Before a shovel ever hits the ground, every successful real estate development starts with a proforma.

In this episode of the RMS Real Estate Development Podcast, Curtis Way and Dan Demers break down one of the most important tools in development: the apartment proforma. From land costs and construction budgets to financing, operating expenses, rental assumptions, and long-term returns, they walk through the numbers developers use to determine whether a project is viable.

The discussion covers how proformas help identify risk, why they must be continually updated throughout the development process, and some of the common mistakes that can lead to costly surprises.

Topics include:

• Land acquisition and off-site costs
• Construction budgeting and contingencies
• Soft costs, consultants, and legal fees
• CMHC financing and mortgage insurance fees
• Marketing and lease-up costs
• Rental assumptions and vacancy rates
• Operating expenses and property taxes
• Cap rates, valuation, and investment returns
• Cash-on-cash return versus internal rate of return (IRR)
• Why developers need to be realistic with their numbers

Whether you're an aspiring developer, investor, lender, or simply curious about how real estate projects are evaluated, this episode provides a practical look at the financial framework behind apartment development.

One lesson stands above all others: a proforma is only valuable if you're honest with yourself about the assumptions behind it.

To learn more about the RMS Group, please visit: https://rms-group.ca/

This series was produced by Road 55 in Edmonton, Alberta – Learn more at: road55.ca