Understanding Expense Ratios in C...
Understanding Expense Ratios in Commercial Real Estate
Ironclad Underwriting Podcast by Jason L Williams PHD
E66
Sep 16, 2026
29:15
Episode notes

In this episode of the Ironclad Underwriting Podcast, Jason Williams and Frank Patalano take a deep dive into expense ratios and explain why understanding operating expenses is essential when evaluating a commercial real estate investment. They discuss how property age, class, location, and management can impact expenses and why investors should avoid relying on blanket assumptions when underwriting a deal. The conversation also explores payroll, reserves, utilities, property management, controllable and uncontrollable expenses, and the importance of carefully reviewing a property’s financials.

Topics Covered

  • Understanding what an expense ratio is and how it is calculated
  • Why mortgage payments are not considered operating expenses
  • How property age and vintage affect operating expenses
  • The ... 
Keywords
Commercial Real Estate
underwriting
Real estate investing
Multifamily syndications
Passive income
Wealth
Risk mitigation
Deal analysis