All Forum Posts by: Jason Ross

Echoing Tom Lafferty , CRE brokers get paid for closing deals. Even for the most honest and scrupulous of them, it is their incentive to paint the rosiest possible picture, whether in a Loopnet listing or OM. I recently had a broker send me materials on a property that were at 50% occupancy because the need for major capex made half of the units unlivable. Still, they priced the property based on proformas of 95% occupancy, rather than demonstrated cash flow. When I told him my much lower assessment of the property's value, he offered to find me a lender who would finance based on the wildly inflated sales price. You are right to be very skeptical.