Whether you’ve received a deal from a broker or a potential partner, it’s always a good idea to approach their advertised return metrics with a healthy dose of skepticism, not because they’re bad actors, but because return metrics can be manipulated to make a deal look better than it really is.

Despite the fact that the approval criteria are remarkably similar, retail banks and lenders are frustratingly inconsistent with their multifamily loan approval decisions. One bank may look at a deal and want nothing to do with it, while another may be happy to lend the money. Naturally, this begs the question, why?