I’m not looking it for me. If it makes sense in numbers I will bring it up to someone else. To a local investor or I don’t know if the rules allow it, but post the address of it for ppl here if they are interested. No charges nothing, just so I can learn how to do it.
Be careful about pro forma statements. They usually assume 100% occupancy and tend to minimize expenses.
Stay away from pro formas. they aren’t worth their weight in gold. You want actual financials to determine proper calculations.
Pro forma operating numbers are “what if” numbers.
What if the building was in perfect operating condition and the vacancy was actually just 5%, and there was no deferred maintenance, and all the expenses tightly controlled …if so, then this is what might be possible.
Otherwise, pro forma statements are just guesses at what’s possible.
Frankly, many sellers list their properties with no other objective than to test the waters for interest, but no real need or desire to sell without getting a ridiculous price. And the agents are just marketing these properties to get their phone to ring with prospective buyers for “other” properties (the ones that are really for sale).
Frankly, the really good deals don’t get to the MLS in the first place. Agents maintain a solid buyer pool they can pitch to, without having to share the commission. That’s why so much listed property is crap. It’s fully exposed and picked over already.
Meantime, a pro forma does provide a starting point for income and expenses on a building that is under, or non-performing and has no reliable numbers to work with. However, we have to verify the numbers, not depend on them. If the pro forma numbers are way off, then we use that to adjust the offer when it’s in our interest.
When a seller tells me that his sale price is based on a 10 CAP Pro forma, I say, “That sounds great, I will buy at a 10 CAP.” Then after we open escrow I systematically verify the operating numbers, and always discover that to maintain that 10 CAP, I have to adjust the price.
Of course that’s a gross simplification, but using the seller’s pro forma against him, is a great way to negotiate profitable prices and terms.