You form a corporation for many reasons, but tax reasons are a big reason as well as asset protection.

He will be managing the property.To protect each other from and the property I believe we need to form a legal entity instead of a partnership.

Sean Kirkham If the fed raises rates 3 times in 2017 it's going to mess with more than a few pro-formas of non-all-cash buyers.

@Mike DymskiYou are absolutely right, Mike, in regards that the quote about IRR Investors was meant as a effect so that there is an understanding that the two are different and implies different Markets and Investment needs.The following is for the readers (not Mike Deymski only).I will say that there is another reason why those that do have the ability to Invest using IRR valuations  (in other words, they don't REALLY need the cashflow but would like to have it) DO NOT simply because they have not spent the time (and I would say it may take months to years) to truly understand the Calculation and how it works.It's the most comprehensive calculation you can have and requires you to do a pro-forma 10 year projection.The problem I find with a lot of BPer's is that they easily dismiss IRR because it's either too complicated and sophisticated that the newbie will need to spend time to learn it before jumping into Real Estate Investing.My personal opinion is that if you truly love Real Estate Investing and are truly motivated, you will eat, sleep and dream about Real Estate.

You’ll often see a section in the investment presentation that covers the assumptions that are being used in the development of the financials and the pro forma.

I started 12 years ago and am approaching 60 units this year and we are managing close to 600.You need to figure out how to create an accurate pro forma for each potential investment as well.  

We are using their nubers and not pro forma. 

However, I'm confused and not understanding your answer or what you exactly mean by mentioning about your primary-to-be in a pro forma investment terms? 

An "as-is" or pro-forma value.

Generalizing - to infer or form a general principle, opinion, conclusion, etc.