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This is an example of the Multiple Offer Strategy
being used on a junker via a Letter of Intent

 

Mr. Realtor

Century 21 Four Seasons

Dear Mr. Realtor:

Hello from sunny (and quite hot) south Florida. As discussed by phone, we are very interested in the property at 123 East Lake Road. Because there are several ways we are willing to purchase the property, we thought a letter of intent outlining each would be most expedient. We very much like the property and are willing to buy it in any one of the following ways:

  • 1) We will pay $80,000 with $5,000 down and the seller taking back a 1st mortgage in the amount of $75,000, with payments of $600 per month until paid. We're obviously not putting up much cash at closing here, because we plan to put it into the property right away - which of course improves the collateral.

    • OR...

  • 2) We'll pay $75,000, get a 1st mortgage for $50,000, all of which goes to the seller naturally, and we're already approved! The seller takes back a 2nd mortgage in the amount of $25,000 at 5% for 15 years. Again, we're not putting up much cash at closing here either, because we need to put it into the property.

    • OR...

  • 3) We'll pay $70,000, ALL CASH, closing in as few as 15 days from contract acceptance.

    • Please understand that all are contingent upon satisfactory septic inspection only. No building inspection contingency and no mortgage contingency.

    We look forward to a favorable response, so that we can draw up a contract and close at a mutually agreeable time. We are prepared to close quickly.

    We will show good faith by giving you a $1,000 earnest money deposit to be placed in your escrow account upon contract acceptance.

    Sincerely yours,

    Helen & Cameron Dunlap

    Here's another example in the form of an addendum to contract.

    Addendum to Standard Purchase and Sales Contract

    Between:          Buyer(s)                                                                                  

                            Seller(s)                                                                                   

    Dated:                                                                                                             

    Please choose (circle and initial) one of the following options:

    1.   Purchase Price           $37,000

          Down Payment          $  5,000

          Mortgage                  $32,000

          Interest                          -0-

          Term                         100 mo.

          Payment                    $320/ mo.

    OR

    2.   Purchase Price           $34,000

          Down Payment          $  4,000

          Mortgage                  $30,000

          Interest                          5%

          Term                         180 mos.

          Payment                    $237.24/ mo.

    OR

    3.   Purchase Price           $31,000

          Down Payment          $  3,000

          Mortgage                  $28,000

          Interest                          7%

          Term                         360 mos.

          Payment                    $186.28/ mo.

    Agreed to by Buyer(s)                                                                                     

                                                                                                                           

    Agreed to by Seller(s)                                                                                      

                                                                                                                           


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