A $1.8M valuation looked solidāuntil we saw the seller was charging their business just $1,000/month for a property worth $4,500/month in rent.
ā ļø That $3,500/month gap = $42K/year = ~$250K in overstated value
We adjusted the rent. Value dropped. The loan structure changedāand the deal stayed alive.
š Always ask: Is the rent realistic post-sale?
