Christian Osgood uses a Letter of Intent when terms need negotiating or his offer is 15% or more below asking price. He walks the property and negotiates the Purchase and Sale Agreement at the same time, but only does a full inspection after the PSA is signed.
Chapters
Are you typically submitting PSAs before you do an in-person walkthrough? The general rule of thumb, if something needs to be negotiated, so like say we have a creative contract, I wanna make sure that I put an LOI out there just so that we agree on the terms before we draft the PSA. Or if I am offering more than 15% less than the asking price, I'm always gonna submit an LOI just because the likelihood of acceptance are lower. I don't wanna waste time. Once I'm under LOI, I'll start doing some of these pieces. So I have a letter of intent on all of the properties that I'm driving out to. I got in interiors of a lot of 'em. I brought a contractor with me for one of 'em. So it's fine to do that in the, the between the LOI and PSA space, but we're actively negotiating the PSA as I'm doing this. So either under PSA or under LOI, either one is appropriate to start. I wouldn't do a full inspection without a PSA though.