A Comparative Market Analysis (or CMA) is a commonly-used real estate report regularly created by real estate professionals for the purpose of establishing the market value of property based upon the sales activity of comparable properties in the general area.… Continue Reading
A proforma income statement is a report investors and analysts who are engaged in real estate investing commonly use for the purpose of forecasting the cash flows generated by a rental property. The concept is simple. By projecting out over… Continue Reading
A Proforma Income Statement (or proforma) is a proven way for real estate investors to evaluate the future cash flow performance of investment properties. Better than an APOD (which merely shows a property’s cash flow for the first year), proforma… Continue Reading
The success or failure of a real estate investment ultimately depends on the property’s ability to produce revenue. Therefore real estate investors are always interested in making cash flow projections on any investment property they are evaluating as a potential… Continue Reading
An income-and-expense statement for real estate commonly used by investors as a guide to evaluate rental property performance is the annual property operating data, or APOD. In this article, we’ll look at the APOD and consider what it may reveal… Continue Reading
There’s an ongoing debate amongst analysts and real estate investing software developers regarding proforma income statement projections. Whereas some would argue that proformas should provide twenty-year financial projections, others claim that ten-year projections are sufficient – if not better because… Continue Reading