Operating expense ratio

Operating expense ratio — total operating expenses (excluding the loan) as a share of gross income. The reality check on optimistic pro-formas: dues-heavy Metro Manila condos genuinely run 35–45% before any misfortune, which is why the 50% rule barely flatters them. Tracking your actual ratio against the underwritten one is part of 3.9’s quarterly assumptions audit.

First used in: 3.4 · Underwriting: the Gallinelli math