MAO Calculator
Calculate your Maximum Allowable Offer (MAO) for real estate wholesaling using the 70% rule. Estimate repair costs, ARV, and assignment fees to find your buy price.
Wholesale MAO Calculator
Find your Maximum Allowable Offer instantly
What the home is worth FULLY renovated
The 70% Rule: Investors typically want to buy at 70% of ARV minus repairs. This 30% margin covers closing costs, holding costs, and profit.
Pro Tip: In hot markets, you may need to use the **75% or 80% rule** to get contracts accepted, but this reduces the buyer's profit margin.
How to Use the 70% Rule in Real Estate Wholesaling
The 70% Rule is a core principle used by real estate investors and wholesalers to determine the maximum price they should pay for a distressed property. This Wholesale MAO Calculator automates that math to ensure you always have enough margin for your buyers and your own assignment fee.
What is MAO (Maximum Allowable Offer)?
MAO is the highest price you can offer a seller while still leaving enough room for a fix-and-flip investor to make a profit after paying for repairs, holding costs, and your wholesaling fee.
The Basic Formula:
Key Variables Explained
- ARV (After Repair Value): This is the estimated market value of the property after it has been fully renovated. You find this by looking at "comps" (comparable recently sold homes) in the immediate area.
- Repair Estimate: A rough calculation of what it will cost to bring the property up to the ARV standard. For wholesalers, a "ballpark" estimate per square foot is often used.
- Wholesale Fee: This is your profit. It’s the amount you charge the end buyer for assigning them the contract.
When to Break the 70% Rule
While 70% is the gold standard for many fix-and-flip investors, it isn't set in stone. In highly competitive "hot" markets, many investors are willing to pay 75% or even 80% of ARV minus repairs because they are banking on rapid appreciation or have lower overhead costs.
Pro Tip for New Wholesalers:
Always overestimate repair costs by 10-15%. Deals often "fall apart" at the closing table because the end buyer realizes the repairs are more expensive than what the wholesaler initially quoted.
The tools and calculators provided on The Simple Toolbox are intended for educational and informational purposes only. They do not constitute financial, legal, tax, or professional advice. While we strive to keep calculations accurate, numbers are based on user inputs and standard assumptions that may not apply to your specific situation. Always consult with a certified professional (such as a CPA, financial advisor, or attorney) before making significant financial or business decisions.
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