Page 108 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

The LOI covers several key aspects of the deal. These include:

• Property address
• Purchase price
• Time frame
• Inspection period
• Deposit
• Title policy
• Closing
• Assignment
• Access
• Commissions

Let ’ s look at each of these in more detail.

Property Address

Do not refer to the property only by its business name, such as Ever-
green Mall. Be sure to use the address of the property so that there is
no confusion at any stage with similarly named properties.

Purchase Price

This is what you are willing to pay for the property, plus any other
requests regarding the price of the property. For instance, I usually
add a repair allowance in this section.
A repair allowance is what you will receive from the seller at clos-
ing for repairs that must be done to the property. Most properties need
immediate repairs at the time of sale. Some properties need much
more than others. I would rather get those repair dollars from the
seller instead of having to go into my own pocket to fi nance them.
If the seller does not want to give a repair allowance, ask him to
raise the price by the amount of the repair allowance and then give
that amount to you at closing. He should be agreeable, because these

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