How to Use This
- Score each category 0–3
- Be honest (brutally)
- Add the scores
- Let the math—not hope—decide
Scoring Key
|
Score |
Meaning |
|
3 |
Strong / Lender‑Friendly |
|
2 |
Acceptable with Conditions |
|
1 |
Weak / Headache |
|
0 |
Deal Killer |
Core Viability Matrix
|
Category |
0 – Deal Killer |
1 – Weak |
2 – Acceptable |
3 – Strong |
|
Borrower Credit |
<620, unresolved events |
Marginal, recent issues |
Clean but thin |
Strong, documented |
|
Liquidity / Net Worth |
Undisclosed or nonexistent |
Bare minimum |
Adequate for leverage |
Clearly exceeds needs |
|
Experience (Sponsor) |
First‑timer, no bench |
Adjacent experience |
Relevant track record |
Proven executor |
|
Property Quality |
Obsolete/distressed |
Tired/special‑use |
Marketable |
Prime / stabilized |
|
Cash Flow / DSCR |
<1.00 or speculative |
Thin/pro forma heavy |
Acceptable with cushions |
Strong & proven |
|
Leverage (LTV / LTC) |
Aggressive/unrealistic |
High risk |
Market‑aligned |
Conservative |
|
Exit Strategy |
“The market will…” |
Soft assumptions |
Logical, documented |
Clear & verifiable |
|
Documentation Quality |
Missing/inconsistent |
Late & messy |
Complete but slow |
Clean & prompt |
|
Timeline Reality |
Fantasy |
Optimistic |
Reasonable |
Conservative |
|
Borrower Behavior |
Defensive/evasive |
Overconfident |
Cooperative |
Professional |
Score Interpretation (This Is the Part People Ignore)
25–30: GREEN DEAL
✅ Proceed aggressively
Broker Action
- Selectively shop lenders
- Maintain leverage in negotiations
- Protect speed and momentum
Reality
This deal has a spine.
18–24: YELLOW DEAL
⚠️ Proceed with restructuring
Broker Action
- Reset leverage or pricing early
- Pre‑educate Borrower
- Control lender exposure
Reality
This can fund—but only if everyone behaves.
10–17: ORANGE DEAL
🟠 Park or deeply restructure
Broker Action
- Stop mass submissions
- Demand fixes before resubmitting
- Reduce time investment
Reality
This deal is one bad email away from death.
0–9: RED DEAL
🛑 Kill it
Broker Action
- Walk immediately
- Document your exit
- Save your calendar
Reality
No lender. No structure. No miracle.
Mandatory Override Rules
(Read These Twice)
- Any 0 in Credit, Exit, or Documentation → Automatic Orange or Red
- Borrower Behavior ≤1 → Deal likely dies late and loudly
- More than two categories scored 1 → Expect slow fade
- Borrower arguing the matrix → Add one hidden −2
Broker Self‑Preservation Checklist
Before submitting a deal, ask yourself:
- Would I fund this with my own money or Grandma’s money?
- Can I explain the risks in one paragraph?
- Have I prepared the Borrower for worse terms?
- Do I already have a Plan B lender
If any answer is “no”—pause.