Contractor · Miami, FL · Member since 2020 · 146 posts · 50 votes
Hi everyone, I normally do New Constructions but I have a Fixer upper that landed on my lap, being the first time using the Fix and Flip Report I would like any suggestions you have over this.
When you do the Fix and Flip Report, I inputted all my numbers and at the top it say “Maximum Allowable Offer” what does that pertain to?
Hi everyone, I normally do New Constructions but I have a Fixer upper that landed on my lap, being the first time using the Fix and Flip Report I would like any suggestions you have over this.
When you do the Fix and Flip Report, I inputted all my numbers and at the top it say “Maximum Allowable Offer” what does that pertain to?
Maximum Allowable Offer usually pertains to the maximum purchase price on the deal to achieve the outcome you are looking for. It's hard to say what it truly is without the actual context - but generally, it's the max purchase price.
Wholesaler · Irvington, NJ · Member since 2025 · 112 posts · 53 votes
1y
Hi Adrian, The Maximum Allowable Offer is basically the highest price you can pay for the property while still hitting your target profit, after accounting for repairs, holding costs, and selling expenses. Think of it as a ceiling that helps you avoid overpaying. If your deal numbers change (like rehab costs going up or ARV adjusting), your MAO will shift too. It's a safeguard to keep you from getting squeezed on margins.