Friday, October 14, 2011

The Appraisal Institute has published my new book

Soft cover, 122 pages

ISBN: 978-1-935328-22-3

Stock Number:0751M
Fraud Prevention for Commercial Real Estate Valuation
Vernon Martin, CFE
Appraisal Institute
Price: $45.00
Member Price: $35.00
Plus shipping and handling

Direct link to Appraisal Institute book ordering web site:

This is the Institute's description of the book:

"Mortgage and investment fraud are at an all-time high and there are serious consequences for appraisers who become involved in suspicious transactions. This book describes common methods of deception used in fraudulent schemes involving commercial properties and land. It presents various situations and conflicts of interest that have the potential to exploit the appraisal process for dishonest purposes.

Appraisers who can detect fraud can protect themselves from relying on inaccurate information that could compromise the valuation analysis. By thinking critically and challenging assumptions, commercial appraisers can keep out of trouble, whether it is trouble for themselves or for others who rely on their work.

Order now and arm yourself against real estate fraud!

A note to my most faithful readers:

My previous book, "Lessons from Losses in Commercial Real Estate", is being retired due to my new venture with the Appraisal Institute. Although the overlap between the two books is small, the Appraisal Institute does not want me to compete with them with another book, and that is fair.


Anonymous said...

Great blog. Are there any particularly levered / troubled Chinese developers investors should look at as short ideas? I know you’ve mentioned PCRT in the past…

Vern said...

PCRT and Hui Xian have already seen their stock prices decline significantly since their IPOs. The sole asset of Hui Xian is Beijing Oriental Plaza, which is still a trophy property and should retain its value.

PCRT probably has further to fall, considering that most of its assets are not completed yet and may have been misrepresented to begin with, but I doubt if there are shares available to short sell this soon after the IPO.

I don't short sell the stocks I discuss, unlike Muddy Waters and Citron Research, because I don't want to be perceived as biased or making money by spreading false rumors. I'm not criticizing MW or Citron, though, as they've done some good research in many cases.

I am currently short in COGO, a Chinese internet stock that got listed on Nasdaq by way of a "reverse takeover", a favorite strategy of dodgy Chinese small cap companies that practice accounting fraud. It fell more than 20% today alone after reporting record revenues and earnings.

One risk of short selling Chinese stocks is that some of the companies might have some ownership or ties to the Chinese government.
For instance, such former "policy" banks as Agricultural Bank of China, which financed the New South China Mall, may seem to have a lot of unpublicized problem real estate loans, but the Chinese government is not going to let these banks, or their investments in them, fail.