Dumb math question
Dumb math question but appreciate any help. If insurance expense for a property decreases by say 5%, shouldn’t NOI increase by the same 5%? Is that not logical? But working on a deal where insurance expense has decreased by 5% but NOI only increases by 1%. Why would that be the case? Thank you!
Insurance expense is only a single line item out of all your operating expenses....
If insurance is $100K and decreases by 5%, it's only $95K
NOI can be $500K pre insurance reduction, if it increases the $5K you saved on insurance, that's only a 1% increase
Lol
Only if Insurance was the sole line item in OE. Otherwise, a single shift like that is not going to have an even near equivalent shifting of your NOI.
OP is the pride of Rise48's incoming analyst class.
Bruh I can't, I'm rolling on the floor with this response.....They can make a video of Sizers
Holy shit
I was about to give a detailed answer and realized there’s very little hope here. Good luck.
I was going to give you some encouragement despite all the negative comments, but then your profile said "Associate 3", so I wrote this instead.
It is good that you asked this question on WSO, and didn't ask your VP.
NOI is a much larger number so the nominal amt of insurance savings would equate to a lower % increase in NOI
Where is the US is insurance decreasing by 5%
Hahahhaa
This is the real question right here. Is Rise 48 still aggressively underwriting these days?
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