“YOUR” Maximum Allowable Offer (MAO)

Rich Dad Education - Real Estate Blog

MAOHow much can you offer for a property?  You must know this number before you make an offer.  You also need to have an idea of what exit strategy you intend to use before you make the offer.

If the MAO (maximum allowable offer) is “X” what is the ARV (after repair value) of the subject property?  What is that number percentage wise?  In order to determine this, you need to know what type of spread wholesale buyers are looking for in your area.  This will vary depending on your market conditions.  Sometimes that percentage needs to be adjusted up or down depending on your market.

For example:

Wholesale buyers in major California markets, New York City or the DC area MAY be buying property at 90 to 95% of FMV as there is a great demand for property.  Retail buyers are paying full asking price and higher for properties…

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About wholesomehomes

We are a small real estate investment company that specializes in tenant placement and investment properties. Our headquarters is in Eaton Rapids MI and has a satellite office in Austin, TX.

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