LOI on NNN property what are things to include or ask for?
About to submit an LOI on a multi tenant NNN property. Besides my offer price and 45 days due diligence what else should I include on the LOI?
[{"id": "il9zk9h", "text": "You need a broker and a re attorney if you go to closing", "replies": [{"id": "il9zl90", "text": "*You need a broker*\n\n*And a re attorney if*\n\n*You go to closing*\n\n\\- MitchMid\n\n---\n\n^(I detect haikus. And sometimes, successfully.) ^[Learn&amp;#32;more&amp;#32;about&amp;#32;me.](https://www.reddit.com/r/haikusbot/)\n\n^(Opt out of replies: \"haikusbot opt out\" | Delete my comment: \"haikusbot delete\")", "replies": [], "depth": 2}, {"id": "ila4avt", "text": "I am going through the sellers listing broker why do I need my own broker? I would get the attorney involved after the LOI is accepted. I just want to make sure I am not missing anything in LOI.", "replies": [{"id": "ila9ro9", "text": "You need a broker. Trust me. The seller is paying a commission regardless of whether you have a broker or not. There is a good chance the seller\u2019s broker gets double commission because you aren\u2019t repped. Regardless, it\u2019s in your best interest to be represented by a local commercial broker who knows the hot points to negotiate.\n\nIn your LOI, I would have a few feasibility period extensions in the case you need phase I/phase II without going hard on your earnest. I would also spell out who pays for title costs and survey in the LOI.", "replies": [{"id": "ilc9o6e", "text": "I get what your saying but I have always seemed to have the upper hand when you go directly through the listing agent as they are more likely to work to push your deal as they get double ended. My attorney would help draft up the purchase contract as that is really what matters the LOI really isn\u2019t binding things can be changed when going into contract if I miss something.", "replies": [{"id": "ile8sm8", "text": "I hear you! You don\u2019t always need a broker depending on the situation.\n\nIn my experience, attorneys are great for negotiating the contract verbiage but don\u2019t have the market knowledge. Brokers have the market knowledge but are terrible with contracts. \n\nBest of luck!", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ila1vns", "text": "You\u2019ll also need additional time to secure financing for closing. 45 day DD + 30 days to close.\n\nI would also put a clause in there that this LOI is valid for 2 days, and once executed you have 7 days to get to a contract. This will allow you to have some leverage if the seller drags their feet.\n\nAlso add that the LOI is non-binding.\n\nI would also encourage you to engage with an attorney to help when you are drafting and/or reviewing the contract.", "replies": [{"id": "ila4u7n", "text": "If you don't put a clause in the for 7 days can the seller take there sweet time? \n\nAren't all LOI all non-binding as you have 45 days DD regardless?\n\nDoes an LOI lock the property up once accepted to where no one else can get it prior to going into the purchase contract as back and forth between attorneys can take weeks I have found?", "replies": [{"id": "ila5ili", "text": "The seller could go shop your offer to other buyers and try and get a bidding war.\n\nProbably implied they are non-binding but every one I\u2019ve ever seen had it specifically called out.\n\nYou can add an exclusivity clause as well that says basically once it\u2019s executed they can only work with you while negotiating the contract.", "replies": [], "depth": 3}, {"id": "ilb1kwb", "text": "&gt;If you don't put a clause in the for 7 days can the seller take their sweet time? \n\nJust because you put that clause in a LOI doesn't mean the seller has to abide by it.  The clause doesn't really mean anything at the end of the day.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ila9zt2", "text": "Sales history of your tenant for three years. Ask for deadline for tenant to remodel. Phase 1 environmental. Copy of current Lease agreement", "replies": [{"id": "ilc94yo", "text": "You put this into the loi or just request this later in DD? Also deadline for tenant to remodel what do you mean by this who says they need to remodel?", "replies": [{"id": "ilcanse", "text": "I put it all in LOI. If it\u2019s a fee simple deal than you own the building. You should require the tenants to maintain the building space they occupy. It is your building after all. Some agree and some don\u2019t", "replies": [{"id": "ileg2us", "text": "And any capex work done during ownership, have a cost needs analysis done with building inspection so you know what capital you will need upfront.", "replies": [{"id": "ileg5nc", "text": "Very good point", "replies": [{"id": "ilekidg", "text": "Thanks!", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ilacom4", "text": "Would you need a loan quote for the property?", "replies": [], "depth": 1}, {"id": "ilacp7x", "text": "Need financing? I\u2019m a commercial lender. Would love to compete on it", "replies": [{"id": "ilbmhol", "text": "What product types do you lend on?", "replies": [{"id": "ild7p8n", "text": "All perm financing. As far as properties, I can lend on most types, but limited terms on special purpose (included self storage and mobile home) and office. Has to be stabilized, no construction or lease ups, no bridge loans.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iladke9", "text": "You need a lawyer.\n\nIf you don't even know these basics you need to consult people that do.", "replies": [{"id": "ilbpnpl", "text": "Broker, lawyer, consultant, YouTube guru. \n\nAnyone but Reddit", "replies": [], "depth": 2}], "depth": 1}, {"id": "ilasdli", "text": "You need a RE attorney and broker, you\u2019ll regret it. A Reddit post/template online will not protect you", "replies": [], "depth": 1}, {"id": "ilblle0", "text": "buyer seller cap rate premises price feasibility period closing period commissions and any other protective language is a start", "replies": [], "depth": 1}]