The Maximum Allowable Offer Formula

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You’re negotiating with a seller. His price is too high. Your price is too low. You’re hungry for a deal. What do you do? Do you just give in and pay the seller what he’s asking? What happens to your bank account in situations like this? Does it suffer?

Knowing your limit on the offer is essential to creating and sustaining a profitable real estate business. Newbies make the mistake all the time of paying more than they should for a house in hopes that they can make a few bucks.

The better strategy is to KNOW YOUR NUMBERS before you ever enter into negotiations with the seller, and know when to stop. You should never pay more than MAO [Maximum Allowable Offer] and this course will teach you why.

Supplemental Links:

MAO Cheat Sheet

Closing Cost Estimator : (open in GDrive and then click on File, MAKE A COPY in order to edit the spreadsheet)

Rehab Estimator Tool: (use the email address on file with the MOB to access)

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