Real Estate Blog

As a real estate investor, you’ll want to stick to certain principles that will give you a leg up against your competition. Abiding by these rules will not only raise your chances of achieving financial freedom, but will increase the speed, precision, and accuracy with which you make your decisions. This will free up more time for other profitable opportunities.

One such rule is the Maximum Allowable Offer Formula (MAO Formula) - a rule that will surely make you a better and more effective real estate investor.

• What Does MAO Mean in Real Estate?
• What Is The MAO Formula?
• How To Calculate The Maximum Allowable Offer?
• What Is The MAO Wholesale Formula?
• Can You Use The MAO Formula For House Flipping?
• How To Create A Maximum Allowable Offer Spreadsheet
• Final Thoughts

What Does MAO Mean in Real Estate?

The Maximum Allowable Offer (MAO) is a tried-and-true calculation real estate investors use to determine the price they would like to offer on a particular investment...

House flipping, when done correctly, can be an extremely lucrative way of generating market-beating profits in a very short time frame.

Like most real estate investing decisions, the investor must act with precision and a scrupulous dedication to expense management.

Believe me, making a 15% or better return in a 6 month timeframe is nowhere near out of the question. All you need to do is abide by the holy grail of house flipping - the 70% Rule.

• What Is The 70% Rule In House Flipping?
• What Does 70% of ARV Mean In House Flipping?
• Uses of the 70% Rule In Real Estate
• The Math In A House Flipping Deal
• How Accurate is the 70% Rule In House Flipping?
• Final Thoughts on the 70% Rule in House Flipping

What Is The 70% Rule In House Flipping?

The 70% Rule is a rule of thumb that helps real estate investors find attractive real estate investments, appropriately budget their costs, and ensure they make a substantial profit along the way. It’s a great rule for a house flipper to...

In the real estate business, there are plenty of acronyms and lingo that may sound like a foreign language. In fact, Redfin's Real Estate Glossary has over 200 different terms!

Real estate investors, in particular, seem to have their own way of speaking that leaves most real estate agents scratching their own heads.

Wholesalers, house flippers, and property rehabbers pay special attention to a term that has a major impact on their business and that's ARV! If you want to learn more about flipping houses, this acronym is definitely something you should get familiar with!

Understanding a property's ARV can save you a ton of money and give you peace of mind knowing you are making the right investment decision. Without it, you are playing a dangerous game that could lead you devastated.

That's why we are providing you with this in-depth article to help ensure you make the right moves in this simple yet complex real estate investing...