The offering memorandum is a marketing document. Some of the numbers in it are wrong — and a few of them are deliberately wrong.
In Part 2 of the Live Deal Analysis Workshop, Mark Kenney works through the questions most investors don't know to ask: how to read occupancy without trusting it, what "free and clear" actually means, and why a single property tax line item can quietly cost you hundreds of thousands of dollars.
In this episode you will learn:
• Why sellers certify the rent roll at closing — and what you can actually do when occupied units turn out to be vacant
• Why 95% occupancy is a signal to raise rents — not a ceiling — and the Fannie/Freddie 90/90 rule for agency financing
• How to evaluate CapEx per door based on where money was spent — not just how much
• What "free and clear" means in a listing, and how bogus mechanic's liens work and how to bond around them
• Why the pro forma property tax figure is almost always wrong — and the $280,000 real-world example that illustrates why it matters
• How the cap rate multiplier turns a small property tax error into a massive valuation mistake
This is Part 2 of a two-part series. Listen to Episode 144 first if you haven't already.
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