Find The Maximum Allowable Offer

Intro: Why This Warning Matters

The hot real estate market draws eager new investors—many of whom overpay without realizing it.

In wholesaling, paying too much isn't just a rookie mistake — it's a fast track to failure.

At Property M.O.B., we don’t sugarcoat anything. This article isn’t just about running numbers — it’s about protecting your future deals, your reputation, and your real money.

Inside, you'll learn:

If you want to survive — and thrive — you need to dominate both the math game and the mental game.
This post shows you how, M.O.B. style.


What Is Wholesale Real Estate (And Why It Attracts Beginners)

Wholesaling real estate offers simple entry: no license, no credit, little cash needed.
Quick profits are possible—but only with the right structure and strategy. Learn more about the pros and cons of wholesaling real estate.

Wholesalers act as the bridge between distressed sellers and property investors.

Top wholesalers master:

They build networks of real estate agents, contractors, and cash buyers.
They read market conditions, maintain transparency, and control fixed costs.

At Property M.O.B., we turn hustlers into pros. Know the market. Know the math. Control the money.


Understanding MAO: Maximum Allowable Offer

The Maximum Allowable Offer (MAO) real estate term is non-negotiable. It's your sword and shield.

Classic formula:

(After Repair Value × 70%) – Repair Costs = MAO

Here’s the hard truth:
If you exceed the MAO, you wreck your desired profit margin—or worse, you blow the entire real estate deal.

Real estate investors must know:

Never offer your Maximum Allowable Offer first. Start lower to anchor negotiations.

Exit Strategy Matters:

Different plans = different math. Lock this in.

Master the maximum allowable offer formula and stop trusting your gut. Trust your numbers.


The Real Problem: Why New Wholesalers Overpay

Newbies fail for simple reasons:

Overconfidence plus unknown expenses is a killer combo.

Reminder: Zillow's Zestimate ignores property condition, lot size, proximity, and rehab costs. Don't let a Zestimate set your repair value or after-repair assumptions.

Overpaying drains your cash flow, piles up expenses, and murders your ROI.
Real success comes from accurately calculating—not guessing.


Competition: The Two Types of Newbies You're Competing With

Wholesaling is filled with:

Don’t be a reckless newbie who ruins deals for everyone.
Be the pro who calculates offers based on accurate methods and clear calculation estimates.


Sellers Value Trust Over Highest Price

Forget offering the highest price just to “win.”

Sellers want:

Solve their problem, honor your word, and stick to your purchase price.

At Property M.O.B., we teach you to win deals by being the safest bet — not the flashiest talker.


Don’t Compare—Prepare

This isn’t Instagram wholesaling.
This is serious real estate investing.

Focus on:

Wholesaling is an exact science built on numbers—and a mental discipline built on consistency.

Every real estate investor worth their salt masters this.


Action Over Outcome: Focus on Your Inputs

Obsess over the right things:

Every property you inspect sharpens your gut—and your numbers.
Property inspections reveal hidden renovation costs before they kill your profit margin.


Ego Is the Enemy of Profit

Ego says, "I know better."
Reality says, "Stick to the MAO formula."

Smart investors master humility, not hype.

They:

Stay sharp. Stay calculating. Stay profitable.


Two Fixes That Solve 90% of Wholesaler Problems

It's a straightforward process:
More deals = more profit = faster growth.


Risks of Paying Too Much for a Property

Overpaying destroys you:

Protect yourself:

Better to lose a deal than lose your shirt.


Customizing Deals to Buyers Without Overpaying

Customize smart:

When you customize, you avoid overpaying and maintain good profit margins.


Legal Considerations for New Wholesalers

Stay compliant:

Talk to a real estate attorney if you’re ever unsure.

Protect your investment portfolio from the beginning.


Final Thoughts: Be the Pro, Not the Problem

Get M.O.B.-minded:

At Property M.O.B., we don’t chase dead deals —we chase cashflow.
Get M.O.B.-minded. Get M.O.B.-paid.


How to Do a Property Inspection

inspector, searching, crime, security, office, protection, information, monitor, guard, privacy, protect, secure, inspector, inspector, inspector, inspector, inspector

Real talk: The inspection period is where many newbie wholesalers fail their deals. They skip it, eyeball it, or ignore red flags that drain their assignment fee. In wholesaling real estate, mastering the M.O.B. method for property inspections keeps your name solid, your buyers happy, and your deals tight.

