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The Real Estate Pro Forma: What Every Investor Should Know

December 09, 2019 / JEFF ROHDE

It’s critical for investors to make their pro forma as accurate as possible.  That’s because the NOI (net operating income) and cash flow projections from a real estate pro forma are used in other investment property calculations such as cap rate, cash-on-cash return, and ROI (return on investment). A pro forma with an inaccurate NOI and cash flow can wreak havoc on the other financial metrics and lead to a poor investment decision.