Fractional Dutch Auctions of Commercial Income-Producing Real Estate Properties - TIC Plan Ownership Syndications

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Due Diligence Documentation "Exhibit F-5"

Pro Forma Financial Presentation

The following notes are provided pertaining to this exhibit:

  1. What: a pro forma financial presentation report is the document that is most frequently read and modified because it focuses on the investment and the cash flows - the most important aspects of any commercial real estate development projects.

  2. When: at the pre-construction phase once the Market Feasibility Report (see Exhibit F-3) is complete and accepted by the Developer.

  3. Why: every institutional investor and commercial bank lender requires the production of a pro forma financial presentation or financial feasibility study that substantiates the proposed project's anticipated cash flows from operating and non-operating activities.  This document provides the Design/Builder with a construction budget, the Project Property Manager with an operations budget and prospective investors with information regarding the potential economic risks and rewards.

  4. Where: this document is transmitted to the Developer as an electronic file document that is available to all parties.

  5. How: the consulting firm reviews the Owner's Program and the Market Feasibility Study's findings in order to provide the pro forma financial presentation.

  6. What's important: this document should be comprehensive in nature with all departments and line items accounted for on a calendar month basis and annual basis.

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