Who uses a letter of intent - Posted by JohnK(CA)

Posted by Mel_W on April 20, 1999 at 17:19:03:


Glad to hear that from you. I’m just starting out and sent my first letter of intent to purchase…after I met and spoke with the prospective seller…You are right, helps to know their needs beforehand.


Who uses a letter of intent - Posted by JohnK(CA)

Posted by JohnK(CA) on April 19, 1999 at 18:40:30:

I am interested in finding out how many of of the active investors in this group regularly use letters of intent. Do you use them as a first contact, to open up negotiations with the seller either directly or through an agent? If you are using this as a first contact, do you propose multiple methods for the purchase/lease of their property?
Any input is appreciated.

Re: Who uses a letter of intent - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on April 20, 1999 at 06:40:44:

I use letters of intent on all my negotiations. Most of the time agents will tell you that they must have a signed contract in order to take an offer to the seller. That is baloney! I simply explain to them that I don’t want to waste anyone’s time with writing up, meeting to sign, and writing earnest money checks. I assure them that if we make a deal, I will follow through with a signed sales contract and earnest money. They almost always go along with this. After the first letter of intent, most of my negotiations take place with phone calls back and forth.

I do not use the letter of intent for a first contact. You should meet and talk to the seller to get to know their needs before you write up any offer. Once you build a relationship with the seller, negotiations will go much more smoothly.