"How do you project expenses?"
How do you guys decide on what the expense numbers actually are when given an OM? Naturally, brokers tend to be "optimistic" so how would you answer that question in an interview on the acquisitions side?
If there are comps that the firm owns, you could underwrite expense lines on a per-unit basis generally or just take what the broker gives you and add a margin of error like 10-15%?
Let me know your thoughts guys