From the course: How to Analyze a Wholesale Deal in Real Estate
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The maximum allowable offer (MAO) - Microsoft Excel Tutorial
From the course: How to Analyze a Wholesale Deal in Real Estate
The maximum allowable offer (MAO)
- Hey guys, welcome back to the course. Earlier we started off with the ARV, the after repair value. In this lecture, we're going to go over the MAO or the maximum allowable offer. And why they're both really important when you're looking at a wholesaling deal. If we think of the ARV as the starting point in your analysis, we can think of the MAO as the ending point for your analysis. That is, we want to always start with the ARV, when it comes to the analysis. And then work our way to arriving at the MAO. Now there are some steps in the middle that we'll cover when we go over the formula that all wholesaling investors use. But first, what is the MAO? As the name might suggest, this is the most that you should offer for a deal on a property. When you do this right and you have an MAO that is accurate, you can then always confidently make offer on deals and know that if you get your deal, you're going to be in good shape. Get this wrong, however, and you could lose money in one of two…
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