Letter of Intent

Who uses them, typically?

Rina

I'm NOT a huge fan either, however where i live most banks(REO) want an offer done on "letters of intent"

Letters of intent are good for sending out mass offers and not having to have a bunch of earnest money checks tieing up your cash. Also it protects you incase several accept.....what if you made several real contract offers and 2 or more were accepted....oooops!

I used to use them, but found that I only got a response from like every 50 sent out.

and a binding contract can be on a napkin!

I have seen them used when presenting more than one option in an offer. For example you may offer $90,000 cash, or $120,000 seller finance for 5 years with $20,000 down. This way you can test the water and see what the seller is most interested in doing.

I like the idea of sending multiple options on a property. What does a "Letter Of Intent" look like. Is there a standard form or just a letter?

Al

I've been making what I call multiple offers, with my realtor writing up more than one option for the seller, within the same purchase agreement. She said it's confusing to the other agents. (But it seemed to have worked to my benefit in at least one deal this year.) Maybe a letter of intent is a better way to go?

Letter of intent. I'll have to look that up.
Also, like Al asked, would you have a copy of what one looks like?

Thanks again,

Rina

A letter of intent is just that...a letter stating your intent to buy the persons property. There is no standard form, its just your terms briefly writen in a letter. then at the end you say if you are interested contact me at 555-5555 and we drawl up a contract.

These can be used also to find seller that are not listed anywhere. Just find distressed houses and send them all a letter. This is what I used to do. I sent out ALLOT of letters until I got a call back. Typically 1% call you. I just got tired of it.

But you can use them on houses on the market too...like I said above you can send out a flood of offers on "letters of intent"

So this kind of throws an offer out there without making the seller feel like it's something OFFICIAL they have to decide yes or no on right away. Right? A little more casual and comfortable. I can see where they would have their place.

Thanks again,

Rina

Letters of Intent is an easy way to contact expired listings or fsbo that have sat a while. You can send the info and who ever is motivated may respond. It's like throwing out a fishing line and see who bites. It is a way to save your agent from writing multiple offers and running all over to present the offer to the listing agent. I've seen where it has been successful with some investors and not with others.

your input on the matter is superb sir!! Great insight