Wholesaling MAO 70% Rule Calculator 2027

Calculate Maximum Allowable Offer (MAO) using 70% rule for wholesaling 2027 — ARV × 70% − rehab − wholesale fee = your offer to seller.

Ad Space

70% Rule Origin

Decades-old flipper standard. Buy at 70% of ARV minus rehab. Builds in 30% margin for holding costs, financing, closing costs, sales costs, profit. Below 70% = unprofitable for cash flippers.

MAO for Wholesalers

Wholesaler MAO = Flipper MAO − Wholesale Fee. Because flipper buys assignment from wholesaler. Wholesaler must offer seller a price low enough that BOTH wholesaler fee AND flipper profit fit.

Adjusting the Multiplier

Hot markets (HoT, low inventory): use 75-80% (flipper margin shrinks). Cold/buyer's market: 65% (flipper needs more cushion). New construction sub: 80%. Heavy rehab risk: 60%.

Wholesale Fee Norms

Typical: $5-15k for $200-400k properties. $15-30k for $400-800k. $30-50k+ for $800k-$1M+. Larger deals can wholesale for $50-200k. Fees must be realistic — too high = no flipper buys.

Source: biggerpockets.com wholesaling guides, nationalresidentialinvestors.com MAO formula. Last updated: May 2026.