Hellow guys, Welcome to my website, and you are watching How to Build a Real Estate Pro forma + FREE Download. and this vIdeo is uploaded by Real Estate Finance Academy | Trevor Calton at 2020-12-14T11:49:48-08:00. We are pramote this video only for entertainment and educational perpose only. So, I hop you like our website.
| Name | How to Build a Real Estate Pro forma + FREE Download |
| Video Uploader | Video From Real Estate Finance Academy | Trevor Calton |
| Upload Date | This Video Uploaded At 14-12-2020 14:49:48 |
| Video Discription | Get a FREE Multifamily Pro Forma Template: https://www.realestatefinanceacademy.com/pro-forma Learn COMMERCIAL REAL ESTATE INVESTMENTS at https://realestatefinanceacademy.com/ For COMMERCIAL LOANS, visit https://www.evergreen.llc --- The term “pro forma” is a latin term that means ‘for the sake of form’ or ‘as a matter of form’, and it’s essentially a combined, simplified Income Statement and Cash Flow Statement for a property. Although every pro forma can be a little bit different, its purpose is to put the information into a consistent format that is generally accepted throughout the industry. There is no single standard format for creating a pro forma, other than outlining the various income and expenses. Different real estate firms and investors may use slightly different terminology, especially in different parts of the country, so it’s important to understand what each of the different concepts represents and how they are analyzed. Pro forma may look very different depending on if they are compiled by a buyer or seller. Sellers typically want to get top dollar for the property when they are marketing it for sale, so they are usually going to represent the property’s performance when it is operating at its best. Buyers are typically going to project what they think is most likely to happen in the future, and may make adjustments to account for various risks or market conditions they think may need to be accounted for. If you are on the buy-side of a transaction and looking at a seller's pro forma, it’s critically important that you do your due diligence and verify all the information provided to you and use your own pro forma for your analysis. Either way, the amount of information that each investor or real estate professional is going to want to collect and analyze in their pro forma is going to be different depending on each person’s unique role or circumstance. So, in a nutshell, a pro forma is simply a tool for you to organize your information and conduct your analysis. Be sure to do your due diligence, make reasonable assumptions, and do your best to evaluate the risks of each individual deal. I make a distinction between an Operating Pro forma and an Investment pro forma. An Operating pro forma is what you would typically see advertised by a seller or a listing agent. This outlines the basic operating revenue and expenses of a property without regard to non-recurring items such as capital expenditures or below-the-line items such as interest payments on debt financing and non-cash tax items such as depreciation & amortization. Typically, the bottom line on an Operating Pro forma is the Net Operating Income. An Investment pro forma or Financial pro forma is typically what would be used by an investor looking to acquire a property, and it takes all of the information contained in the operating pro forma, and goes even further to account for capital expenditures, outside financing such as bank debt, and sometimes even non-cash items like depreciation and amortization. Typically the bottom line on an investment pro forma is either the net cash flow after Debt Service or the after-tax income to the investor. CRE loans investing in real estate investment properties and commercial real estate commercial real estate lending commercial real estate loan SBA commercial real estate loan commercial real estate financing commercial property loan commercial building loan real estate mentor best commercial real estate loans commercial property lending #commercialrealestatecoaching #commercialrealestateinvesting #TrevorCalton #EvergreenLLC #financing #loans #lending #realestateinvesting #realestate #realestatefinance #investing #commercialrealestatetraining #commercialloan #commercialloans #apartmentloan #multifamilyloan #apartmentinvesting #multifamilyinvesting #realestateproforma #proforma #stepbystep #stepbysteptutorial #diagram #example #download #freedownload #howto |
| Category | Education |
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