Pro Forma/Profit and Loss Statement

[La'Terrius Campbell]

What’s the difference in a Pro Forma and a Profit and Loss Statement?

[Clayton Silva]

Hey La'Terrius, typically a pro forma is an expectation of market rent (what the seller or the listing broker think the property could generate).  It's like a forward/future looking projection while a profit and loss will encompass what the property actually generated in the past 12 months or YTD.  The P+L is a snapshot of the recent past performance and is the actual performance of the property.  Be careful though, because most P+L's are generated by the seller and could be accurate or complete misrepresentations, so I would want a P+L that was blessed off on/signed by their CPA depending on the size of the deal.