Wholesalers & Birddogs: If you would like to submit a wholesale deal or lead, please review AARE’s criteria.
For us to consider your deal, you need to provide the following information:
- What the house will sell for after it has been rehabbed (ARV).
- The total rehab cost.
Calculating AARE’s Maximum Allowable Offer (MAO)
Maximum Allowable Offer 70% RULE
ARV x 0.7 (70%) – Rehab = MAO
$600K ARV house that needs $100K in rehab
$600K * 0.7 = 420K
$420K – $100K = $320K Maximum Allowable Offer (MAO)
Finding the After-Repaired Value (ARV)
Use valid comps from your investor-friendly agent. (At least 3-5 preferred).
AARE Partners’ criteria:
- Within 0.5 miles
- Similar Style
- Same # Bedrooms
- Same # Baths
- +/- 200 sq ft
- +/- 10 years in age
- Comps from last 3 months
- **Adjustments made for differentials