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Think of your business as a 2-dimensional plane. On the top (x axis) is the status of each opportunity you are working on. Each phase represents the progress of a transaction. The left hand corner would be an initial prospecting activity followed by a proposal, then an exclusive to represent or an engagement letter (sale, lease, tenant, manage or finance), then negotiations, and then a letter of intent or letter of commitment, or possibly under contract and finally, closing on the far right.
On the left hand side (y axis) are probabilities, starting at 0% on the top, progressing downward to 100%. By positioning your deal status and likelihood on the appropriate intersection of the two vectors, you can identify the appropriate challenges and strategies for each opportunity in your pipeline.
In theory, as a deal progresses from proposal to contract, the likelihood of closing would increase as well, progressing from 0 to 100%. Commercial real estate transactions, unfortunately, do not generally fit this theory.
Each transaction is different and each has its own set of challenges. The Massimo CRE Opportunity Matrix is divided into four, equally spaced, quadrants. Which quadrant where your opportunity is positioned, provides you with insights of which factors need to be considered and what action steps need to be followed to ensure you are growing your business with high quality opportunities, as well as the appropriate strategies to move these opportunities through your business pipeline.
For a free copy of this new CRE tool and your own Matrix to refer to for all future opportunities, please click here.