Is the Seller Being Truthful?

[Jerry Ipsen, CFE, MBA]

We’d all like to believe that everyone involved in a commercial real estate is being truthful. Of course, their shoes are shined, they’ve got a nice watch, and chances are, they’re driving an expensive car. Granted, it’s probably leased.

In reality, not just stupidity but scumbags too, are indifferent to color, creed and religion. Every group and I mean every group has its sordid bunch. They’ll straight out lie to your face and smile while doing it!

However, you’re careful and you have concern for your client’s well-being. So, you go the extra mile when conducting due diligence. You have the building inspected. From the roof top to the basement, and every floor in between.

How about the financials? Are they accurate? You haven’t met the seller or broker before and don’t really know much about them. Do you think, just maybe, you might want to conduct further due diligence by examining the financial statements? Haven’t heard of that or not sure? Well, the book, “Financial Due Diligence for Commercial Real Estate: Proven Methods to Detect and Prevent Fraud” is available on Amazon and will teach you what you need to know when examining seller/broker provided financial statements.