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Please note. Real estate isn't a kid playground. People are out to get you. Experienced people get fewcked every day. 100% sure it happened to me several times and I didn't even notice.
Today heard of a big insti investor that got their IRR absolutely nuked on a large deal because one document in the dataroom was a fake.
You don't read these stories in the news because it's very bad publicity.
You don't read these stories in the news because it's very bad publicity.
Several years ago a big investor used his influence at a top french bank to stop my boss from getting a big refi loan. That would make him less liquid at a time where they were both competing on the same deal. (Story slightly edited)
You've heard of the PE funds locking in people in due diligence and renegotiating terms after. In RE this is the rule not the exception.
And there's the classic "intermediary", "expert", or "advisor" who will come to you and say you absolutely need X, y and Z and they only can provide it for a "small" fee. Or the GC who colludes with subcontractors to inflate bills and get a kickback.
Etc etc
Etc etc
Thanks to the low (no) barriers to entry and technical knowledge required, RE lets in all sorts of dodgy people, from the outright scum to the less noticeable but just as dangerous "it's ok to take a little shortcut with the law" kind of guy.
Be careful. Have good lawyers/advisors, only partner with people you absolutely trust, never depend on the kindness of strangers, and most of all have a margin of safety.
