The Cash-Offer LOI: Structure and the Numbers
Updated June 17, 2026
A cash-offer LOI is a letter of intent to buy with no financing contingency, trading a lower price for speed and certainty of close. The structure is simple: a clear cash price (often 70-85% of ARV minus repairs for investor deals, higher for lighter ones), no financing or appraisal contingency, a fast close, and proof of funds. The cash discount is the pitch — certainty is what you're selling the seller.
The cash-offer LOI is the workhorse of investor acquisition because it sells the one thing a financed buyer can't: certainty. No loan to fall through, no appraisal to miss, no 45-day wait. For a seller who's been burned by a deal collapsing at the finance stage, or an agent who just wants a clean close, that certainty is worth a real discount off the asking price.
But the cash offer only works if the structure makes the trade obvious — price for speed and certainty — and if the number is defensible. A cash offer that reads like a random lowball gets deleted; the same number framed as the cost of a guaranteed, fast, all-cash close gets countered. Here's how to structure it and where to set the number.
The structure of a cash-offer LOI
A cash-offer LOI has five load-bearing parts. The cash price, stated up top. No financing contingency and no appraisal contingency — this is the whole point, so make it explicit. A fast closing timeline (often 7-21 days), because speed is half of what you're selling. Earnest money that signals you're serious. And proof of funds, because a cash claim with nothing behind it is worth nothing to an agent who's seen a hundred tire-kickers.
The framing is as important as the terms. The cash offer isn't a lowball you're apologizing for — it's a trade you're proposing: a lower price in exchange for certainty and speed the seller can't get from a financed buyer. State that trade in one line and the below-ask number stops reading as an insult and starts reading as a position worth countering.
Where to set the number
The cash price depends on the deal type. For a fix-and-flip or distressed acquisition, the classic formula is a percentage of after-repair value minus the repair cost — commonly around 70% of ARV minus repairs, leaving room for profit and holding costs. For a lighter, more turnkey property you might go higher, into the 80-90% of value range, because there's less risk and less work to price in.
The discount off asking is the cost of certainty, and it should be defensible against the property's actual condition and the comps — not a flat percentage slapped on every listing. An offer comped against the real listing engages far more than a blanket lowball, because the agent can see the number reflects the property rather than a spray-and-pray. Accuracy is what lets the cash discount read as reasonable instead of offensive.
| Deal type | Typical cash offer | What it prices in | Close timeline |
|---|---|---|---|
| Heavy distressed / flip | ~70% ARV minus repairs | Repairs, holding, profit margin | 7-14 days |
| Light rehab / value-add | 75-85% of value | Modest repairs, smaller margin | 10-21 days |
| Turnkey rental | 85-90% of value | Minimal work, lower risk | 14-21 days |
| Wholesale assignment | 70% ARV minus repairs + fee | Buyer margin + your spread | 14-30 days |
Cash-offer pricing by deal type (illustrative)
Running cash offers at scale
The advantage of the cash-offer LOI in a blasting context is that the structure is formulaic, which means it automates cleanly. Define the buy-box formula once — percentage of ARV minus repairs, or percentage of value by property type — and every offer comes out at a defensible number tied to the real listing. The agent gets a property-specific cash offer; you never priced it by hand.
BILT CRM comps each property against the listing and your buy box, generates the cash-offer LOI at that number, sends it to the agent, and follows up on the reply — so the cash discount is consistent and defensible across hundreds of offers. The cash offer is the highest-volume LOI structure precisely because certainty is universally attractive and the pricing is formulaic enough to run at scale without ever sending a number you wouldn't honor.
Frequently asked
How do you structure a cash-offer LOI?
Five parts: a clear cash price up top, no financing contingency and no appraisal contingency (the whole point), a fast close of 7-21 days, earnest money that signals you're serious, and proof of funds. Frame the below-ask price in one line as the cost of certainty and speed, not as an apology.
What percentage of value should a cash offer be?
It depends on the deal. Heavy distressed or flip deals commonly use ~70% of ARV minus repair costs to leave room for margin and holding. Lighter, more turnkey properties can go higher, into the 80-90% range, because there's less risk and work to price in. Comp it against the real listing, not a flat percentage.
Why would a seller accept a lower cash offer?
Certainty and speed. A cash offer has no financing to fall through, no appraisal to miss, and can close in days instead of weeks. For a seller who's had a deal collapse at the finance stage, or who just wants it done, that guaranteed, fast close is worth a real discount off asking — which is exactly the trade you're proposing.
Can you send cash-offer LOIs at scale?
Yes — the cash offer is the most scalable LOI structure because the pricing is formulaic. Define your buy-box formula once (percentage of ARV minus repairs, or percentage of value by type) and a system can comp each property and generate a defensible cash offer automatically, so you send hundreds without pricing any by hand.
The takeaway
The cash-offer LOI sells certainty: no financing contingency, no appraisal, a fast close, backed by proof of funds — and a price that trades a discount for that guarantee. Set the number against the real property (around 70% of ARV minus repairs for distressed deals, higher for turnkey) so the discount reads as defensible, not insulting. Because the pricing is formulaic, it's the most scalable LOI structure — define the buy box once and tools like BILT CRM generate and follow up on every offer automatically.