Letter of Intent (LOI) for a Master Lease: Step-by-Step (Free Template Inside)

Doc Haller walking through a step-by-step Letter of Intent for a Master Lease with Option to Purchase on a commercial property.

Some of the best commercial deals begin with a simple, professional Letter of Intent (LOI). In this walkthrough, Doc Haller shows you exactly how to draft an LOI for a Master Lease with Option to Purchase—so you can move from “interested” to “in contract” with confidence.

So what makes a Master Lease such a win for the seller? Doc lays it out clearly:

What the LOI Does (in plain English)

An LOI outlines your business terms before the formal Master Lease is drafted. The seller retains legal title; you gain equitable control to operate (manage, collect rents, pay expenses) while paying the seller on agreed terms—then you keep the option to purchase.

Doc’s Two-Step LOI Process

Step 1 — Create the letter skeleton (business-letter format):

Your name/business + address
Seller’s name + address
Date and subject line (e.g., “Letter of Intent – Master Lease with Option to Purchase”)
Opening paragraph: state you’d like to master lease the property (full address + property type) and manage day-to-day operations during the term.

Step 2 — Add the key paragraphs/clauses:

Property & Term: Identify the property clearly; propose a term window (e.g., 2–5 years).
Management Responsibilities: You take over operations (rent collection, routine upkeep, minor repairs).
Payments: You make monthly master-lease payments to the seller; seller uses proceeds to pay existing loan, property taxes, insurance.
Taxes & Insurance: Name real property taxes and note personal property taxes if applicable (furniture/fixtures/park-owned homes).
Property Manager (Optional): You may hire a manager at your own expense.
Option to Purchase: State your purchase option will be formalized in the Master Lease (seller benefits from no sales commission at exercise).
Commission Language: Clarify that a broker’s commission is not owed by the seller at option exercise (align with your local law/practice).
Clean-Up & Finalize: Remove drafting highlights/instructions; ensure clear, concise paragraphs; add a signature block (your business name, title) and an acceptance deadline.

Watch the full video for Doc’s buyer-side benefits and exactly how this becomes a win-win.

Download the LOI Template

Get Doc’s fillable LOI sample (the same layout from the video) inside the Program.

Educational content, not legal advice. Consult a licensed attorney in your state to review any documents before use.

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