Updated almost 8 years ago on . Most recent reply
Creating a Pro Forma
When underwriting a potential investment, do you utilize the T12 and based off of it you create the Pro Forma? Or you shouldn't mix them up.
Thank you in advance!
Most Popular Reply
Yes, T12 is important to get the basis. It'll tell you what the historic trends are for the property. Then you model in market rents, economic loss, your estimated expenses, projected rent\expense increase, and reversion cap rate. There is a lot more into it but T12 is good. If you can't get a T12, try to get a T3 and annualized it.