I’m Here on My Soapbox Yelling: “Hey, Fool—Expenses Are NOT Percentages!”

I’m Here on My Soapbox Yelling: “Hey, Fool—Expenses Are NOT Percentages!”

You know that guy with a megaphone, standing atop of a makeshift platform, preaching at the crowd? You’ve read about that guy. You’ve seen him in the movies. Do you know that guy?

Well, I am that guy—or at least that’s the way I feel. And what I am yelling into that megaphone goes something like this:

Fool, listen to me. Yes, I am talking to you! You cannot underwrite operating expenses on income property as a percentage of revenue. All of those expenses are dollars, not percentages!

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