If you do not form a limited liability entity (LP, LLC, or S-corp) then you will be deemed to be a general partnership. 

Looking to form a partnership in southern California and would like to learn from others as to the best/most economic process for getting a solid contract in place.  

California does not recognize series LLCs.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

The pro-forma of this investment is 31%; that includes the "big down payment."

If you’re doing a big renovation or looking to sell proforma numbers to the bank then do a couple of iterations on the calculator like “as-is”, “12 month pro-forma”, and/or “after stabilization” and explain the business plan in the email. 

I've seen a number of Pro Formas in my short time researching and investing in real estate so these concepts weren't necessarily NEW, but it was a good closer look at the structure of a proforma, and the formulas that make up the many aspects of a pro forma, and what they translate to... what they tell you about a particular investment exactly.

You can make some assumptions about the property, creating a "Pro Forma" income statement.

The problem is if you pay rosy pro-formas at low caps then you can stand to lose your shirt.

It's like dating...very difficult to walk up to an random girl and ask them out straight up...you need to form a connection through conversation. 

Sometimes those numbers simply don't intersect.This really isn't much different than someone saying we're renting the 4 units for "below market value" at $300/month and you can "easily raise the rents" to $450/month and then trying to do their pro forma based on $450 a month.As for appraisals.