Page 114 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

Access

Your LOI must state that you and any third - party contractor whom
you bring to the site (roofer, inspector, and so on) will have reasonable
access to the property during the inspection period.
You must give reasonable notice before you show up each time.
A 48 - hour notice is considered reasonable.

Commissions

Just so everyone is on the same page, state clearly who pays which
commissions. Usually the seller pays the real estate broker ’ s commis-
sion, unless you are using a buyer ’ s broker.

Here ’ s Where You Roll Up Your Sleeves

Now that you know how to put together an LOI, it ’ s time to go through
the negotiating process so that you have the joy of possessing a LOI
that ’ s signed by both parties. It ’ s the only kind that counts.
You can actually put your own signature on the LOI before or after
you negotiate. (Remember: You can withdraw it during the inspection
period and get your money back if something goes wrong.) If you ’ re
dealing with a broker, you may send over a signed LOI to start the
negotiations. If you ’ re dealing directly with an owner, you might meet
with the owner, negotiate the terms, and then draw up the LOI.
Regardless of how you do it, don ’ t commit the same mistake I did
many years ago. (You’ll see it on the next page.)

How to Present Your Offer Directly to a Seller

When possible, I like to negotiate directly with the seller and with no
middlemen . This way you can feel the pulse of the negotiations and
change strategies in midstream if you have to.

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