Class D is a PITA and pro forma returns on these are fictitious.

Here are some things to watch out for and avoid as you evaluate different companies: 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 inspectionAre 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 upfrontSell only in cheap. low end neighborhoodsDon't accurately represent the neighborhood/property classificationDon't have consistent rehab standards for all propertiesDon't provide a scope of work for the propertyCan't provide references of repeat investors

Again, others might feel differently here.3) property level due diligence: (takes seconds to weeks per deal): here is where I drill in with the low-level details.a) pro forma popping: I examine all the assumptions, and see if they are overoptimistic or not.

My friend has an existing business/LLC and we are combining/adding dimensions to that existing business to form a new one.

Hi @Jennifer Shen - I find that most Turnkey companies input very low assumptions for reserves into their pro forma, which can make the Monthly Cashflow look a lot better than it actually is.

I'm trying to form a stronger relationship with a local bank.

Many of the new construction properties have comprehensive warranties for the first 1-2 years where you will have no maintenance, but we are still factoring it into the pro forma. 

Knowledge is information that is connected to form a system and a plan of action. 

I just happened to log in to Stessa for some reason the other day and noticed previously free features (e.g. pro forma) are behind a paywall now.

Our CFO's (cash flow opportunity sheets - mini pro-forma) have ALL anticipated expenses on them.