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.
Frequently Asked Questions
What is the 70% rule in real estate wholesaling?
MAO = ARV \u00d7 0.70 \u2212 Repairs \u2212 Wholesale Fee. The 70% factor gives the end flipper a 30% buffer for closing, holding, profit. Standard since BiggerPockets popularized it.
Should I use 65% or 70% or 75%?
70% is the standard. Use 65% in cold/declining markets. Use 75% in hot/rising markets where end buyers will pay more aggressively. Never below 60% or above 80%.
How accurate must my ARV be?
Critical. ARV errors of 10% turn winning deals into losers. Pull 3 sold comps minimum (last 6 months, 0.5 mile, similar size/style). Don't use Zillow Zestimate alone \u2014 verify with MLS.
What if my MAO is below what the seller wants?
Walk away. Wholesaling profit comes from buying right. Negotiating up from MAO leaves no margin for repair surprises or comp errors. Discipline beats deal addiction.
Is this tool free?
Yes. 100% free, no sign-up. All math runs in your browser \u2014 your deal numbers never leave your device.