Property Analysis, Scope of Work and Pro Forma
Templates for the forms we use and can (hopefully) help other real estate investors
From time to time I get requests for our standard property analysis, scope of work and pro forma templates. This mostly came from a relatively popular, long essay I wrote for BiggerPockets on due diligence as well as a follow up on putting a scope of work together and a video on the same topic.
Due diligence and properly estimating rehab costs is, in my humble opinion, the most important thing a real estate investor needs to get right and the one they most often get wrong. (Which is why I always recommend J. Scott’s excellent The Book on Estimating Rehab Costs to any aspiring investor.)
This one-page sheet is actually based on J. Scott’s book and I think both thorough without being overly cumbersome.
The following template is for putting together both scopes of work for any rehab or turnover. It’s much longer and more detailed but by the time you’re putting together a scope of work, it’s absolutely worth the extra time to get it right.
Finally, below is my quick pro forma. It provides a quick analysis of how well a house, apartment or portfolio is likely to do with any given set of assumptions. I don’t trust pro formas provided by sellers and but they are important to construct yourself before buying or refinancing. (Although I should note I use a more detailed one when analyzing large acquisitions.)
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You can find my other book, Awesomeness, here.
And the audiobook here.
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