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Marathon Development, Inc.

SERVICES: Pro Formas

Marathon has created scores of pro forma's, it's one of the first studies undertaken to determine the viability of the proposed project. Pro forma's of income and expense are a fundamental document that determines; rent, vacancy, operating costs, net operating income (NOI), loan amount and equity requirement. The pro forma determines the level and frequency of revenue minus unit vacancy, minus monthly or annual operating costs. Operating costs include personnel salaries, taxes, benefits, and works comp. Dietary services, resident services, support services, maintenance, taxes, utilities and capital expenditures. The resulting cash flow after deduction of vacancy and operating costs is called Net Operating Income (NOI). NOI divided by a debt cover ratio of 1.20 — 1.50 determines the monthly/annual funds available to service the project debt service/mortgage. The debt service/mortgage is a function of the NOI, current interest rate and loan amortization. Once the loan amount is determined it is subtracted from the acquisition price or construction cost which determines the project equity. Besides the market study, the pro forma is the one of the first documents created to determine the project potential. Let Marathon use its experience in helping you create and model your proposed project's pro forma.

For more information on the services that Marathon provides, please Contact Us at 425-747-9952.


Specializing in Senior Housing for Profit and Non-Profit Organizations
Providing Real Estate Development & Consulting Services Nationwide

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