A financial model often used in real estate to predict future cash flows and total investment returns.

A pro-forma attempts to take into account all the variables such as potential gross income, vacancy allowance, expenses, and future interest rates among others, to model what anticipated returns on a project may be.

It is always important to remember that a pro-forma is a forward-looking projection or estimation and should not be relied upon as fact or a guarantee of performance. Investors should always verify or conduct their own due diligence for accuracy of assumptions.

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