I am going to form a LLC this February.

Do lots of pro forma tests on the properties.

They exist because of their simplicityAlso, another strategy to increase your asset protection would be to form a holding company for your real estate properties.

I'm putting together a pro forma for a large commercial retail development.

With wholesaling, I plan to form a different and new entity for any property I put under contract (i.e. 123 Main St, LLC).

The pro forma (potential) income from those vacancies can be used to evaluate the actual value of the property and the future value.

Here are my calculations using the BP analysis tool if we buy them as a package:Monthly Income: $2,795.00Monthly Expenses: $2,222.31Monthly Cash Flow: $572.69Pro Forma Cap Rate: 10.36% NOI: $13,983.00Total Cash Needed: $41,250.00Cash on Cash ROI: 16.66%Purchase Cap Rate: 11.19%Gross Rent Mult: 3.732% rule: 2.07Debt coverage ratio: 1.97Total monthly cashflow using the 50% rule: $804.94Here's one of my many questions: I entered 10% of gross monthly rents as expenses for both CapEx and repairs.

Why do you have to form a CA entity?

He is also looking to fund a large construction project for a 60+ unit apartment complex, and is seeking to form a syndication to help fund the construction.I'm attempting to help him by reaching out to accredited investors such as doctors and attorneys via phone/email to gauge interest.In reality, I have very little idea of what I'm doing, and am not sure if calling/emailing these individuals is kosher.Any thoughts/ideas/criticisms from those of you who are experienced in this area?

I am trying to identify the advantages and disadvantages between the two and I am not adverse to spending more money upfront to form a solid foundation.