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Prospect Research and Management

Question: I notice that some of your capacity ratings are inaccurate. Can you explain?

Answer: First of all, as you already know, prospects themselves do not know how much they can give. Secondly, in many cases, capacity is based solely on real estate because real estate is the only information we found. Some issues with real estate are: $1M buys more real estate in some areas than others; someone who owns valuable property may not be wealthy; property may have appreciated in value over a long period of ownership; property may be heavily mortgaged. However, please also keep in mind that since real estate only represents a very small (20 to 25 percent) of the prospect's total assets we should understand the assumption that if they own real estate they also own other assets.

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Prospect Research and Management

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