A digital tool designed for rapid assessment of potential profit in short-term real estate transactions, this application typically requires inputs such as the after-repair value (ARV), estimated repair costs, and desired wholesale fee. For instance, if a property’s ARV is $300,000, repairs are estimated at $20,000, and the desired wholesale fee is $10,000, the tool would calculate a maximum allowable offer (MAO) of $270,000 for the wholesaler.
Such tools are invaluable for streamlining the decision-making process in wholesaling, enabling efficient evaluation of deal profitability. By quickly determining the MAO, investors can avoid overpaying for properties and maximize their potential returns. This practice has become increasingly popular in recent years as a strategy for accessing real estate investment without significant capital outlay. The ability to accurately and rapidly assess deals is central to success in this fast-paced market segment.
