Pro Forma Basics – Build the Financial Roadmap for Your Project
Every successful real estate project starts with a solid pro forma. But many first-time developers and nonprofit sponsors overlook the value of detailed, dynamic financial modeling. A pro forma isn’t just a budget—it’s your financial playbook.
What Is a Pro Forma?
A pro forma is a forward-looking financial statement that projects the income, expenses, financing structure, and returns of a development. It allows investors, lenders, and city officials to evaluate risk, understand impact, and compare alternatives.
Key Components
- Development budget (hard and soft costs)
- Sources & uses of funds
- Operating income and expenses
- Financing terms (interest, equity share, amortization)
- Exit strategy and investor returns (IRR, ROI, payback period)
Common Mistakes
- Underestimating soft costs or contingencies
- Overprojecting lease-up speed
- Ignoring tax and incentive structures
- Static models that don’t respond to scenario changes
Eluvial’s Advantage
Our team builds institutional-grade models customized to project type, location, and lender/investor requirements. We model multiple scenarios, sensitivity analyses, and breakeven points to help you make data-driven decisions.
Request a pro forma consultation → Contact us.
