Resources

LETTER OF INTENT TO PURCHASE REAL PROPERTY

Date: [DATE]

To: [OWNER NAME]
Property Address: [PROPERTY ADDRESS]

Dear [OWNER NAME],

I am writing to express interest in purchasing the above-referenced property. This letter outlines the general terms under which I would be prepared to move forward with a formal purchase agreement. This Letter of Intent is non-binding and intended solely to facilitate further discussion.

Proposed Terms:
1. Purchase Price: $[AMOUNT]
2. Earnest Money Deposit: $[AMOUNT], held in escrow
3. Financing: [Cash / Conventional / Other]
4. Closing Date: On or before [DATE]
5. Inspection Period: [NUMBER] days from acceptance
6. Contingencies: Satisfactory inspection, clear title, [OTHER]

This offer is preliminary and subject to a mutually executed purchase agreement. I look forward to your response and am happy to discuss further at your convenience.

Sincerely,
[YOUR NAME]
[PHONE / EMAIL]

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This is a general-purpose starting point, not legal advice. Have any offer reviewed by a licensed real estate attorney before sending or signing.

Dear [OWNER NAME],

My name is [YOUR NAME], and I'm a local real estate investor. I noticed your property at [PROPERTY ADDRESS] and wanted to reach out directly in case you've ever considered selling — no pressure at all if not.

I buy properties as-is, which means:
- No repairs or cleaning needed on your end
- No agent commissions
- A flexible closing timeline that works around your schedule
- A fair, no-obligation cash offer

If you'd ever like to talk, even just to see what your property might be worth, I'd be glad to have a no-pressure conversation. You can reach me at [PHONE] or [EMAIL].

Thank you for your time either way.

Warm regards,
[YOUR NAME]
[PHONE / EMAIL]

PROPERTY INSPECTION CHECKLIST

INTERIOR CARPENTRY
[ ] Framing / structural (sagging floors, cracked walls, uneven doorframes)
[ ] Interior doors (condition, fit, hardware)
[ ] Windows (seals, function, damage)
[ ] Drywall (cracks, water stains, holes)
[ ] Trim work (baseboards, casing, crown molding)
[ ] Chimney (condition, cap, visible damage)

COSMETIC
[ ] Paint, interior and exterior
[ ] Flooring condition throughout
[ ] Fixtures (lighting, hardware, plumbing)
[ ] Overall cleanliness / move-in condition
[ ] Shelving and built-ins

BATHROOMS
[ ] Condition of each bathroom (note full remodel, partial remodel, or resurfacing only)
[ ] Ventilation / exhaust fans
[ ] Fixtures and caulking

UTILITIES
[ ] Plumbing (visible leaks, water pressure, pipe material)
[ ] Water heater (age, capacity, condition)
[ ] Electrical panel and wiring (age, capacity, visible hazards)
[ ] GFCI outlets present where required (kitchen, baths, exterior)
[ ] Furnace (age, last serviced, condition)
[ ] A/C (age, condition)
[ ] Heat pump, if present
[ ] Sewer line (camera inspection if there's any history of backups)
[ ] Well, if applicable (condition, flow, last serviced)

KITCHEN
[ ] Overall condition (note full remodel, partial remodel, or resurfacing only)
[ ] Appliances (age, condition, included in sale)

ROOF
[ ] Roof condition (age, missing shingles, sagging)
[ ] Soffits and fascia
[ ] Gutters and downspouts

EXTERIOR CARPENTRY
[ ] Siding / exterior walls
[ ] Exterior trim
[ ] Decks
[ ] Exterior doors
[ ] Garage door

CURB APPEAL
[ ] Landscaping
[ ] Trees needing removal
[ ] Power washing needed
[ ] Fencing condition
[ ] Parking (street access, additional parking potential)

OUTBUILDINGS (if present)
[ ] Siding
[ ] Roof
[ ] Doors
[ ] Demo needed / structurally unsound

