328. Bribery and Corruption in Real Estate | Office Hours

Key Takeaways:

Commercial Real Estate Corruption:

Bribery and corruption are prevalent in the industry

Common issues include:

Brokers taking backdoor payments

Sharing confidential information

Bribing politicians for zoning approvals

Contractors inflating project costs

Investment Advice:

Always get agreements in writing

Trust is crucial when selecting a broker

Understand market dynamics before analyzing deals

Get multiple bids for projects

Be cautious of potential conflicts of interest

Industry Insights:

AI is increasingly impacting commercial real estate

Spreadsheet analysis is less important than understanding market dynamics

Ethical practices are critical in deal-making

Recommended Practices:

Always counter offers

Verify contractor work and costs

Build long-term relationships over short-term gains

Be transparent and maintain professional integrity