What Is MAO?: investor-focused explanation
MAO stands for maximum allowable offer. It is the highest offer an investor can make while still preserving a target profit margin.
MAO definition
MAO helps investors avoid overpaying by anchoring the offer to ARV, repairs, and profit goals.
MAO for wholesalers
Wholesalers often use MAO to decide what they can offer a seller while leaving room for an assignment fee.
MAO for buyers
Cash buyers may use MAO differently depending on rehab scope, financing costs, and resale risk.
Frequently Asked Questions
What does MAO stand for?
MAO stands for maximum allowable offer.
How do you calculate MAO?
A common formula is MAO = (ARV × 70%) − Repairs − Wholesale Fee.
Does MAO guarantee a deal?
No. MAO is an offer guide, not a guarantee of buyer demand or seller acceptance.
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