OTHER
[ ] Signs of pests or wood rot
[ ] Items needing demo
[ ] Foundation (visible cracks, settling)
[ ] Crawlspace (moisture, mold, encapsulation needed)
[ ] Sump pump / French drain, if present
[ ] Grading / drainage away from foundation
[ ] Weird or awkward layout (factor into ARV, not a repair line item)
[ ] Anything else that stands out

DOCUMENTATION TO REQUEST
[ ] Most recent tax bill
[ ] Utility cost history
[ ] Any permits for past work
[ ] Survey, if available
[ ] HOA documents, if applicable

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This checklist mirrors the categories in our Rehab Budget calculator — walk the property with this list, then plug what you find into the calculator to price it out. Supports a visual walkthrough, not a substitute for a licensed home inspector before closing.

SELLER APPOINTMENT CHECKLIST

BEFORE
[ ] Research the property
[ ] Verify owner(s)
[ ] Review mortgage / equity
[ ] Review tax status
[ ] Review sale / listing history
[ ] Pull comps to determine ARV
[ ] Confirm zoning / use
[ ] Review flood / environmental concerns (is flood insurance required?)
[ ] Check for open code violations or permits
[ ] Review HOA rules and dues, if applicable
[ ] Prepare questions

DURING
[ ] Understand the reason for selling
[ ] Determine desired timeline
[ ] Ask about property condition
[ ] Ask about major improvements
[ ] Ask about known issues
[ ] Determine occupancy
[ ] Discuss mortgage / payoff situation, where appropriate
[ ] Complete inspection / walkthrough
[ ] Take photos / notes with permission
[ ] Discuss the seller's preferred outcome
[ ] Explain available options
[ ] Review possession or other agreements with the seller, if applicable

AFTER
[ ] Confirm rehab scope
[ ] Obtain contractor bids, if needed
[ ] Understand the potential holding-cost timeline, including possession period if applicable
[ ] Use the Maximum Allowable Offer calculator as a guideline for potential profit
[ ] Calculate offer
[ ] Record appointment notes
[ ] Set next follow-up
[ ] Create a To-Do for next steps

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Walk in prepared, listen more than you pitch, and don't calculate your offer until after you've heard the seller out.

CONTRACT TO CLOSE CHECKLIST

Starts once you have an executed contract in hand.

CONTRACT
[ ] Confirm executed contract
[ ] Verify inspection / due-diligence deadline
[ ] Verify closing date
[ ] Deliver earnest money

TITLE
[ ] Order title through the title company
[ ] Review title commitment
[ ] Resolve title exceptions / issues
[ ] Confirm ownership
[ ] Confirm clear title with the title company prior to closing

FINANCIAL
[ ] Finalize financing
[ ] Confirm insurance is obtainable; order before closing
[ ] Finalize project budget
[ ] Schedule contractors, order materials
[ ] Verify taxes
[ ] Review closing statement

CLOSING
[ ] Final walkthrough
[ ] Start utility services
[ ] Confirm funds
[ ] Verify closing documents
[ ] Confirm possession
[ ] Confirm deed recording

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Not legal or financial advice — for anything title, lien, or contract-related, involve a licensed attorney or title company before closing.

