Running your numbers

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Determining Our MAO

Hey There Investors!! Moving on with our challenge of finding an off market deal and having it funded, 6 videos in and we are already on a good pace for the first step, finding the deal!! First however, we need to do our due diligence and make sure that we run our numbers properly. In this video we will work towards calculating our MAO (maximum Allowable Offer). Our formula is simple: MAO= (ARV x 70%) – construction costs Now yes, the formula is easy, but the tricky part is determining our variables (ARV and our construction costs). Those two aren’t always as straightforward as it seems. Check out the video on some tips and processes that we use to make sure that we are being as accurate as possible! Happy Investing! For more Information check us out at