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.
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.
Frequently Asked Questions
Do I need a real estate license?
Wholesale itself = ASSIGN contract (not selling property). Most states allow without license. Few states (IL, OK) require. Always check your state's wholesaling laws.
How accurate must rehab estimate be?
Within $5-10k. Use $/sq ft formulas + cosmetic punch list. Walk property with contractor before locking up. Overestimate = lose deal. Underestimate = wholesale fee shrinks.
What if no flipper buys at my fee?
Lower fee, increase price to seller (renegotiate), assign to landlord investor (often pay slightly less but close faster), or walk away.