To all the analysts/associates/VP's at debt and/or equity real estate investors, what are the most salient aspects of an offering/financing memorandum and which aspects are typically ignored?
To provide some context, I work as an analyst at a top capital markets shop in a major US market and a primary component of the job is to put together fancy OM's to present to prospective investors. However, a lot of the information--especially market and location overview section--in the books we create merely uses selective data/statistics to paint the opportunity in the best possible light. Granted, our job is to sell the opportunity so I get that part. But given that there is a clear conflict of interest when it comes to how we are presenting the data and investment opportunity, it seems that if I were an analyst/associate on the lending or principal side, I would take broker OM's information--especially the market overview sections--with a huge grain of salt and default to third-party data providers for primary market research.
Nevertheless, I also get the sense that the OM is more about making sure the client is happy rather than producing a book that investors are going to heavily rely on--again more from a market perspective--to determine how to underwrite a particular deal.
Therefore, I would just like to get a better sense of what parts of an OM actually matter to a lender or equity investor and which parts don't matter--or at least are not as important as the most important aspects of the OM. @MonkeyWrench I'm particularly interested in your perspective given your experience on both the sell-side and principal side.