Offering memorandum
The document sponsors send to prospective investors describing a syndication deal: the property, the market, the business plan, the financials, and the terms. Legally the marketing document for the offering.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
If you sell a larger building through a broker, the offering memorandum is the marketing package buyers receive. If you invest in a syndicate after your sale, it is the document that describes what you are buying into.
Part 2 of 4
A simple example
Your broker prepares a 30-page offering memorandum on your twelve-unit building: rent roll, T-12, photos, the market, and an asking price.
| What is in it | What a buyer does with it |
|---|---|
| The rent roll and T-12 | Underwrites the income |
| The pro forma | Reads the assumptions with suspicion |
| The asking price | Starts from it, rarely ends there |
The OM is the building's story, told by the seller. Buyers check every number in it.
Part 3 of 4
What people get wrong
That the OM's pro forma is a promise. It is a projection, and the T-12 is the record it is checked against.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
One piece of your sale. Here is where all the pieces live.
In your room, this word explains itself where it appears.
Keighbor keeps your whole home sale in one place and defines every term like this one right where you meet it, in the step you're on. Free to set up, with or without an agent.