#1 Problem is Bad Underwriting by Incompetent Brokers!

Now that some more properties are coming onto the market now, I’m seeing more with absolutely terrible underwriting! Either these brokers don’t have a clue as to how to underwrite a property, are lazy, incompetent, or all of the above!
Recently I saw a property come on the market with an 80% LTV and 23% expense ratio!
In these Covid times, lenders are being very conservative and underwriting at 75% LTV at best, not 80%!
And 23% expense ratio is beyond laughable! Did the broker not check any of the sold comps in the market? If they would’ve, they would’ve found that there has never been a property that has sold in that market with a 23% expense ratio EVER!
These kind of mistake, if I can call them that, do a disservice to the seller as well as the buyer because all it does is cause the deal to be renegotiated during due diligence because it can’t get financed or appraised at these levels!
If you’re a seller or a buyer, don’t accept this incompetence! You don’t need to waste your time and money!