Real estate investors can implement the Residential Proforma in their investment decisions by using it as a tool to analyze the profitability of a potential investment. The Proforma provides a ten-year financial outlook, adjusted for inflation, which can help investors understand the long-term viability of an investment. It calculates the cash reserves needed per year given the loan amount, down payment, and expenses. This helps investors strategize how much is needed in the bank to avoid foreclosure from unexpected costs. If the numbers are red, it's a signal to consult with an accountant to ensure the funds are readily available.
Need to compare real estate investment opportunities? Use the Residential ProForma spreadsheet to qu...
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