YieldBadger

Wholesale max allowable offer (MAO) calculator

Use the 70% rule to find the most you can offer a seller while leaving room for your assignment fee and the end buyer's profit.

Deal
$
$
%
$
Max offer to seller
$150,000
End buyer's max price
$160,000
ARV × rule %
$210,000
− Repairs
$50,000
− Assignment fee
$10,000
Max offer to seller$150,000

How this is calculated

  1. 1End buyer's max price = ARV × rule % − repairs.
  2. 2Max offer to seller = end buyer's max price − your assignment fee.

The 70% rule is a rough screen, not an appraisal. It assumes the remaining 30% of ARV covers the end buyer's holding, financing and selling costs plus profit.