Can anyone add to this? Not specific to product type -so anything goes- but Industrial would be helpful.
[{"id": "eoit14u", "text": "Broker underwriting is a joke and is intended to maximize the forward NOI without making completely outlandish assumptions. That's how you get to the strike price.\n\nDebt underwriting is intended to determine risk and assess the true debt constant of the deal. It's far more reasonable, stress tested, and the lender will often ask you for backup for things like your tax, insurance, and opex estimates.", "replies": [{"id": "eoius2v", "text": "Pretty much this. You are maximizing assumptions on the broker side to get the highest price. You are also looking at a bigger picture on the debt &amp; equity side", "replies": [], "depth": 2}, {"id": "eoj7ff0", "text": "A joke as in how easy it is or a joke as in how useless it is? From my understanding at the firm I am at, they send their Argus model to the buyer and the buyer runs with it from their. Would you also consider a buyers underwriting to be a joke?", "replies": [{"id": "eoj8tjn", "text": "Its a joke with respect to how useless it is in order to get to a valuation. My modeled NOI was consistently 5-10% lower than the broker's. The broker is trying to hit the strike price, they usually get kickers over the median or over the strike. No buyer ever takes the broker NOI at face value.", "replies": [{"id": "eojnmsx", "text": "Got it, thank you for your input", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]