Wholesaling Assignment Fee Calculator - MAO Analysis

Calculate Maximum Allowable Offer (MAO) and assignment fees for wholesale real estate deals. Perfect for real estate wholesalers looking to maximize profits while ensuring attractive deals for end buyers.

Real Estate Wholesaling
MAO Calculator
Assignment Fee

Quick Answer: Maximum Allowable Offer Formula

MAO = ARV - Repairs - Closing Costs - Financing - Assignment Fee - Wholesale Fee

Example: $200,000 ARV - $30,000 repairs - $6,000 closing - $4,000 financing - $10,000 assignment - $10,000 wholesale = $140,000 MAO
Your Profit: $10,000 assignment fee (7.1% margin)
End Buyer Equity: $200,000 - $140,000 - $30,000 = $30,000 (21.4%)
Typical Assignment Fee: 5-10% of ARV or $5,000-$15,000

Property Details

Estimated market value after repairs are completed

Total cost of all repairs and renovations

Typical range: $5,000-$15,000 (5-10% of ARV)

Cost Percentages

Typical: 2-4% for title, recording, attorney fees

Hard money points, loan fees (0-3% typical)

Additional fee for end buyer (3-7% typical)

Real Estate Wholesaling Guide

What is Real Estate Wholesaling?

Real estate wholesaling is a strategy where investors find distressed properties, get them under contract, and then sell that contract to an end buyer for a profit. As a wholesaler, you never actually own the property - you're essentially being paid to find and secure good deals for other investors.

How to Calculate Maximum Allowable Offer (MAO)

The MAO formula is crucial for successful wholesaling. You need to account for all costs and ensure there's enough profit margin for the end buyer. The key is leaving sufficient equity (typically 20-30%) for your buyer while securing your assignment fee.

Key Wholesaling Metrics

  • Assignment Fee: Your profit for finding the deal (5-10% of ARV)
  • Repair Costs: Accurate rehab estimates are critical
  • Closing Costs: Title, recording, attorney fees (2-4% of ARV)
  • Financing Costs: Hard money points and loan fees
  • End Buyer Equity: Must be 20-30% for attractive deals

Tips for Successful Wholesaling

  • Build a reliable network of cash buyers and hard money lenders
  • Get accurate repair estimates from contractors
  • Understand your local market and ARV calculations
  • Have your attorney review contracts before signing
  • Focus on properties with clear profit potential

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