The Only Letter of Intent Template You Need (Cash, Sub-To, Seller Finance, Novation)

Why most wholesaler LOIs fail before they get read

A Letter of Intent is not a contract. It is a pitch disguised as paperwork. If your LOI looks like a lawyer wrote it for a Fortune 500 merger, you lose motivated sellers in the first 10 seconds.

These four templates are what we actually use. Plain English, one page each. Earnest money is post-inspection, always. You can copy them straight from this post or generate them in one click inside ParcelMatch AI.

Non-negotiables on every LOI

1. EMD post-inspection only. Never submit earnest money before walking the property or passing due diligence. This is the single most common way new wholesalers lose deposits.
2. No counterparty language in your PSA. The LOI is yours. If the seller wants edits, they respond on your paper.
3. "Non-binding letter of intent" right in the title. Protects you legally. Forces seller to sign your real PSA later.
4. No interest rates on creative finance deals. Principal-only payments preserve optionality.

Template 1: Cash offer (65 to 70% of ARV)

NON-BINDING LETTER OF INTENT

Date: [date]
From: [Your Legal Name or Entity]
To: [Seller Name]
Property: [full address]

Purchase Price: $[offer_amount]
Earnest Money Deposit: $1,000, due after inspection is satisfactorily completed.
Closing: On or before [target_date], or 21 days from inspection, whichever is later.
Inspection Period: 10 business days from mutual execution of the purchase agreement.
Financing: All cash. No loan contingency.
Title: Buyer selects title company. Closing costs split per local custom.
Assignment: Buyer may assign this contract.
As-Is: Property is purchased strictly as-is, where-is, no warranties.

This letter is a non-binding expression of intent and does not create any obligation.
A fully executed Purchase and Sale Agreement is required for any binding obligation.

[Your signature]
[Your name, phone, email]

Template 2: Subject-to / mortgage takeover

NON-BINDING LETTER OF INTENT - SUBJECT-TO ACQUISITION

Terms:
 - Buyer assumes existing mortgage balance of approximately $[balance].
 - Buyer pays seller $[moving_money] at closing for moving costs / equity.
 - Deed is transferred to Buyer or Buyer's assignee at closing.
 - Mortgage remains in Seller's name; Buyer makes all payments via servicing.
 - Buyer pays all property taxes, insurance, HOA, and maintenance forward.

Earnest Money: $500, due post-inspection.
Closing: 21 days from inspection acceptance.
Inspection: 10 business days.
Title: Buyer's choice of title company.

This is a non-binding letter of intent.

Template 3: Seller financing (principal-only)

NON-BINDING LETTER OF INTENT - SELLER FINANCING

Purchase Price: $[price_at_110_percent_of_asking]
Down Payment: $[approximately_8_percent_of_price]
Monthly Payment: $[approx_40_percent_of_70_percent_of_projected_rent]
Amortization: Principal-only payments until paid in full.
Term: 30 years or until balance is zero.
No interest. No prepayment penalty.
Balloon: None.

Earnest Money: $500, post-inspection.
Closing: 21 days from inspection acceptance.

Note secured by a first-position lien on the property.

This is a non-binding letter of intent.

On the principal-only structure: we use this because it preserves margin when rents are tight and lets the buyer reinvest cash flow into the property. If the seller insists on interest, we shift to a higher principal payment instead of an APR; it keeps the accounting clean.

Template 4: Novation / partnership listing

NON-BINDING LETTER OF INTENT - NOVATION AGREEMENT

Structure:
 - Facilitator lists the property on the MLS through a licensed agent.
 - Seller agrees to sell at minimum net of $[seller_net].
 - Any sale price above the minimum net, less commissions and closing costs,
   is paid to Facilitator at closing.
 - Seller continues to own the property until it sells.
 - Facilitator pays listing, photography, and marketing costs.

Term: 90 days from execution, renewable by mutual agreement.
Termination: Seller may terminate if no offer at or above minimum net within 60 days.

This is a non-binding letter of intent.

Why we built ParcelMatch's one-click LOI generator

Hand-writing four templates in Google Docs for every deal is how weekends evaporate. ParcelMatch generates a personalized LOI in one click: select the deal, pick the offer type, enter price, press Generate. The AI drafts the letter using these exact templates, applies the right defaults (EMD post-inspection, no em dashes, no interest on seller finance), and exports as PDF.

The real edge

The LOI does not close the deal. Your offer does. Your follow-up does. Your ability to fund a real PSA within 24 hours of acceptance does. But a bad LOI kills good deals. These four templates are the floor. Start here, and add your own edits after 10 signed offers.

Not legal advice. Have an attorney in your state review your form before relying on it commercially.