If you going to create a pro forma for the subject and cap out the income, I would base the leagal and professional/ leasing on the history of the property.

Don't allow financing or a finance contingency (it can be a good indication they are selling above market value) Don't allow for your own independent property inspection Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors) Require you to pay for any renovation upfront Sell only in cheap. low end neighborhoods Don't accurately represent the neighborhood/property classification Don't have consistent rehab standards for all properties Don't provide a scope of work for the property Can't provide references of repeat investors Require you to close before a tenant is in place

Hello all,I'm looking to form a business with a physical presence in Wyoming, then purchase property there sometime later this year.

I have come up with in my pro forma about a 10+ cap, which flat out does not exist in today's CRE market.

Do I use a pro forma statement format and send it to them?

Do I use a pro forma statement format and send it to them?

Ask yourself what your goals are, form a plan, calculate what size investment you can make, and stick to your plan. 

Every broker’s OM is different, but it’s typically an analysis of the surrounding area, their version of the financials, their version of a pro-forma (how they think the property will operate after you renovate or purchase the property), what they believe the cap rate to be if purchased at asking and if all their numbers are correct, pictures of the property, current property vacancy rate, etc. - Property Tax Information.

The reason that I say it is a home run deal is because of the following:- It's already occupied- My local partner @Damon Caldwell will manage the property- CoC = 19.19%- Pro Forma = 10%- Cash Flow = $745/mo- 5-year Annualized Return = 20%My local partner and I have also signed our first SLO deal as of today!

Just like any turn-key investment, be weary of their pro-forma (projected returns).