Pro-forma

Pro-forma — projected financials for a property: expected rent, assumed occupancy, estimated expenses. Structurally identical to your underwriting spreadsheet with one difference — who wrote it and why. A seller’s pro-forma exists to sell (80% short-term occupancy in a 45% market, zero vacancy, dues omitted); this course’s rule is to re-derive every line from evidence before believing any of it. The word is neutral; the incentives never are.

First used in: 3.4 · Underwriting: the Gallinelli math