A digital tool designed for real estate transactions assists in quickly estimating the potential profit from a wholesale deal. It typically requires inputs such as the after-repair value (ARV), estimated repair costs, and desired wholesale fee to generate a maximum allowable offer (MAO) for a property. For instance, if a property’s ARV is $300,000, estimated repairs are $20,000, and the desired wholesale fee is $10,000, the tool would calculate an MAO of $270,000.
This type of automated computation provides vital support for timely decision-making in a fast-paced market. Rapid assessment of potential profitability empowers investors to confidently evaluate deals and submit competitive offers. Historically, such calculations were performed manually, a time-consuming process that could hinder responsiveness. The digital format streamlines analysis, providing a significant competitive advantage and facilitating more informed investment strategies.
