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Wholesale deal calculator.

By Fadi, founder of Tracepoint · Published · Last updated

This free wholesale deal calculator gives you your maximum allowable offer (MAO). Enter the after repair value, the repairs and your fee. The math is explained in plain English below the tool.

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What it sells for fixed up
Your best guess at the rehab
What you want to make
Most people start at 70

Maximum allowable offer

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Fill in all four boxes to see your number.

How the MAO formula works

Your maximum allowable offer is the most you can pay the seller and still sell the contract to a cash buyer. The formula is:

MAO = ARV × percentage − repairs − your fee

  • ARV is the after repair value: what the house should sell for once it is fixed up. Get it from recent sales of similar houses nearby.
  • The percentage is the share of ARV your cash buyer will pay before repairs. Most wholesalers start with the 70% rule. The other part covers the buyer's profit, loan costs and selling costs.
  • Repairs is your best estimate of the rehab. Walk the house if you can. Guess high, not low.
  • Your fee is your assignment fee. It comes out of the seller's price, because the buyer's price does not move.

A worked example

Say a house will sell for $200,000 fixed up. It needs $30,000 in repairs, and you want a $10,000 fee. At the 70% rule, the buyer pays up to $140,000 before repairs. Take off $30,000 for repairs and $10,000 for you, and your MAO is $100,000.

That is your ceiling, not your opening offer. Start below it so you have room to negotiate.

Mistakes that break the math

  • A hopeful ARV. Use sold houses, not listings. A high ARV makes every deal look good on paper.
  • A low repair number. Buyers will run their own estimate. If yours is light, the deal falls apart at their walk-through.
  • The wrong percentage. Ask two or three of your cash buyers what they pay in that area. Use their number, not a rule of thumb.

Found the deal? Trace the owner

A number on a calculator is only useful once you can reach the seller. Tracepoint gives a new account 5,000 free lookups, one time, no card, and the CRM comes with them.

Next, read how to find motivated sellers, how to find cash buyers and driving for dollars.

FAQ.

What is MAO in wholesaling?

MAO stands for maximum allowable offer. It is the most you can pay a seller and still leave room for your cash buyer's profit, their repairs and your assignment fee.

What is the 70% rule?

It says a cash buyer should pay no more than 70% of the after repair value, minus repairs. The rest covers their holding costs, selling costs and profit. It is a starting point, not a law, so change the percentage to match your buyers.

Where does my assignment fee go in the formula?

You subtract it along with the repairs. Your buyer's price is set by their own math, so your fee has to come out of what you offer the seller, not get added on top.

Why would I use a percentage other than 70?

Buyers in some areas pay more or less. Pricier markets and light rehabs often go higher. Heavy rehabs and slow markets often go lower. Ask your buyers what they pay.

I found a deal. How do I reach the owner?

Skip trace them. A new Tracepoint account gets 5,000 lookups one time, with no card, and the phone numbers land in a CRM you can call and text from.

Stop paying per lookup.

Free skip tracing, run on your own PC. The CRM comes with it.

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