Offering Memorandum Fee
I’m a current analyst that is looking into doing some freelance work and wanted to ask here what you guys think. How much would you guys charge to create an OM for someone? Including some area overview, demographics, market, and financial analysis?
[{"id": "gcluvw6", "text": "Depends on the quality of package and value of property.  Would it be for a $3M NNN deal or a $30M industrial building?  Creating in indesign or PowerPoint?  Keep in mind you\u2019d have to be a serious discount to competing brokerage services since you don\u2019t have their credibility/full value proposition. How would you find the business?  but to answer your question: if confident in your quality of work then I\u2019d imagine $8k minimum is reasonable. Photography itself can cost $2.5k when putting a nice book together.", "replies": [{"id": "gcm3dum", "text": "Although I don't necessarily disagree, I can guarantee that an individual looking to hire a freelancer to build an OM is never going to shell out $8k. Brokerage firms will build an OM for free just to get the listing.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gcm7lem", "text": "A bit depends on the scope - are you building the entire book (graphics, layout, etc) or the items you list that will be entered into a template they now use? If you are building the financial analysis it will also depend on the asset type where you might consider charging based on information supplied (rent roll, operating statement, etc) and then some factor for size - # of leases, doors, units, etc. Output from market analysis tools, especially if the broker doesn't have them, may be required.", "replies": [], "depth": 1}, {"id": "gcmhhh6", "text": "Charge per hour.  The amount of work can vary significantly depending on how organized the client is.  You don't want to quote a fixed price and then have some guy mail you handwritten CAM recs and leases with 15 amendments a piece.", "replies": [], "depth": 1}, {"id": "gcmz96c", "text": "We paid our designer 1k for our OM template and 100 for each plug and play when we have a listing.", "replies": [{"id": "gcogo6g", "text": "How short is your om template?", "replies": [{"id": "gcoh8ya", "text": "Its 20ish pages. My wife referred a designer to us that she went to school with. It's really nice when you can find a talented freelancer. They are out there.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gd425qk", "text": "As the receiver of countless offering memorandums, **please let me clue you into the harsh truth that the area overview, demographics, market analysis, and various filler crap in OMs are never read by lenders**. \n\nWe only review the property details, financial analysis, and budget if you have one. \n\nSorry, but it\u2019s true.", "replies": [], "depth": 1}, {"id": "gd5iihn", "text": "Could you post a redacted sample? That would help a lot : )", "replies": [], "depth": 1}]