Real Estate Proforma (Fully Explained) 2023

Real Estate Proformas are used by investors seeking to determine if a deal is worth pursuing. Unfortunately, proformas can get confusing for beginners entering into real estate due to the differences that occur across various asset classes, underwrites, companies, etc.

By the end of this 15 minute video, you will understand the major property performance metrics necessary for valuing real estate (NOI and CF), and how to use these metrics to determine property returns (GRM, Cap Rate), loan related returns (Debt Yield, DSCR), as well as investor returns (ROI, ROE, IRR, EM). Not only that, but you will understand exactly why we use each return and at what stage in the proforma it makes sense to do so, taking considerations such as the timing of realized vs unrealized gain into account.

Need more detail? Check out this 5 part series where I breakdown each component of this video even further:
- Part 1: Net Operating Income (NOI): --Coming 1/4/2023--
- Part 2: Before Tax Cash Flow (BTCF): --Coming 1/8/2023--
- Part 3: After Tax Cash Floe (ATCF): --Coming 1/11/2023--
- Part 4: Equity and Annual Returns: --Coming 1/15/2023--
- Part 5: IRR and Equity Multiple: --Coming 1/18/2023--

INSTAGRAM:

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BUSINESS INQUIRES:

[decarlobrown]

Very clear! Any way we can get that spreadsheet?

[hmj]

Great explanation, but a $200, 000 property that rents for over $2k/month? yeah sign me up.

[meilancon]

Love it, it’s different!!! Get rapid results > promo sm!