Letter of Intent to Purchase REO Packages - DOC by jtarry12


									                      Letter of Intent to Purchase REO Packages



To: MSC Holdings, LLC.

This is a Letter of Intent to Purchase REO Packages for the Clients of _____(Buyer’s
Group)_________________, who at this point wishes to remain anonymous, in the
amount stated below of REO’s meeting the criteria below. This Letter of Intent is not an
offer, option, or contract and shall be considered non-binding on all parties. The purpose
of this Letter of Intent is to convey the basic deal points under which our client would
consider moving forward to a binding Purchase Agreement. Only a mutually agree upon
Purchase Agreement shall constitute as Binding.

Seller agrees to keep Buyers offer and financial wherewithal confidential, and not
publicly disclose, the contents of the Due Diligence Materials, the existence and/or terms
of this Letter of Intent, the Purchase Agreement and the transaction contemplated hereby
pursuant to the terms of a separate confidentiality.

This LOI supersedes any and all other LOI that ______(Buyer’s
Group)_______________ may have with other intermediary/ brokers with the Seller in
regards to this transaction.

This LOI will expire at 5:30pm C.S.T. ______________,200___ unless the Seller
provides to the Buyer’s Title Company the Letter of Asset and Letter of Authorization
pertaining to this transaction by the above date.

       Purchase Order Amount:
       Fair market Value (FMV):
       Property Type:
       Price Ranges:
       Property Condition:
       Location:
       Guarantee: Seller must be willing to place a Buy-Back Guarantee or
        Replacement Guarantee on properties that do not have a clear title, the FMV
        Percentage or the Condition of the Property

Ref: ___________________________________
                                  - 1 of 4 -
   We determine FMV of a subject property as:
            Contains same number of bedrooms, baths, and garages
            Comparables are plus or minus 10% in square footage of subject property
            Comparables are no more that 3 years older than subject property
            Comparables do not cross anything larger than a 4 lane divided street (2
                   lanes on direction, divider, 2 lanes in other) to be considered or
                   within 1 mile of subject which ever is the least amount of distance.
            Must have a minimum of 4 comparables
            Comparables must be listed on MLS and had sold within the last 6

   The Verbal Proof of Funds may be obtained by calling the below Title Company
   Representative. The person must be authorized by the Seller to do so and must call
   ____(Buyer’s Name)_____ prior to any contact with Title Company representative to
   give Name, Company, Phone Number, and day and time to call will be placed. Prior
   to the call, the Caller must be prepared to release the Letter of Asset and the
   Authorization to Sale or any special exceptions to the Title Company representative
   during that conversation and to verify receipt of the letters prior to ending the call. If
   caller is not prepared or authorized to complete this task, do not make the call.

   (Name of Contact)
   (Name of Escrow Company)
   (Office Phone)
   (Fax Number)
   (Cell Phone)
   (Corporate Email)
   (Personal Email)

   Remaining Process once the Buyers Title Company has the Letter of Asset and the
   Authorization to Sale, the Buyer is willing to do a simultaneous Hard-Proof of Funds
   if Seller agrees to deliver to Buyer any and all Property files and due diligence
   documents in Seller’s possession or control relating to the Property, including but not
   limited to the documents listed on Exhibit A attached hereto (collectively, “Due
   Diligence Materials”) and Purchase Agreement. If Seller is not willing to follow this
   process there will be no need to proof the funds. Please keep in mind that this process
   is in place to protect both the Buyer and Seller from fraudulent activity.

   To verify authenticity of this LOI you may contact _______(Buyer’s Name)_____
   directly with the below reference number. _____(Buyer’s Name)_______ is very
   busy and the easiest way of contact is a text message to his cell phone to initiate a


Ref: ___________________________________
                                  - 2 of 4 -
   (Buyer’s Name)

   Signature: ________________________________________
                                      Exhibit A
                           List of Due Diligence Materials

          1. A detailed list of all of the personal property of Seller at the Property.
          2. All project documentation.
          3. Legible copies of all Contracts and leases pertaining to the property.
          4. A list and legible copies of all existing public and private agency contracts
             approvals and all proposed agreements pertaining to the property.
          5. A list and legible copies of all records relating to toxic or hazardous waste
             investigations, any notices from government or public agencies with
             respect to the Property and any building plans and specifications and
             surveys respecting the Property.
          6. A list and legible copies of all licenses and permits for the use and
             operation of the Property anti all antes guaranties with respect to the
             Property, any component thereof, any interest therein or any service
          7. Legible copies of any preliminary title reports, title policies and any
             covenants, conditions axed restrictions respecting the Property.
          8. Legible copies of any surveys, appraisals, environmentals, engineering
             reports and construction documents (including drawings and
             specifications) for the property and its improvements.
          9. Legible copies of the bills issued for the three (3) most recent tax years for
             all real estate taxes and personal property taxes and copies of all notices or
             documents for any assessments or bonds relating to the Property received
             + within the last twelve (12) months.
          10. A list of all presently pending disputes, claims, actions, suits, legal
             proceedings, arbitrations or any other legal or administrative proceedings
             relating to the Property, which list shall describe in reasonable detail the
             current status of all such matters.
          11. Copies of all entitlement documentation.

Ref: ___________________________________
                                  - 3 of 4 -
                          Letter of Intent to Purchase REO Packages
                                         Notary Public

          State of:
          County of:
          Before me, __________________________ on this day personally appeared
          ___________________________, known to me (or proved to me on the oath
          of _________________________________, (or through
          _________________________________________) to be the persons whose
          names are subscribed to the forgoing instrument and acknowledgement to me
          that they executed the same for the purposes and consideration therein

          Given under my hand and seal of office, this ________ day of

Ref: ___________________________________
                                  - 4 of 4 -

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