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MAO Calculator

Calculate your Maximum Allowable Offer (MAO) — the highest price you can pay for a distressed property and still profit. Uses the industry-standard 70% rule with a customizable margin and wholesale assignment fee.

MAO Calculator

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What is MAO (Maximum Allowable Offer)?

MAO is the maximum price a real estate investor should pay for a property to maintain acceptable profit margins after all costs. It's the foundational calculation in wholesale real estate, fix-and-flip investing, and distressed property acquisition.

The 70% Rule Explained

The 70% rule is the most widely used formula in real estate investing: MAO = (ARV × 0.70) − Repair Costs. The 30% buffer accounts for selling costs (agent fees, closing costs), holding costs (taxes, insurance, utilities), contingencies, and the investor's profit margin.

MAO for Wholesalers vs. Fix-and-Flip Investors

Wholesalers use MAO differently than fix-and-flip investors. A wholesaler's MAO is actually split into two numbers: the price they offer the investor (true MAO) and the price they offer the seller (MAO minus their assignment fee). The spread is the wholesale fee — typically $5,000–$20,000 per deal.

Frequently Asked Questions

What is MAO in real estate wholesaling?

MAO (Maximum Allowable Offer) is the highest price a real estate investor should pay for a distressed property to still make a profit after repairs and selling costs. It's calculated as: MAO = (ARV × 70%) − Repair Costs.

What is the 70% rule in real estate?

The 70% rule says investors should pay no more than 70% of a property's ARV minus repair costs. This 30% buffer covers holding costs, selling costs (agent fees, closing), and profit margin.

How do wholesalers use MAO?

Wholesalers calculate MAO to determine the maximum price they can offer a motivated seller. They then subtract their assignment fee to find the true max offer to the seller, keeping the spread as profit.

Can I use a higher percentage than 70%?

Yes — in hot markets with low days-on-market and strong appreciation, some investors use 75–80%. In slower markets or with heavy rehabs, 65% is safer. Our calculator lets you adjust the percentage.

What is a typical wholesale assignment fee?

Wholesale assignment fees typically range from $5,000 to $20,000 per deal, with $8,000–$12,000 being most common. Higher-priced markets and harder-to-find deals can justify larger fees.