My New Letter of Intent
Hooray for you – we're giving away another freebie today! Not only will you get to swipe a goodie from us, but I’ve also got an awesome video for you that comprehensively covers what we're giving away.
Look, there are lots of letters of intent available out there. You could even create one for yourself and consult with your attorney before using it.
But why reinvent the wheel?
We've already done all the heavy lifting for you. (You’re welcome!) I still suggest you cover your butt and run this document by your attorney before using it, but it’s our letter of intent of choice – and it’s worked for us for years.
It’s simple, matter-of-fact and to the point. And, you’ll notice it’s only 1 page. That’s intentional. That way sellers can quickly understand exactly what we're offering them.
The Body Consists of Only 2 Parts
As you’ll see, our letter – chock-full of benefits for the seller – is really just 2 main parts:
- Property Facts
- The Bottom Line
Think of the letter as a template. Most of the information will remain the same for every deal, but we customize it based on the details of each situation.
The first section – the property facts – is where we make the most changes. This is where you list your offer price, mention any repairs needed and include the closing and contingency details.
The bottom line section reiterates our interest, and reminds the seller that we’ll be there if and (hopefully) when they are ready to pull the trigger.
And that’s it.
Go ahead and press play…
I’ll go over the tone that your letter should reflect – we’re playing it cool here, kids, and we certainly don’t want to sound salesy.
This letter simply states the facts, considers the seller’s situation and reminds them to contact you when the time is right.
Video Transcription:
Hey guys, this is JP here, hope you're doing well today. I want to share with you a new letter of intent that we've been using in our wholesaling operation.
It's really not magical, but it's cool. It works and we just kind of closed an unexpected deal that circled back around and I think we made about six grand on it. It's just a little base hit of a wholesale deal, but it reminded me that I had not yet shared this with you or how we're using it in our business.
So, if you've been with us for a minute, then you know we have shared four letters of intent some time ago. In fact, somewhere here on this here lesson, there should be a link to the previous lesson on those letters of intent.
The letter of intent I'm about to share with you here is not any of those four. Okay? At the time I made that we actually weren't really using letters of intent much, we just very rarely used them on occasion. Now we're doing this pretty consistently and I came up with this document to use and so I want to share it with you, not to say those other ones don't work. Those are still good solid letters of intent and actually the specific one you use is less important than using it the way you use it.
Important disclaimer… you've been looking at it the whole time though, since I started the video. This form is provided as-is without any warranty of any kind of expressed or implied, statutory or otherwise, use any of this form at your own risk. So do your own due diligence. Check with an attorney and all that good stuff. This form works for us, but you shouldn't use it until you've run it by your expert advisor.
All right, so let's look at it. Letter of Intent to Purchase Property.
So, everything you see in blue is what we edit every time, right? Everything else, pretty much we keep the same.
Now, I’m giving this to you in a word doc form, but you're going to have to customize everything, obviously, right, because your name is Johnpaul Moses and James Alston. That's us, we’re The House Guys. So, you're going to have to, you know, make this your own.
The date is some kind of fancy little script that automatically updates to whatever today's date is. So, I know you're not seeing, but right now I'm making this video for you on March 3, 2016. So that's what popped up. I don't have to fill in the date. It's automagic, which is pretty cool. And that should translate into the document that you're going to be downloading. It should still work the same way. Hopefully.
Obviously, the address is whatever the street address is for the property that we're sending this. So, in this case it was 4870 Marcel… this is the homeowner's address. Now this is… their mailing address is often going to be different than the actual property. Right?
“Hi, Mr. Wigington,”, I'll just read through this and, and by the way I'll tell you in a minute how we're using this, but let me just read through the document itself. “Thanks so much for chatting with us recently about your property. It was nice meeting you. As we discussed, I'm sending you this letter of intent to summarize our cash offer to purchase your property. We've learned that just you just never know when life's circumstances may change and you should always know all your options. So we want to make sure you have our offer in hand based on our initial research and conversation with you;”…
Now, let me stop before I go any further. You may have picked up on this, but the tone of this is basically us submitting a something in writing to a seller who we have not currently been able to come to terms with. We get a lot of calls from people who have maybe, you know, crappy properties in crappy parts of town. Pardon my French there, but you know, they just want more for their house than we can pay. We always make them an offer and they say thanks, but no thanks.
