a serious Seller! The LOI is really just a simple business letter outlining the price, terms, and conditions that you would like to get when purchasing the property. Those are the basics, and everything will vary from project to project. Again, a LOI is a great tool in your toolbox to begin discussions when purchasing real estate. Keep these steps in mind when you are looking to make your next purchase of an investment property.