Click here to download our Pro Forma!
<a href="https://axephilly.us16.list-manage.com/track/click?e=4f7f496ede&id=1c71010a9e&u=aec12e75eafbad26d53f25818"> <img src="https://images.squarespace-cdn.com/content/v1/63abb6da9c5dbf073cf40bfa/a260a93c-4856-4546-bdcc-ae3fcf8f0e6e/unnamed.jpg" alt="" loading="lazy"> </a>This excel sheet has been tested through our own deals and it's constantly evolving based on real world info that we're seeing from our deals. A few tips for those of you who are going to use this --
If the cell has a formula, don't touch it. If you don't understand the formula just reach out. You're on our email list now so just like in Fast and Furious, you're family. I will answer.
There are a lot of contingencies. This market is crazy, so use them all.
Your "worst case" in the for sale analysis is catastrophic market failure . . . think 'going back to 2020 levels'. The purpose of the worst case is to show you how much room you have in the deal until you lose money.
The goal is not to make the numbers show a great deal -- the goal is to get the numbers in the spreadsheet to match reality as close as possible. (No spreadsheet masturbation)
There are tabs for two options -- isolate only one variable for comparison at a time. Ex: When adjusted for risk, is our return better to raise equity at 12% or give money partner 50% equity in profits? Ex#2: Is the deal better as an easy two story flip, or should we add a third story on top? Etc .... One at a time ...
This is just a tool to help you analyze deals quicker. It's very accurate for a "back of napkin" analysis, but each deal you purchase will require it's own independent analysis --- my take right now is that if the strength of the deal is not glaringly obvious then it's not a good deal.
The return can be good . . . but how is it when you adjust for risk?