Well, in those situations, uh, we still want to submit something to them and we want to give them something that they can use to circle back to us down the road when reality sets in and our stupid low price actually starts to make sense. And this happens more often than you would probably think.
This deal I was just talking about where we socked a little six grand base hit was a gal who we had made an offer to. She declined the offer, was maybe even a little bit insulted. And then four months later she came back and said, okay, uncle, I give.
So, we actually use this in Click2mail. We upload this into our Click2mail account and we have our assistant Carol send this. After having a conversation with a seller, anytime we know that we haven't come to terms and we want to have her send off one of these letters, we just mark it in Podio, it automatically creates a task for her in Podio to generate a letter of intent. She gets that tasks that day or the next day and she drops into the lead in Podio. Then she hops into Click2mail. She fires off one of these letters in Click2mail and it's in their hands, right?
Now, this also is a letter that gets sent out even if we haven't even given the property much due diligence and we just want to get something in their hand.
This number right here, a lot of times is just generated from a stock formula, believe it or not, based on the Zestimate of the property. A lot of times, Carol will just take whatever this estimate is.
And yes, I know some people are like, ugh, the Zestimate! First of all, ethe Zestimate in Zillow has actually gotten a lot better nowadays than it used to be back when Zillow first came out. When the Zestimate first came out it was the laughing stock of real estate valuation, but anymore it's actually getting a lot better. Their algorithm is better.
I'm not saying you should bank on it instead looking at comps and doing your own valuation. But it's it's a good starting point. And I've said this before, but in some of our Q&A coaching calls, we often use Zillow as our starting point to construct a ball park offer and that's a lot of times what you're looking at here.
We're not making a hard, you know, we're ready to pull the trigger here in this case at $32,000. Carol and James have just looked at what's the estimate for this property? Okay, let's take that Zestimate, let's multiply it by 65 percent, let's subtract ballpark repairs from that based on just what the seller might have said in their conversation to us… Very broad strokes here… Let's subtract another seven grand off of that so we have some profit built in and then let's toss that into this letter of intent. And say we're interested in buying your property for this much.
This is not a contract, okay? This is simply a starting point.
“We're interested in buying your property for $32,000 cash. We will buy as-is so if repairs or fixing up as needed, it's no problem. We can handle any and all repairs when you sell to us so that you won't be inconvenienced. We'll close within 30 days or faster if needed, whatever works for you, really. We will pay you all cash and cover all closing costs and no fees, costs or commissions to you whatsoever. Our only contingency with this is #1, clear title and #2 final inspection by us before closing. Here's the bottom line: We are local Memphians and we love investing in our hometown. We've been buying and selling houses since 2001 and have a long track record of very happy people who we've helped move on from their house quickly and easily. If this scenario ever make sense to you, please reach out again anytime, and we will schedule an appointment to view the property and move forward from there.”
And basically me and James took an image of our signatures, we scanned it a signed piece of paper, , and then created a nice, high quality resolution graphic of them. You can just see it's just a graphic in Microsoft Word. We created a transparent png for those of you who were playing along at home and do graphic design. If you don't know what that means, that's fine, but it looks like we actually signed the document now in Click2mail when it's published. It doesn't look as good as this, but it doesn't matter really
So, by the way, the vibe I want you to notice is here is that you won’t see a single exclamation point on this letter. I do not want this to feel hypey, like I'm trying to sell them on something. What I want this to feel like we're being kind to their situation, but not we don't need them. I don't want them to feel like we're trying to sell them on us too hard.
I do want to highlight a few things here…
Number one, the facts of what, what we're suggesting as our starting point. Right? And I want to do that succinctly. I don't want it to be too terribly wordy or even, looking at this document, I want you to be able to see it's just one side of one piece of paper and it's easy to scan.
The things that are bold in it are bold because people tend to scan things first before they read them, we've been trained by the Internet to do that. So when you scan this, you're going to see, okay, this line about interested in buying for cash as is 30 days. All cash, all closing costs. Okay? I mean those are anchor points for your eyes.
If this was too wordy, if there were too many paragraphs or it was too dense, it would make your brain think, ah, I don't want to read all this. Is it worth my time? And you start having discussions with yourself about whether or not it's worth your time to read it. This is an easy thing to read, but it's also an easy thing to scan. And that's an important point in my view.