This isn’t your grandma’s real estate deal. You’re not paying for a full home inspection with a 42-page PDF. In this game, you’ve got 15 to 30 minutes to walk the property, snap every angle, estimate repairs, and decide if this property is a gold mine or a trap.

The role of a property inspector in wholesaling is crucial, providing an in-depth analysis of the property's condition. They identify potential problems affecting the fair market value and deal profitability. Inspectors assess everything from the plumbing system to the home's exterior, ensuring all parties involved understand necessary repairs. This protects both the real estate wholesaler and the end buyer from unexpected costs, ensuring a smooth real estate transaction. Their knowledge can mean the difference between a good deal and one that drains your assignment fee. Knowing when to bring in a property inspector can safeguard your investment and reputation in real estate investing.

While you're not required to hire a home inspector, knowing when to bring in a professional property inspector can save your deal. Their job? To provide a clear-eyed reality check on the condition of the house, from roof to foundation. If you’re still learning or entering a high-stakes deal, a qualified inspector can back up your numbers and protect your income potential. Use them when it counts.

Let’s break down how to handle property inspections like a seasoned wholesaler—and when to tag inthe pros.


What Is a Property Inspection?

In wholesale real estate, the property inspection is a fast, gritty walk-through where you:

Forget clipboards and khakis. You’re there to get the truth and get out.


When Should You Inspect a Property?

Before you write one line of a contract. Always inspect the property before making an offer on distressed properties. This protects your profit, your buyers, and your name in the streets.

And yeah, you can bring a home inspector or licensed appraiser if it’s a big deal or you want backup. But even solo, you better know what to look for. Sellers lie. Problems hide. You dig 'til you find the truth. Discover the truth, that is your job as a real estate investor.

A good inspection also helps you gauge market value, estimate repair costs, and confidently pitch to your real estate investors.


Why the Inspection Matters

Because sellers leave stuff out. Because your real estate investors rely on you to give it to them straight. And because one busted foundation can wipe out your assignment fee and then some.

Inspections keep you honest, help you market wholesale properties with confidence, and avoid getting roasted on your next JV deal.

Want respect from real estate agents, appraisers, and wholesale real estate partners? Show up like a pro, even if you’re just getting started.


Understanding the Inspection Period

Most contracts give you 10–15 days for due diligence. Here’s what goes down:

Use this time to figure out if you’re keeping the deal or walking. And yes—you can renegotiate or back out. That’s what the inspection period is for.

The local real estate market can shift fast—this window is your time to double-check numbers and find the hidden risks.


Two Ways to Play the Seller

1. "I’m the Buyer"

Act like you’re the one buying it. This builds direct trust and keeps the convo tight. It’s clean, fast, and works when you’re confident in your numbers.

2. "We Represent a Group of Investors"

Use this when you’re running point for your team. You’ve got other investors helping verify the deal. This gives you cushion to bring partners through and keeps the door open for renegotiation.

Pro Tip: Sellers don’t care which investor closes—only that someone closes. So show up, be professional, and get it done.


How to Do a Property Inspection the M.O.B. Way

Start Outside

Then Go Inside

All this impacts how much money your deal is worth and what your income potential looks like.


Inspection Etiquette


Photos: Your Secret Weapon

Photos = proof. Photos = marketing. Photos = leverage.

Take clear shots of:

Use them to:

✅ Download the inspection checklist
✅ See an example inspection album


How to Estimate Repair Costs (Without Being a Contractor)

No fancy degree needed, not even a bachelor's degree. Here’s the cheat sheet:

Always round up. Underestimating kills more deals than anything else.

Pro wholesalers know their local real estate market, talk to contractors, and keep a running list of what things cost.


Know the Market, Know Your Role

Do you need a real estate license? No. But you better know your laws. Or someone who does.

Work with pros: certified inspectors, licensed appraisers, solid title companies. You don’t have to know everything—but you need a crew that does.

What matters more than a license? Integrity. Efficiency. Hustle. Be the one who does it right, and everyone will want to do deals with you.


Final Thoughts: Don't Be Sloppy

The property inspection is your firewall. It's how you protect:

Get in, document everything, estimate repairs, and be transparent. That’s how real estate wholesalers separate themselves from amateurs.


🔥 Want access to our deal breakdowns, marketing scripts, and step-by-step wholesaling playbooks?

👉 Grab the Property M.O.B. Total Access Pass and unlock the exact tools used by top wholesalers to scale to six figures and beyond.