Making 100 page OMs doesn’t help sell your product and can be very annoying
I’m not sure how everyone feels about this but today I opened up a package for a 60 unit building in my market that was 58 pages. There is in no way that any existing building needs more than 20 pages and I’m my preference 10 or less. Maybe not everyone feels this way but unless you have some incredibly complex development site or product you don’t need to create short novels to sell a building.
[{"id": "i2sagfx", "text": "Tell my brokers this please haha", "replies": [], "depth": 1}, {"id": "i2sd1ja", "text": "Lol. Please post this OM.", "replies": [], "depth": 1}, {"id": "i2shuhj", "text": "lmao, that's like having a powerpoint slide for every single sentence you have to say in a presentation.", "replies": [], "depth": 1}, {"id": "i2sk2w2", "text": "Typical large brokerage mentality.", "replies": [], "depth": 1}, {"id": "i2sqg5n", "text": "Due diligence packages have just been screenshots of what\u2019s in the OM recently\u2026not kidding. It tells you next to nothing. Nothing accurate, anyway.", "replies": [], "depth": 1}, {"id": "i2ssrq5", "text": "As a lender when I get sale or financing OMs that are extremely long with pretty pictures, I know something is fucked up about it LOL.", "replies": [{"id": "i2syu5q", "text": "What about if it\u2019s a 3 property deal. Does a 60 pager make a little more sense or no?  Honest question.", "replies": [{"id": "i2sz53t", "text": "I\u2019ve done 100+ property deals with ~20 page financing OMs. The details are in the numbers and property tapes.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i2stkdf", "text": "I spent 6 years as a broker and was forced to do exactly this.  Nobody ever read them or cared about the \"story\" and nothing we ever wrote changed how someone viewed a property.  Give the market the facts and relevant information about the property - they will underwrite how they want.", "replies": [], "depth": 1}, {"id": "i2svf17", "text": "So much fluff in OMs, its always better to do the analysis for potential buyers, that\u2019s where the value is in an OM", "replies": [], "depth": 1}, {"id": "i2szuqt", "text": "ON - offering novel\nOSS - offering short story\nO20N - 20 pages of brokerage puffery and market demographics, no relevant property info or pricing.\n\nI agree, 10 pages: cover, disclaimer, summary, building 1&amp;2, lease 1&amp;2, proforma, demographics, fin.", "replies": [], "depth": 1}, {"id": "i2ugakw", "text": "More pages= big \ud83e\udde0", "replies": [], "depth": 1}, {"id": "i2uxel6", "text": "Appraisals are the same way from the nationals.\n\nBrevity is a skill most have difficulty with, but the more irrelevant information you put into an OM or appraisal or really any research document, the more it indicates you don't know what you're doing or are obfuscating the most important facts/conclusions. \n\nThat said, if you're talking about a wind farm, nuclear power plant, natural resources, or something highly specialized, it may very well be necessary. \n\nBut at the moment, I think this is about desperation regarding the inevitable continuing rapid increase in treasury rates.  The already significant increases haven't generated the security sales volume the Fed had hoped, which means they will have to go a lot higher to get the $100 trillion or more of USD outside of the country locked into treasury securities.  Increasingly, it looks like we're going to Volker levels at the peak circa 1982.  \n\nBrokers want to unload their deals before interest rates kill the value directly or via higher investor equity yield rate expectations.  \n\nThings will be rough, but if you're young - buy 30-year TIPS when the rates are 15+.  From 1982 until 2012, those were the best performing investments by a huge margin.  \n\nAfter that there will be either an exchange of treasury debt with IMF/World Bank SDRs or something like Keynes' Bancor, which means Pre-1971 interest rate stability, or another decades long decline in rates.  You can make money on either scenario (obviously way more development transpired Pre-1971 than since - stable interest rates let you focus on fundamental economics rather than pure finance).", "replies": [], "depth": 1}, {"id": "i2v845p", "text": "If you\u2019re liking is only 10 pages, what are the main touch points that you want in the report?", "replies": [{"id": "i2vi8vs", "text": "Basic building/site info, unit mix, T12, and tax breakdowns are essentially all I look for in OMs that I underwrite (multifamily)", "replies": [], "depth": 2}], "depth": 1}, {"id": "i2v8fq4", "text": "I'm really sorry, but I've had way too many clients send me a competitor's 60-page OM saying \"why is your OM half as big for a larger $$$ value listing?!?!\" to fall for this. Yes, it repeated the same picture multiple times. Yes, it showed the same map in road, satellite, and hybrid view. Yes, it was created using the exact same software used to create my OM, so I know I could've created the same. I've also seen buy-side c-suite pick up a clear, concise 10-page OM, flip right past the executive summary, and then ask \"how many units? It would be more professional to put a breakdown of the number and type of units in here.\" The net result is that I'm going to keep whipping up dozens-of-pages OMs that basically repeat the executive summary 4 or 5 times, because the executive approach seems to be \"judge anything less than 20 pages to be beneath me, and expect to find all important information within 2-3 pages of a random spot I pick in the middle of the package.\"\n\nSo, I'm sorry, but as respectfully as possible - this is the CRE equivalent of looking at the McDonald's coffee cup and saying \"why the hell do they put 'caution - HOT' on here?\" It's obvious to you and me, but there are lower denominators out there.", "replies": [{"id": "i2vgkjw", "text": "Just curious, what software is used for something like this? I always thought it was just a ppt template or something?", "replies": [{"id": "i2ywxs7", "text": "Adobe Indesign is what we use.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i2vrd7o", "text": "Every 4th page is a sexy picture of the property with no writing outside of the brokerage\u2019s letter head", "replies": [], "depth": 1}, {"id": "i2w8m57", "text": "You don\u2019t like knowing where every fast food restaurant in a 12 mile radius of the site is?", "replies": [], "depth": 1}, {"id": "i2wnv6e", "text": "As a mortgage broker- yes. \nSend me a T12 and rent roll and we\u2019re a few phone calls away from getting a term sheet.", "replies": [], "depth": 1}, {"id": "i51xusw", "text": "Brokers have to justify their fee!  Even though the Rolodex is the same across the big boys!\n\nOn a 50-100M execution with fees at 50 to 100bps, you better have \u201chella\u201d pages!", "replies": [], "depth": 1}]