Apartment Investing _ Letter of Intent Or Offer to Purchase? Which is better, a Letter of Intent or Purchase Offer? This is a frequent question for apartment investors looking to make a purchase. Before we get too far, here is my quick definition of the two documents: 1. Purchase Offer, or Purchase Agreement _ A legal document that describes the price, terms, contingencies, and other details of how a buyer would be willing to purchase a piece of real estate. 2. Letter of Intent (LOI) _ A preliminary document outlining the price, terms, and other transaction details that a buyer would be be interested in purchasing a piece of real estate.
The difference is a Letter of Intent is basically a letter stating the kind of offer you are contemplating in making. Usually it contains what I call the GENERAL items of price, terms and closing date. Most of the other legal STUFF is left out.