Don’t Forget the MAO!

There are three formulas hidden somewhere in today’s post. We are giving a copy of Roger Blankenship’s best-selling book, “Flipping Houses in Ten Days” to the first five people who spot them and tell us. Just reply to this email and we will let you know whether you won! Woo Hoo!

MAO stands for “Maximum Allowable Offer” and is a good rule of thumb for purchasing properties to flip. If you know the ARV (After Repair Value) and the Repair cost, you can use this formula to determine what you should offer for a property. Here is the formula:

ARV * .7 – Repairs = offer price. 

Suppose a house will be worth $200,000 when you’re finished and it will take $50,000 to repair it. Using this formula you will know to offer $90,000. 

Click here for a complete explanation for why this should be the offer. Get answers to the questions: “Is This Greedy?” and “What if I never get any offers accepted?”

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