Foundations of Real Estate
Here we clarify concepts from the course, discuss interviewing preparation, and more.
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Common Mistakes in Pro Forma Expense Projections
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Common Mistakes in Pro Forma Expense Projections
What’s the biggest mistake people make when projecting operating expenses in a pro forma?
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1 Reply
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Probably forgetting to account for a real estate tax re-assessment at the point of sale. The outsized increase in real estate taxes upon sale reduces the next buyer’s NOI and thus impacts their offer price (your gross sale proceeds) for the sale of the property.
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