I would like each of you to choose an item we've discussed from the profoma workups we've done in class and write me a two page paper on the importance of that component to the investor's decision making process. If you choose potential gross rent for example, discuss what potential gross rent actually means, how likely the investor is to achieve the potential gross rent, what happens if they don't, why would they not be able to achieve their PGR, etc. The proforma workup is Potential Gross Rent - minus vacancy and collection loss + plus other income = equals effective gross income -minus operating expenses, = equals Net Operating Income / Divided by a capitalization rate = equals indicated property value