How to Write a Letter of Intent (LOI) For a Bulk REO Purchase
If you are looking to purchase a bulk REO(Real Estate Owned) from a seller, you have to provide a Letter of Intent (LOI) to the seller as a first step. An LOI should be written by the buyer and makes the first impression on the seller. A professionally written LOI should contain the following information:
- Name of the Company the Buyer is representing
- Address of the Corporation
- Name of the Buyer's Mandate
- Dated within the last 30 days
- Information on the geographical area where property is desired
- Purchase price the buyer is willing to pay including fees
- Type of property desired (residential, commercial etc)
- Level of rehab acceptable (low, medium, heavy etc)
- Due diligence period the buyer is willing to accept
- Closing time after due diligence
- How the buyer will show Proof of Funds (POF) to the seller
Real Estate Corporations, Inc.
123, Main Street
San Francisco, CA 94101
(123) 456-7890
November 27, 2009
To Seller of Records,
This LOI from Real Estate Corporations, Inc. is for the purpose of obtaining a portfolio of REO properties that meet the criteria specified below:
- Purchaser: John Smith
- Buyer's Mandate: Jack Jones
- Portfolio Price: 50Million USD
- Discounted Price: Up to 57% of BPO + 4% Fees
- Geographical Area: Northern California Only
- Property BPO Range: $250,000 to $1,500,000
- Property Type: Single Family Residence (SFR)
- Level of Rehab: Light to Medium
- Due Diligence Period: 72 hours
- Closing: Within 48 hours after due diligence
- Proof of Funds: Soft POF from Attorney attached
- Contact: Buyer's Mandate on listed phone number
Please contact Real Estate Corporation's Inc. upon receipt of this letter for further correspondence and completing all paperwork.
Signed and Dated by Buyer:
Signed and Dated by Buyer's Mandate:
Source by Anuradha Atharva
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