How do you reissue an OM
A tenant vacated and we are going to reissue the OM. But in doing so I caught an error in the book that resulted in an approximate $40,000 inflation of the NOI. Essentially, the in place NOI is now $40,000 LESS than what was previously published due to my error.  It changes the cap on the asking price from a 8.5%to 8%. We have disclaimers all over the book but how do we go about reissuing to buyers? Do we broadcast that we fixed the mistake? Or wait for them to ask? What is the best way to respond if they do ask?
[{"id": "fdme8io", "text": "How many people have you sent out the brochure to with the error? \n\nI would just update for any future people, and shoot a quick email to who you sent it that there was a typo and the cap rate is actually 8.5% and leave it at that. If they are serious buyers they will inquire further on the error and it shouldnt really effect too much.", "replies": [{"id": "fdmedo1", "text": "36 people total, maybe 10 have serious interest.  Not a lot of sophisticated institutional buyers. Cap rate went down to 8% with new NOI.", "replies": [{"id": "fdmeilx", "text": "Say you just got an update and send the updated rent roll.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fdmgvn0", "text": "Please see the updated OM that reflects updates since our prior marketing effort. Please use all the associated materials when considering your offer.", "replies": [], "depth": 1}, {"id": "fdmh59a", "text": "It went from an 8.5 or to an 8.5? Is just reach out and explain there was an error. Should be a pleasant surprise.", "replies": [{"id": "fdmhj33", "text": "Edited my post. Should say the NOI went down. Yes, at the income we reported the cap rate on the asking price was 8.5%.  Now, the cap rate went down to 8% with $40k reduction in NOI", "replies": [{"id": "fdn2jah", "text": "If it were me I'd reach out to all 45 buyers and explain the goof. Hopefully one or more will still have interest. If not I'd take it down for a couple weeks and let it cool off then hit the marketing hard again. Does the most NOI create any additional value add?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fdol32j", "text": "Please see updated OM. \n\nIf you really are worried you can add a few pages or make some stylistic changes. Honestly any serious buyer shouldn\u2019t be basing an investment decision purely off an OM anyway they should be using it as a starting point. \n\nIf someone asks you specifically what changed I would just explain there was an error in the previous OM that overstated NOI. Most buyers should be relieved a broker is proactively disclosing mistakes that inflate value and not waiting for someone to point it out.", "replies": [{"id": "fdoldvw", "text": "I would agree with you on the investors feeling relived. However, I am more worried about the purchase price falling along with the NOI. Good thing the seller set the purchase price without regard to what it will trade on a cap rate basis. \n\nThanks for your response.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fdpgnx6", "text": "Don't worry they will offer 30% under asking whether you republish it or not XD", "replies": [], "depth": 1}]