Proforma Construction is a licensed Design/Build commercial contractor Pleasanton CA with over 30 years' experience in construction services.
What do you mean by pro forma?
What Is Pro Forma? Pro forma means “for the sake of form” or “as a matter of form." When it appears in financial statements, it indicates that a method of calculating financial results using certain projections or presumptions has been used.
What is a pro forma for property development?
A real estate pro forma report details a property's projected net operating income (NOI) and cash flow projections using its current and potential rental income and operating expenses.
What is a pro forma projection in real estate?
It's important to note that a real estate pro forma is a financial projection of rental income and expenses, not an actual report. A pro forma highlights what a rental property could, should, or would gross in revenue. As such, a pro forma is a tool used to evaluate the risks or benefits of a potential rental property.
What is an example of a pro forma?
An example of a pro forma would be to make a prediction of a teenagers allowance for the year 2022, based on the actual amount of allowance received for the year 2021. Then, adjust for any more household chores that will be added to possibly increase the yearly allowance total for 2022.
What is a pro forma in project management?
A pro forma is a financial projection that shows the expected income, expenses, and cash flow of a real estate development project. It is a crucial tool for evaluating the feasibility, profitability, and risk of a project, as well as for securing financing, partners, and approvals.