There are a few ways to look at a house. You can determine "Market Value" — what it's worth in its current condition today (helpful if you intend to do minimal repairs and list it as-is, or rent it out as-is) — or you can determine "After Repair Value" (ARV) — what it's worth once you've completed the rehab, which is what investors typically mean when they're evaluating a flip. "Comps" (comparable sales) are how you estimate what a property is actually worth by looking at similar properties — in the same condition for Market Value, or in rehabbed condition for ARV — that sold recently nearby. A solid comp set follows a few rules: Stay close in distance and time. Within half a mile and sold in the last 3–6 months is a reasonable starting point in most markets — wider if you're in a rural or low-inventory area. If you know your area well, staying within similar neighborhoods is more useful than a strict radius. Match on the things buyers actually pay for. Bedroom/bathroom count, square footage (within ~20%), lot size, age, style, and condition matter more than an exact address match. Adjust, don't just average. If your subject property has no garage and your comps do, that's worth a dollar adjustment — not just averaging the comps' prices as-is. Separate "sold" from "listed." Active listings tell you what sellers hope for; closed sales tell you what buyers actually paid. Weight closed sales much more heavily, and weight more recent closes more heavily still. Comps also tell you what repair grade to aim for. That's worth figuring out early — it's what you'll lean on when you're estimating repairs at the appointment, not just when you're pricing the property. Closed sales give you the better price comparison for your final number, but active listings are still worth a look — they're your competition once you list. Check a range around your target price point, regardless of size or style, just to see what else buyers will have to choose from. That tells you whether to be more conservative on your number, or whether you need to raise your repair grade to compete. Sanity-check with price per square foot. It's not perfect, but a comp that's wildly out of line on $/sqft or days on market compared to the rest of your set is worth double-checking before you rely on it.

"Distressed" can mean a lot of things — pre-foreclosure, tax delinquency, code violations, deferred maintenance, or an absentee/inherited owner who hasn't kept up with the property. A few things to evaluate before you get attached to a deal: Understand why it's distressed. A property behind on taxes because an elderly owner passed away and the estate hasn't settled is a very different situation — and negotiation — than one in active pre-foreclosure with a hard auction date. Separate cosmetic from structural. Paint, carpet, and dated fixtures are cheap. Foundation issues, roof structure, and major system failures are not — and they're the ones that turn a good deal into a bad one. Check the timeline pressure. Some distress situations (auction dates, foreclosure sale dates) come with hard deadlines. Know the actual date, not just "it's in foreclosure," before you build a negotiation strategy around urgency that may not exist. Price in the unknowns. Distressed properties often come with less information, not more — fewer records, less owner cooperation, sometimes no interior access before close. Build a bigger contingency into your numbers than you would on a normal purchase.

A deed history tells you the chain of ownership for a property — who has owned it, when it transferred, and how (a sale, a gift, an inheritance, a foreclosure). A few things worth knowing how to spot: Deed type matters. A warranty deed generally provides broader title warranties than other common deed types, but it does not by itself prove that title is clear. A quitclaim deed transfers whatever interest the grantor has — which could be nothing. Quitclaims are common in family transfers, divorces, and some distressed situations, and they're worth a second look, not an automatic red flag. Short ownership gaps can be meaningful. A property that changed hands twice in six months might be a flip, or might signal something else worth understanding before you make an offer. Sale price isn't always market value. A $1 deed, or one recorded "for love and consideration," usually means the transfer wasn't a market sale at all — common between family members or into a trust. Look at the pattern, not just the most recent entry. A full deed history often tells a more useful story than the last sale alone — long-term ownership, an inherited property, or a chain of quick flips all mean different things for how a seller might respond to an offer.

Equity — the gap between what a property is worth and what's owed against it — is one of the most useful signals in property research, but it's easy to misread. High equity doesn't mean high motivation. A long-term owner with no mortgage at all might have the most equity on the block and zero interest in selling. Equity tells you what's possible financially for the owner, not whether they want to. Low or negative equity changes the conversation, not necessarily the opportunity. An owner underwater on their mortgage may need a short sale, a more creative structure, or simply isn't a fit for a straightforward cash offer — worth knowing before you invest time. Recorded mortgage amount isn't a payoff balance. What's on file is typically the original loan amount — or, for a line of credit, the full credit limit regardless of how much has actually been drawn — not a live payoff figure. It still sets a useful ceiling (the current balance is never higher than the original amount), and a mortgage recorded many years ago has likely amortized down further than one from last year. Treat it as a rough signal to pair with how long the mortgage has been on record, not a precise number. Equity is a starting filter, not a conclusion. It's most useful for narrowing a long list of properties down to ones worth a closer look — the real story still comes from combining it with ownership history, distress signals, and, eventually, an actual conversation with the owner.

