![]() Why is it possible to simplify the financial statements of a property and use just a single schedule rather than a full Income Statement, Balance Sheet, and Cash Flow Statement? Simplification 101: Why the Real Estate Pro-Forma? We’ll discuss the main line items on the real estate pro-forma in this article and give you an Excel template, but let’s start at the beginning with the “why.” While that description is accurate, it’s more useful to think of the pro-forma as a combined and simplified Income Statement and Cash Flow Statement – for a property rather than a company. Many websites and textbooks describe the real estate pro-forma as a “cash flow projection” for a property. ![]() If you want to understand a company, look at its financial statements – and if you want to understand a property, look at its pro-forma.
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