Building Proformas That Actually Hold Up: Lessons from RealCap Academy

When it comes to multifamily rental development, one of the most critical, yet often underestimated, tools is the financial proforma. It’s not just a spreadsheet; it’s the foundation of your entire development strategy.

I recently had the chance to connect with Judy Husen, founder of RealCap Academy, who’s made it her mission to help developers across Canada sharpen their financial modeling skills. Judy’s hands-on approach has helped countless people make better project decisions, and after chatting with her, it’s easy to see why.

“The proforma is the backbone of your entire development plan,” Judy emphasized early in our conversation. And she’s serious about it. According to Judy, proforma modeling isn’t just a box to check at the start of a project, it’s woven into every stage. If your numbers aren’t rock solid from the beginning, the cracks will show later, usually when you’re already emotionally (and financially) invested. That’s when mistakes can become costly.

One thing Judy pointed out is how tempting it is to tweak numbers just to “make the deal work.” She admits she’s done it herself early on. But as she put it, discipline in your modeling, and being brutally honest with your assumptions, is what sets successful projects apart.

Where Proformas Go Wrong

When we got into some of the common mistakes she sees, Judy didn’t hold back. Missing details like bad market data, broken formulas, or overlooked costs can have a ripple effect that can seriously hurt a project’s viability.

Another trend she’s noticed: many developers now hand off the proforma modeling to analyst teams. Totally understandable, but also risky. “It creates a gap between the financial model and what’s actually happening on the ground,” she explained. If no one’s challenging assumptions, that gap can turn into a major blind spot.

For anyone new to modeling, Judy’s advice is simple: Study real proformas, copy them, and then build your own. And always get someone experienced to rip it apart. That feedback is gold, and it speeds up your learning curve in a big way.

How CMHC Financing Changed the Game

We also talked about how government financing, particularly CMHC’s MLI Select program, is changing how rental proformas are built.

“It’s a love-hate relationship,” Judy laughed. On the one hand, CMHC financing often makes rental deals feasible when nothing else will. On the other hand, the rules change so often it can leave

developers scrambling to adjust their model’s mid-stream. The recent updates to MLI Select, for instance, added stricter affordability requirements that completely shifted the math on some of Judy’s projects.

Luckily, she says there are some fantastic CMHC brokers out there who help developers stay creative, but as Judy put it, “the saga continues.”

When Sensitivity Analysis Saves the Day

One of my favorite parts of our conversation was hearing how sensitivity analysis, one of those technical-sounding tools that often gets overlooked, can actually save a project.

Judy shared a story about a rental redevelopment deal that looked great on the surface. But when they ran a sensitivity analysis on the exit cap rate, even a minor change crushed their IRR. That one exercise gave them the confidence to negotiate harder on the land price. When the seller refused to budge, they walked away.

Looking back, especially with today’s softer market, Judy said it was definitely the right call. “Sensitivity analysis forces you to confront your assumptions and prepare for multiple outcomes,” she said.

In other words: it’s a sanity check you can’t afford to skip.

Why RealCap Academy Exists

Before we wrapped up, I asked Judy what inspired her to start RealCap Academy in the first place. It wasn’t about becoming an Excel wizard, she said. It was about helping people make better development decisions.

What started as small, informal workshops for developers looking for a second opinion eventually grew into a full-fledged academy. Today, RealCap focuses on making the technical side of development more accessible, practical, and hands-on.

Want to Learn Proforma Modeling from the Ground Up?

If you’re looking to sharpen your proforma modeling skills, or build them from scratch, RealCap Academy’s Proforma Modeling for Multifamily Rental Developments workshop is a fantastic place to start.

The next live session runs May 5, 7, and 9, 2025, in a small-group format, featuring expert instruction, real-world examples, and tons of practical advice. You’ll leave with a Certificate of Completion, and, more importantly, a much stronger grasp of how the numbers drive smarter development decisions.

Special offer for readers: Use code DMC10OFF for 10% off your registration! 👉 Visit RealCapAcademy.com to sign up.

Big thanks again to Judy Husen for sharing her insights and real-world wisdom. Whether you’re an aspiring analyst or a seasoned developer, getting a better handle on your proformas might just be the smartest move you make this year.