3 Things You Need to Know That OMs Never Tell You

Today I've got a fun topic, we're talking about what is not in offering memorandums, but you still must know. So what if you're not familiar with offering memorandum, it's something that a broker, a sales broker puts together to market and sell a property on behalf of a seller.So, the offer, the purpose of the offering memorandum is to have as much detailed information for buyers to review so that they can evaluate the opportunity. So, offering memorandums are great. They're really well done. Broker teams have graphic designers on staff, analysts on staff to really put together the property information, the financial information and the sub market and market information,  qualitative and quantitative.But, there's some key things that are almost always left out,  yet are super important for you as the buyer, when you're evaluating an opportunity. So, what are they? Number one, the biggest one by far and the easiest one is “PRICING GUIDANCE” or the “WHISPER PRICE”. So, the pricing guidance is rarely in the offering memorandum because they don't want to actually put it out there on paper what the seller or, you know, what the strike price is. And there's a good reason for that, and there's multiple reasons for that. One of the reasons being the, if the price is on paper, it helps the County, the property tax assessors know what value the property is likely to be purchased at. And I actually just recorded a video a couple minutes ago, talking about property tax underwriting and how  the County specifically in Texas markets assesses property taxes. So, this is one way. One reason why brokers don't want to put the pricing guidance. Learn more about LSCRE:www.lscre.com