How to figure out your MAO? #wholesaling #realestate
17 Jan 2024 · 0 min
0:17
In this brief instructional segment, the speaker clarifies a common misconception in real‑estate wholesaling: that the Max Allowable Offer (MAO) can be accurately calculated by simply multiplying the After‑Repair Value (ARV) by a fixed percentage (e.g., ARV × 93%). He emphasizes that while such a percentage can give a rough ballpark, it is not a reliable method for determining the true MAO. The speaker defines MAO as the highest price a wholesaler can offer a seller while still being able to sell the property profitably, setting the stage for more precise calculation methods that consider repair costs, closing costs, and desired profit margins.