Like I said, it's not hypey, it's very matter of fact, but it does cover some real benefits to them. For example, I mentioned,
“So if repairs or fixing up is needed, it's no problem. We can handle making any and all repairs when you sell to us”… little embedded command there for you NLPers… “so that you won't be inconvenienced in the least.”
There's a benefit right there. All right? They won't have to be inconvenienced in the least.
“Will close within 30 days. But really whatever works for you, right? No fees, costs or commissions to you whatsoever.”
So, I'm basically still selling sizzle here. I'm just not trying too hard because I don't want them to think we're motivated buyers, right? So, there's a lot of my thinking actually went into crafting this letter. And hopefully you've been able to crawl inside my head a little bit now and understand.
Now, make it your own. And you know, if this is not your style, you can use this as a starting point and create your own version of this if you want to. Maybe you want exclamation points all over the place. I don't know. But at the end of the day, this is the letter of intent we're using.
And again, our standard procedure is whenever a lead comes in that we're not able to buy right now, for whatever reason, we have Carol fire one of these off through Click2mail. We just send her a task in Podio and then we get deals that come back to us down the road through this.
This is a great kind of follow-up sequence. I don't know if you really want to call it a sequence. It's just a way to give them something that they'll hold onto, a lot of them, and when the motivation gets bad enough, they'll come back to you.
Okay, so there you go guys. I hope you enjoyed that. You can download this and a swipe and deploy, use it in your business and I'd love to hear what your thoughts are.
Would you leave me a comment below? I'd really be grateful. I love hearing what you guys think about the things that we have to say and share here. So fire away and if you have any questions, let me know those as well. I'm happy to fill in any blanks if I missed anything here. Thanks guys.
Here’s how to download our “New Letter of Intent”
Step 1 ⤸
“Like” our Facebook page please?
Step 2 ⤸
Just leave a comment below sharing your honest feedback on the letter of intent template I'm freely sharing with you. Whatever you think after hearing my thoughts behind it in the video above. Good, bad, and anywhere in between. Seriously.
Alternately, I’m also interested in hearing anything else (another resource or tool) that you’d like us to share in a future “Swipe & Deploy” like this. Do tell.
Step 3 ⤸
Then Chuck Norris will hand you over my template.
Totally serious. Just try it. 😀
great information thanks
I use a very similar strategy and love the non-pushy style…
Great tips, thank you.
Thank you for all the tips and sharing the letter!
Definitely the best money I’ve spent!
Thanks for sharing, I will use this.
Love the fact that this intent letter is to the point but I will implement it in my regimen
Thanks for the great info. As always, good stuff!!
Thanks for the freebies and earning trust with the newbies!
This is nifty 🙂
I can’t believe you got Chuck to give this away for you!
Another precise document. I really like the clear and to the point document. My take away is the MAO solution with the additional subtraction of 7K over and beyond the 35% suggested for closing, holding cost, and your ROI%.
Superb.
I am looking forward to doing Win Win RE deals
I like the new letter of intent. I can send it to anyone who has an email address and a property to sell?
I think that is a great idea and it does not sound too pushy. What are the success numbers of using it so far?
This letter seems to be very effective for non-motivated sellers. Its a great way to plant a seed in their subconscious mind.
Great, another resource document in my toolbox!! Thank you.
Thank you for this. Really allows for all involved to feel valued in the process.
Looking forward to using your letter of Intent
Thank You
Love collections of templates, to choose one that matches a given situation.
Very nice that you guys help with giving us
All the tools we need
Thankyou
Great information we found Awesome!
Thanks ! Carl
Yes, I really appreciate the tone of the letter. It is not scary, but feels decent, sane, honest. Nice. Thanks ! Great content.
I thought it was good personal I felt it was friendly, empathetic, but honestly expressing your true valuation of the property. you showed interest but not too much interest.
I left a comment previously. However I would like to find out how to save it without having to repeat. My fault.
Just trying to learn how to be Awesome like you guys.
Thanks a $M…LITERALLY!!
Thanks for being the Awesomeness that you are.
Giving us these free tools is like a ninja in our heads.
Knowing what you know and what we don’t is better
than rescue mission millionaire style.
‘The mediocre teacher tells. The good teacher explains. The superior teacher demonstrates. The great teacher inspires.’ ― William Arthur Ward
Thank you for being a superiorly great teacher!
Boom!
This is a pretty good letter of intent to start with. I like that it doesn’t have the pushy points and exclamation marks like we’re yelling at the seller. I like being the reluctant buyer.
