I have joined BiggerPockets to share my commitment and expertise with the BiggerPockets community by offering professional guidance and advice in areas including real estate deals and transactions, business development, and project management strategies to improve outcomes, budget management and customer solutions.As someone who has personally experienced, solved problems and developed projects in the areas of real estate development involving engineering, architecture, construction I welcome conversations in these areas as well as those below: Areas of interest include: pro forma development, technical due diligence, strategy and company growth; development, deals and transactions; portfolio development & management; leasing; construction, engineering and architecture in project design and technical operations.Real Estate, Construction and A/E, project manager, Real Estate Investor with more than twenty years of integrating business, engineering , architectural expertise and real estate development, construction management experience in designing, managing and investing in more than $126.5 million of commercial and multi-family properties and over $100 million in private and municipal projects encompassing design/build, structural, electrical, mechanical/civil engineering and architectural services, construction management, real estate investments, due diligence, pro forma development and financing.

Go to "Black's Law" look up "Torts" then ask yourself if you should be leading homeowners to think they have sold their home under your contract.While you're on that site, look up the requirements to form a business contract, do you have the intent and ability  to buy as contracted or is your contract bogus and voidable?

Lifestyles Unlimited is controversial here at BP, but one thing they clearly don't get enough credit for is issuing deal sponsor guidelines that are fair to all parties.You have no track record, and are justifying taking equity based on pro formas that may or may not be realized.  

So I will go over a pro forma provided to me by a broker and see what type of deal it is. 

For example maybe the issue is not that the landlord is keeping rents artificially low but that walking on the living room floor is like walking on a boat and there's significant functional obsolescence throughout the assetLandlords do often keep their rents artificially low, but if you were a lender you would agree that someone throwing good money away is also a little insane and potentially suspect.So these are just a few of the reasons that you and/or your lenders and investors are forced to value your target property on how the property is actually currently performing.On the other hand, as opposed to doing a single valuation you should be doing a full pro forma.

Although the how it works section seems really detailed and kind of opened my mind up to what to ask from sellers so I can obtain actual data vs the Pro Forma Data....

There's not much the lenders can do based on my preliminary estimated numbers so until I have the formal pro-forma data from the feasibility analysis, that will have to go on the back burner.

Pro Forma is latin for "as if"... as in "as if I'll believe those numbers".

When you see someone throw around COC or COCR numbers they are typically year-one pro forma calculations. 

If you are looking to form a business entity there are the fees associated with that.