An absentee owner — someone who doesn't live at the property — is often more open to a conversation than a live-in owner, but the approach matters. A few principles that hold up: Lead with genuine curiosity, not a script. "I noticed you own a property at [address] and wanted to check in" reads very differently than a form letter that's obviously mass-produced. Respect that you don't know their situation. It could be a rental they're happy with, an inherited property they haven't dealt with yet, or something they'd love to be rid of. Don't assume distress — ask an open question instead. Multiple light touches beat one hard push. A short letter, followed weeks later by a follow-up if you don't hear back, tends to work better than repeated aggressive outreach. Make it easy to say no. Explicitly telling someone "no pressure if this isn't the right time" often gets a better response than an offer that implies urgency they don't feel. Always include a real way to reach you. A phone number and email, not just a form — people respond to the option that feels lowest-effort for them.

Property Lantern isn't just a tool for investors — deed history, ownership, and tax records are useful for prospecting and listing prep too. A few ways to use it: Farm with ownership data, not guesswork. Ownership tenure can help you segment a neighborhood and tailor your research. A long-held property may have a very different ownership, equity, improvement, and sale history than one purchased recently — giving you more context before outreach. Spot absentee owners before they list. An owner who doesn't live at the property — a landlord, an inherited property, a relocation — is often closer to a listing decision than an owner-occupant, and it's worth a different kind of outreach than a cold farm letter. Use deed and tax history to get ahead of objections. A seller who hears their deed history, tax trajectory, and prior sale price from you before they find out on their own builds more trust than one who discovers a lien or a tax delinquency mid-process. Pull comps the same way investors do, just for list price instead of offer price. The comp discipline in our "How to Run Comps and ARV Like a Pro" guide — distance, recency, like-for-like, closed vs. active — applies just as directly to setting a listing price as it does to an investor's ARV.

Underwriting and renewal conversations go faster when you walk in with the right background on a property. A few things worth checking before a quote: Roof age and type matter more than almost anything else. Many carriers price — or decline — heavily based on roof age. Deed and improvement records can help confirm when a property last changed hands or had permitted work, a useful starting point for roof-age questions even when the exact install date isn't on file. Flood zone designation changes the conversation early. Confirming flood zone status before a quote avoids a surprise mid-underwriting, and it's worth double-checking independently rather than relying solely on what an applicant reports. Occupancy status affects risk. An owner-occupied property is underwritten differently than a long-term rental or a vacant one — ownership and occupancy signals are a quick way to confirm which situation you're actually quoting. Permit and improvement history is a useful cross-check. A property with recent permitted electrical, plumbing, or structural work carries different risk than one with none on file — worth asking about directly if nothing shows up in the records.

Property records aren't just for people trying to buy — they're useful for finding work and scoping it accurately, too. A few ways to use them: Age and system data point to upcoming replacement work. A property's build year and any recorded improvement history are a reasonable starting signal for aging roofs, HVAC systems, and water heaters — the kind of jobs that come up on a predictable cycle. Distress and ownership signals point to deferred maintenance. A property with a tax delinquency, an absentee or inherited owner, or a long gap since any recorded improvement work is more likely to need the kind of larger rehab work that pays better than routine repairs. Scope with the same category structure investors use. Our Rehab Budget calculator breaks repairs into the categories contractors actually bid against — carpentry, cosmetic, bathrooms, utilities, kitchen, roof, exterior, curb appeal, outbuildings — which doubles as a solid walkthrough structure for building your own estimate or bid. Know who you're bidding to. Ownership and relationship records help confirm you're quoting the actual decision-maker — not a tenant, a property manager without signing authority, or an heir who isn't the one handling the estate.