Calculate your maximum allowable offer (MAO) for a wholesale deal. Adjust the rule percentage, see what the end buyer pays, and find out if the deal works for everyone.
Typically $5,000-$20,000
70% is standard, some use 65-75%
Maximum Allowable Offer (MAO)
$90,000
70% of ARV
$140,000
End Buyer Pays
$100,000
Your Assignment Fee
$10,000
How this breaks down:
ARV × 70% = $140,000
Minus estimated repairs: −$40,000
Minus your assignment fee: −$10,000
= Your max offer to the seller: $90,000
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Wholesaling is a strategy where you put a property under contract at a discount, then assign that contract to an end buyer for a fee. You never buy or renovate the property — your profit is the assignment fee. The key is buying low enough that the end buyer still has room to profit after repairs and selling costs.
The 70% rule is the standard, but it is not universal. In competitive markets, some wholesalers use 75% to win deals, accepting a tighter margin for the end buyer. In softer markets or with riskier properties, 65% provides more cushion. Adjusting the percentage lets you model different scenarios and see how it affects your MAO.
If a wholesale deal does not work, it might still be a viable fix and flip if you are willing to do the rehab yourself. Or consider whether the property would work as a BRRRR deal with a refinance after renovation.
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