Thanks for the script.
yes, looks like something we could use! thank you
Great share! Thanks
I think it is great. I might throw in a second Payment terms or lease option term with it.
I think this letter is very awesome,
I thank you for taking the time and giving us such a great piece of your work . It’s a nice step in the right direction .
Thank You .! $$$
The Student.
Smart, clean letter. “My Style,” I thought. Can’t wait to send one out.
Thank you. I will be adding this to my arsenal.
Great letter it engages the reader and holds them till a positive decision is made .
I wouldn’t change a thing! Great format!
I love how you gave examples of conversations in your video. I’m excited to have a letter of intent that I don’t need to create. Thank you.
Awesome and straight to the point. Short but detailed with good information.
Very good Letter. I like the bold letters to catch the main point of the offer…Awesome!
Great Letter!
Amazing info!!!
I have really enjoyed this all the content in this program. Keep up the great work!
Right to the point! Thank you for the information and content!
Nice work guys.
Great stuff, never thought of this!
Great to get peoples attention
You are AWESOME! Gracias…
interesting concept with the Letter of Intent. I think that’s a fantastic way to get the sellers attention.
Great info thanks
Awesome Letter of intent, one page. Great work!
I have started reading some of your content and watching the videos and thank you for the value it all brings to my new launched wholesaling business. I am also taking the Fl Real Estate Course and will test in May, but looking forward to visiting your web often to rub against all your good vibes…GOD BLESS STAY SAFE – and Thank you!
This information is valuable thank you very much for giving this free.
Ok JP, I needed this thanks, purchased the capital syndicate and needed more information . thanks for the content.
This information is priceless thank you very much for giving this free! You guys really truly are awesome!
Great way to keep a record of contacts made and leave them something that they can use later to get in touch. Good idea.
So much value thanks!
Might help with current market.
Great GEMS as always…Thank you!
Thanks for the freebie documents!
You guys always supply the best information and paperwork.
Hi: I love the content of this LOI. Thank you.
I really think the letter is short and descriptive. Thank You
Love the simplicity and step by step process for wholesle letter of intent.
Thanks!
roy
just getting started…appreciate all the help…awesome letter
You guys are so awesome for giving away a free letter of intent
It is awesome of you to give a copy of your letter of intent to me to help me develop my business for $97.00 dollars.
You guys are so awsome for giving away a free letter of intent!!!!
Once again, my mind is blown with the AWESOMENESS of this letter!! Thank you, Guys!
I’m new to this blog. Thank you for giving a copy of these docs, I will get the others as well . I’m new starting my biz.
I like that i’s Low Key! Professional. Helps a person Move On. And the Bolded Key Points are Great,
Jan Martin
Nice!!! Thanks for the help and the douments. Can’t wait to deploy these!!
I’m new to the business and think it might work. You’re amazing sharing with us.
Well I’m new to this blog, and thank you for giving a copy of all these doc, I will get the others as well . I’m new starting my buss in REI.
Thanx again
I want to thank you! Once again you give readers so much value. A letter of intent that is short and sweet, and makes me look like a seasoned professional. Awesome REI, you are simply Awesome!
New concepts with a refreshing look.
Letter Of Intent please awesome rei
Great letter
I love how the letter flows and I definitely would love to use that after my meetings with prospects.
Just what I needed for contacting potential sellers Great letter
Great Letter
Just came across your letter of intent. and love it. It’s a nice example. I would love to have it
Take care
Shehz
Great tool thank you so much.
Thanks for this opportunity to add this Letter to my stock at NO COST.
You are awesome for giving this to you at no cost.
Thanks
Always looking for ways to improve my craft & this looks like just the ticket!
I like the simple approach, cant wait to use
Great tool to use to convenience homeowners to sell their home. Great job guys!!!
Hmmm…I think this just might work!
Great. a good letter of intent. Straight to the point. Thank you.
Sabastian
you Guys are awesome we are for giving this to you at no cost.
Thanks
Luv this short and sweet LOI, JP !
great video thanks again guys.
I am sure this will come in handy. Thanks!
Great Tool! I need this, thanking you in advance!
I like this. It’s simple to understand and very straight forward.
Great Tool! I need this, thanking you in advance!
This is some great information. I appreciate you sharing.
I’m just gonna keep getting all your freebies like this letter. It’s all good.