Wholesaling MAO Calculator
Calculate Maximum Allowable Offer (MAO) for real estate wholesaling using the 70% rule — ARV × 0.70 − repair costs − your wholesale fee. The instant-decision number every wholesaler memorizes before talking to motivated sellers.
The 70% Rule for Wholesaling
Maximum Allowable Offer = (ARV × 0.70) − Repair Costs − Wholesale Fee. The 70% factor is the cap-rate-equivalent buffer that gives an end-buyer flipper their 30% margin (acquisition discount + closing + holding + profit). In hot markets some wholesalers use 75-80%; in cold markets 65% is safer. The 70% rule is the BiggerPockets standard.
ARV — Get It Right or Lose Money
ARV (After Repair Value) is the post-rehab sale price the end flipper will achieve. Pull 3 sold comps within 0.5 miles, sold in last 6 months, similar square footage (±15%), same bed/bath count, similar style. Adjust for differences. Public records (Zillow, Redfin) are starting points but not authoritative — always verify with MLS comps when possible.
Repair Estimate Pitfalls
Most new wholesalers underestimate repairs by 30-50%. Use this rule of thumb: Light cosmetic ($15K-25K), Medium (kitchen, bath, paint, flooring) $30-50K, Heavy (systems, foundation, roof) $60-100K+. Always add 15-20% contingency. If you cannot accurately estimate repairs yet, partner with a contractor who quotes deals — pay them per deal for an estimate.
Wholesale Fee Strategy
Typical wholesale fees: $5K (small markets), $10-20K (most markets), $30K+ (high-value or commercial). Don't set the fee first — work backward from ARV and repair estimate. Your fee comes out of the spread between MAO and what the end buyer will actually pay (typically ARV × 75%). If the spread is under $5K, walk away.
Sources: BiggerPockets wholesaling guide, NAR 2024 investor profile. Last updated: May 2026.