Letter Of Intent To Purchase Real Estate: Fill & Download for Free

My wife and I paid off our house in late 2017 and this is what happened to us.We called the bank and informed them of our intent to pay off the mortgage in full. They responded that they needed $x by 5pm to have the mortgage paid off in full. We told them to look in the one account we had at their bank and that we have already moved the money into that account. They transferred the money from our account on to our mortgage account, hence paying it off.We drove to the branch where we first got the mortgage 18 months prior and brought some cupcakes and coffee. We treated the staff because we were celebrating having just paid off the house and being 100% debt free.Our loan officer was surprised and said, “I knew you guys wanted to pay off the mortgage early but I never expected this early.” Our original plan was 4–7 years. Dave Ramsey (financial talk show host) says most working his plan pay off their house in 7 years and most millionaires pay off their house in 10 years. We were lucky to come upon an investment that took off that we were able to sell it and pay off the house. This resulted in a huge nearly $70k tax bill (answer for a different question).Dave Ramsey says once you pay off your house to go outside and walk through the grass barefoot because it will feel different. We didn’t take his advice because it was nearly winter time and snow was on the ground. Instead, my wife and I continued our celebration by going to a local fine dining restaurant to enjoy a nice meal. Emotionally, we didn’t feel different at all, it was like nothing really happened.The following month we noticed an extra $1,600 in the bank account that we moved off into a separate account to save and invest for the future. That same month we received a letter from the bank that our mortgage was paid and we received communication from the county that our deed to our house was now clear.It took three months from the time we paid off the house to have an emotional change. Perhaps this is because it was now March 2018 and the snow had melted and we could actually go outside and feel the grass under our bare feet. I’m not sure, but what happened is that my wife and I realized that we don’t need to keep on going to the same job every day. We could choose to be a baker at the Walmart Deli if we wanted to be. We could choose to be a photographer. We could choose to be whatever we wanted to be. We were no longer beholden to our job that makes a good salary so that we can afford the mortgage payment every month.This realization gave us more flexibility with our life choices and our careers. We also realized that we have been working so hard on financial goals to get out of student loan debt, save up for an emergency fund, save up for a down payment, pay off the house, etc. that we didn’t have a future goal anymore other than to save for retirement. This is when we realized that we needed another short term goal and we both decided to buy more real estate in cash and we needed to start saving up for it.Then April came along and we needed to pay our first half payment of our property taxes. Then May came along and we needed to pay the full year of our home insurance. Then October came along and we paid the other half of our real estate taxes. By this time in October we found the real estate area that we wanted to purchase in. By April of the following year we made another tax payment and we flew to the area where we wanted to purchase our next real estate and we paid cash for it in May. We also found more real estate in the same area and started saving up for that as well. We are planning on going back next year and paying cash for more property. We plan to continue doing this while we can.So what happens when you finish paying off your house? You get the freedom to make choices in your career that you might not have otherwise made and you get to invest in cash and grow your wealth. I recommend everyone pay off their mortgage and get on the path to wealth building. It is really the only way.Update: >2.5k Upvotes - thanks to all of the upvotes, I hope this encourages you to keep working hard and paying down the mortgage. Hard work does get rewarded and every extra bit of excess money should be used to accomplish this debt-free dream!

A "Letter of Intent" in the real estate industry is often simply a "Letter of Interest" submitted to an owner by a prospective tenant or purchaser, setting forth the business terms upon which that party is willing to lease or purchase a property. It is a unilateral, non-binding "offer" from which the parties may then negotiate an agreement.

The best way to make money when you are starting up in real estate is to line up deals for the buyers who are investors or syndicators with deep pockets.The way you weed out the serious ones is by talking to them and showing them that you can offer your time and effort to get them the deals they are looking for and present to them each deal in the way they want to see it.I made millions in real estate focusing on a few strategies. I will share with you here how I work with those who want to start in the business with no risk and potentially high returns (see number 10 how I work with people starting out) - many other successful investors, even in residential, have similar strategiesI focus mainly on single tenant commercial properties (stand alone buildings that can accommodate Jamba Juice, Starbucks, subway etc)I put the property under contract for approximately 45 days for due diligence (no obligation to buy)I contact as many National brand tenants and give them info on the locationI get one interested and I negotiate turn receive a LOI (letter of intent from them to lease)The LOI from a national tenant that wishes to occupy a property like this is usually for 10 yrs (sometimes 15 yrs) with their corporate guarantee and the basic terms of NNN (where the Tenant pays the property taxes, insurance and maintenance). All this makes the property value go way higher than my contract to purchase when the property was vacant (example: property under contract vacant for $600k. Once I have the national Tenant’s LOI paying X for so many years with the corporate guarantee etc the value jumps way higher based on the expected income and that same property could easily become worth around $1mil now)This is when I buy the property either all cash or with with a loan. then I sign with the tenant and refinance within 90 days to get all my money back outThis gives me 100% loan on the original purchase price (in the example I have here, it would be a $600k loan) while the property gets valued at $1mil or soThe cash flow is positive (interest rates are low and rental income is higher) with no management or other expenses (retail tenants pay almost all associated expenses)I reinvest doing the same thing over and overThis strategy made me a lot of money through the years and I even improved on it a bit by buying mixed use properties where the upstairs could be used for office or residential which added to my cash flowI even set up my own real estate funds and syndications over 10 years ago (started that in early 2009) and I train people to identify these buildings and partner with me all over the US and once they follow my direction to line up a national tenant they assign the deals to me for huge profits to them (see success stories on YouTube)I want to be clear that those who do it with me do not have to use any of their money to buy the property: I give them the proof of funds, the tenant lists of over 4000 national brands, the script to know what to say to the tenants, and the support to close these tenants. I actually get on the conference calls with the tenants they lined up and I negotiate the terms of the LOI and then they get paid through escrow when we close the deal within 45–60 days (in a deal like this that went from $600k to $1mil which is $400k increase in value I pay an assignment fee to my students of $40k+ through escrow)Btw if I or any of my students who Joint Venture with me on deals like this fail to get an national tenant interested in the location within 44 days we simply cancel the contract and walk away with zero risk (whatever earnest money deposit that was placed in escrow is fully refunded)This is how I buy and hold long term cash flowing properties with: a) instant increase in value, b) no management headaches, c) automatic increase in rent of 3% per year, d) corporate guarantee, e) infinite rates of returns (since I get to refinance and cash out all my money within 90 days). The key thing is all the work is done before I commit to buying and tenants must commit to leasing the property or I simply don’t buy itI ended up even becoming the largest owner of historic retail and mixed use properties in Old San Juan, Puerto Rico even though I was based in CA and I continue to grow nationwide doing it with others through my real estate fundHope this gives you an idea of how you can go from zero to millions in net worth and received huge cash flow income in relatively a short period of time with no hassles and low to no risk (you can do the same and even grow with your own fund duplicating this strategy and system)Good luck to you in your buy and hold endeavors