What's the difference between building a proforma and underwriting
What's the difference between building a proforma and underwriting?I've been doing both but never really understood the actual difference.
What's the difference between building a proforma and underwriting?I've been doing both but never really understood the actual difference.
| +35 | Q&A | Founder, ten31 Media, The Promote | (10+ years in CRE Media) | 10 | 10h |
| +29 | The Punch Mayweather Didn't See | 13 | 1d |
| +6 | Acquisitions Experience Needed? | 1 | 21h |
| +3 | Nuveen Associate Case Study | 1 | 19h |
| +3 | Land Development Discussion | 1 | 2d |
| +1 | Blackstone RE AM? | 2 | 19h |
Career Resources
I would say they are the same. But technically speaking, one may say underwriting is the act of doing diligence and making the proforma while building a proforma is just the model.
Pro forma is just the numbers while underwriting is everything - doing diligence on the JV Partners, the market, leasing and sales comps, cost basis analysis, environmental, etc etc
Ultimately they have the same result, a proforma (i.e. the model). If you want to be really specific, building the proforma is just modeling, while underwriting covers the entire process (research, diligence, etc.).
Et nostrum ipsam eos nihil et dolorum quo autem. Repellendus laudantium praesentium labore qui non sunt consectetur. Molestiae nihil consequatur voluptatum aperiam est ipsa.
Est nam quae commodi nulla itaque quasi impedit. Nihil debitis assumenda eum voluptatem dolor expedita. Quia quis exercitationem voluptas aliquid asperiores. Veritatis ut eligendi qui cupiditate dolorem voluptatem sint.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...