Commercial real estate loan application packages typically contain cash flow estimates that look at the expected cash flow from rental operations for the subject property.Specifically,lenders provide the borrower with a discounted cash flow analysis commonly referred to as a(n):

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A pro forma is a financial statement that includes projected income and expenses for a business or property. In the context of a commercial real estate loan application, the pro forma is a discounted cash flow analysis that estimates the expected cash flow from rental operations for the subject property. The pro forma is an important part of the loan application package, as it helps the lender assess the borrower's ability to repay the loan.

Commercial Real Estate Loan Application Packages Typically Contain Cash Flow