Learn the Cat 1, Cat 2, Cat 3 intake system used by professional asset-based buyers to quickly evaluate deals, eliminate noise, and choose the right takeover strategy.
Every deal falls into ONE of three categories.
Your job at intake is not to negotiate — it’s to sort.
Definition:
• Priced at or below income reality
• Seller flexible or motivated
• Clean path to cash flow or takeover
• Structure solves the seller’s problem
What this looks like:
• Below or near 10-cap on real NOI
• Debt can be taken over, wrapped, or replaced
• Paperwork exists or can be produced quickly
Runway:
➡️ Immediate underwriting
➡️ Certainty Kit™ sent
➡️ LOI / EMSA drafted
➡️ Title + lender looped in
Definition:
• Numbers don’t work yet
• Seller anchored to price
• Missing info
• Needs time, education, or pain
What this looks like:
• Slightly overpriced
• Pro-forma heavy
• Seller says “I’m not in a rush”
Runway:
➡️ Acknowledge
➡️ Educate
➡️ Follow-up cadence
➡️ Re-enter as Cat 1 later
Definition:
• No flexibility
• Fantasy pricing
• No documents
• Emotional seller + retail expectations
What this looks like:
• Price has nothing to do with income
• “This area is hot” logic
• No structure allowed
Runway:
➡️ Polite decline
➡️ Keep door open
➡️ Move on immediately
You don’t waste time convincing.
You let math and structure do the talking.