Cremodel.com helps you design real estate proforma template
The real estate cash flow analysis from rental income is what all investors should evaluate in determining whether to proceed with a commercial real estate investment. This analysis gathers the numbers for the upfront investment costs (e.g. purchase price, construction costs, etc.) and the ongoing income and expenses. In other words, is the income generated from the property adequately reward the investor for his investment.
While some investors rely on a “cap rate”, the cap rate is nothing more than a ballpark screening tool. A successful investor will need to gather the numbers. A real estate proforma template is used by many investors because it tells them the type of information they need to be gathering. The proforma generated will not only be used by the investor in making his investment decision but may also be used to get bank financing and participation from other investors.
Quality real estate software takes the guesswork out of what to include on the proforma. Because it is standardized, it gives the bank and other investors the assurance that you are running a complete analysis and they need not worry about your math or the format of your model. All they need to review is your assumptions and the conclusions.
Not all real estate software is equal and it is important to find one that is flexible enough to handle your needs but simple enough to be able to use without too much of a learning curve. Banks prefer the use of automated software because they then don’t have to review the actual calculations as they would if someone just submitted an Excel spreadsheet.
Processing your request, Please wait....
