Letters of Intent (LOI's) - how to structure your offers for 1000's of multi-family units with Andrea Garcia!
How to Structure Letters of Intent (LOIs) for Thousands of Multifamily Units with Andrea Garcia
Why This Episode Matters for Affordable Housing Investors
For new and seasoned investors alike, one of the biggest challenges in real estate is figuring out how to make an offer that sellers take seriously. In affordable multifamily housing, where properties can span hundreds or even thousands of units, the way you structure a Letter of Intent (LOI) can mean the difference between securing a deal and being ignored.
In this episode of the Affordable Housing & Real Estate Investing Podcast, host Kent Fai He sits down with Andrea Garcia, an affordable housing investor and general partner in over 1,200 units, to break down exactly how she crafts LOIs to win large-scale deals. Andrea has mastered the art of presenting herself as a professional buyer—even when starting with limited experience—and her strategies give everyday investors the tools to compete at the highest level.
Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments.
What is a Letter of Intent and Why is it Important in Affordable Housing?
A Letter of Intent (LOI) is a non-binding document that outlines the basic terms of a deal before drafting a full purchase and sale agreement. For affordable housing investors, it serves several purposes:
Shows serious interest. Brokers and sellers receive dozens of calls, but an LOI signals you’re ready to negotiate.
Outlines deal terms. Price, due diligence, contingencies, and closing timelines are established upfront.
Positions you as credible. Even without decades of experience, a professional LOI shows you know how to transact.
Andrea explains that a well-written LOI is not just paperwork. It’s your chance to tell a story—why you want the deal, why you can close, and how your track record (or your team’s track record) supports your ability to perform.
How Do You Structure an LOI for Large Multifamily Deals?
Andrea breaks down the key elements she includes in every LOI:
Purchase Price and Terms – Be clear about how much you’re offering and whether it’s all cash, financed, or structured with creative capital.
Due Diligence Period – Typically 30 days, though this can be negotiated based on the property size and complexity.
Closing Timeline – Standard is 30 to 45 days after due diligence, but affordable housing deals often require more flexibility.
Earnest Money Deposit – A deposit that shows commitment, often structured in two phases: refundable during due diligence, then non-refundable.
Contingencies – Financing, inspections, or third-party reports (like environmental and appraisal).
Team and Track Record – If you’re new, highlight your property manager, lender, or partners who bring credibility.
Her advice is clear: don’t overcomplicate the LOI. Keep it professional, concise, and easy for the broker to read.
What Do Brokers Look for in a Strong LOI?
From Andrea’s experience, brokers are looking for certainty. They want buyers who can close, minimize surprises, and move quickly. She suggests tailoring your LOI to address broker concerns directly:
Be transparent about financing. If you’re using a bridge loan, explain your lender relationship.
Show you’ve done homework. Reference actual rent rolls or property conditions you’ve reviewed.
Keep the tone professional. Even if you’re an aspiring investor, write like someone who understands the process.
One powerful move Andrea recommends: always include your resume or team bio with the LOI. Even if your resume is short, attaching it shows confidence and builds trust.
How Do New Investors Compete with Experienced Buyers?
One of the most common questions from Andrea’s students is, “How do I make offers when I don’t have a track record?” Her answer is simple: borrow credibility from your team.
Leverage your property manager’s unit count.
Highlight your lender’s experience with affordable housing.
Reference mentors or general partners you’re learning from.
Andrea stresses that affordable housing is a team sport. Your LOI doesn’t have to say “I” closed thousands of units—it can say “my team collectively manages and operates over 1,000 doors.” That positioning instantly changes how brokers view you.
Key Insights from Andrea Garcia
LOIs are your credibility tool. They show you’re serious, even before contracts are drafted.
Simple is powerful. Brokers prefer short, clear LOIs over complicated legal documents.
Borrow experience until you have your own. Use your team’s background to build credibility.
Timeframes matter. Be specific about due diligence and closing to show professionalism.
Affordable housing deals reward persistence. Andrea didn’t start with thousands of units, but she grew by consistently making offers.
Best Quotes from Andrea Garcia
“A Letter of Intent is your way of saying: I’m not just kicking tires, I’m ready to play ball.”
“Don’t be afraid to leverage your team. You don’t need to be the expert on day one, but you do need to show you have experts around you.”
“Brokers want certainty. If you can show them you’re prepared to close, your offer will get pushed to the top of the stack.”
“Keep your LOI simple, clean, and professional. No broker wants to read a ten-page letter.”
Common Questions This Episode Answers
What is the difference between an LOI and a Purchase and Sale Agreement?
An LOI is non-binding and outlines basic terms, while a Purchase and Sale Agreement is legally binding and much more detailed.
How long should due diligence be in an LOI?
Most multifamily LOIs propose 30 days, but larger or affordable housing properties may need longer.
Do I need a track record to submit an LOI?
No. You can highlight your team’s experience, property manager’s portfolio, or lender’s expertise to strengthen credibility.
What makes an LOI stand out to brokers?
Clarity, professionalism, and demonstrated ability to close. Including a resume or team bio helps.
Can an LOI be legally enforced?
Generally no—it’s considered non-binding, but it builds the foundation for a binding contract.
Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. His mission is to equip everyday investors, developers, and advocates with proven strategies that deliver both profit and impact.
DM me @kentfaiheon IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.
