277: Case Study: LOI to the PSA in 10 Steps with Josh Cantwell
I wanted to jump on here for a quick solo episode and share some great news and how we got it done. We just closed on a fiercely competitive, 296-unit deal. Over the last few weeks, we’ve been going back and forth with the seller, their attorney, and the brokers to negotiate the fine details and agreements from our letter of intent. Standard stuff, right?
In our letter of intent, we agreed on a purchase price of $16.3 million and $350,000 of non-refundable earnest money to get the deal across the finish line within 90 days. We had to settle a number of issues, including the closing duration (and if the purchase price would go up if we failed to close in time), which title company we would use, and how much prorated rent the owner would receive–just to name a few.
In this episode, I want to walk you through how our letter of intent (LOI) set the framework for our purchase sales agreement (PSA) and what we did to get the best possible terms under the circumstances. For anyone about to negotiate their first significant deal (or any deal for that matter), I hope these insights will offer some value to you.
Key Takeaways with Josh Cantwell
- How we set the closing terms for this deal and why it led to a negotiation with the seller about which title company we were going to use.
- How we negotiated prorated, past due, and additional rents.
- Why everything in an apartment building, down to the doorknobs and keys, is negotiable.
- How we wrapped our negotiations to close on the property by May 1 for $19.5 million–and why it will be worth over $26 million by the time we’re done with it.
Want the Full Show Notes?
To get access to the full show notes, including audio, transcripts, and links to all the resources mentioned, visit https://acceleratedinvestorpodcast.com/277
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