How do you know if a project that you locate, or that is presented to you is a money maker? Simple, you fill out this ProForma that we have used for over 30 years. It covers all of the costs associated with your project and tells you precisely what the net profit should be on any deal. We use this up front to determine projects viability. We also use it to shop for the best funding sources and partners. Of course, anyone that has an interest in your project will want to see the numbers, and this document allows you to professionally deliver the projects profit potential. This document is to be used up front, when looking at a deal and should be updated as the project moves forward, and at the end, to see your net profit.
We always use 3 exit prices, which we call “blow out”, “probable”, and “possible”.
Blow Out – This is the exit price in which you feel would sell the property immediately.
Probable – This is the exit price you feel is reasonable, and the most likely sales price
Possible – This is the price that you may be able to attain, especially in an increasing market.
In order for this document to work well, you need to have excel. However, even if you don’t have excel, you can manually fill in the numbers the old fashioned way, or, put it on a word document.
