FIRPTA Real Estate
April 25, 2025
Home inspection basics
May 3, 2025Offering Memorandum is what the Seller has prepared for you to market their property, it covers all of those necessary info.
The Investment Committee Memo is often created earlier in the process and focuses on helping internal stakeholders make investment decisions. It's more analytical and focused on the investment thesis and risk assessment.
I would always want to have an Executive Summary and Risk Assessment section on my ICM!
|
Feature |
Investment Committee Memorandum |
Offering Memorandum |
|
Purpose |
Internal decision-making document |
External marketing and legal document |
|
Audience |
Investment committee members, internal stakeholders |
Potential investors, external parties |
|
Executive Summary |
✓ |
X |
|
Timing |
Earlier in the investment process |
X |
|
Legal Status |
Not a legal requirement |
Legal marketing document |
|
Level of Detail |
Focused, analytical, investor centric |
Comprehensive, extensive, marketing centric |
|
Property Description |
✓ |
✓ (More detailed) |
|
Financial Analysis |
✓ (Supporting model) |
✓ |
|
Investment Thesis |
✓ |
X |
|
Risk Assessment |
✓ (More extensive) |
✓ (Competition, Demographics etc) |
|
Market Analysis |
✓ (More detailed and risk+growth perspective) |
✓ |
|
Legal Disclosures |
Limited as internal |
✓ (Extensive) |
|
Securities Information |
Minimal |
✓ (Detailed and as per regulations) |
|
Regulatory Compliance |
Not a focus beyond risks (Important in later steps) |
✓ |
|
Return Projections |
✓ |
✓ |
|
Exit Strategy |
✓ |
✓ |
|
Sponsor Background |
Brief |
✓ (Marketing perspective) |
|
Tax Implications |
May be included depending on Investor requirements |
X |
|
Length |
Typically shorter |
Typically longer |
