🌟 Day 12 of the 45-Day Wholesaling Challenge 🌟
Assignment: Analyze Sample Deals
We’re going to break down 3 deals using the MAO formula, step by step!
🔹 Deal 1
- ARV: $400,000
- Repair Costs: $40,000
- MAO: 65% of ARV ($400k) = $260,000Then subtract repair costs: $260k - $40k = $220,000
- Wholesaling Fee: 70% of ARV ($400k) = $280,000Then subtract repair costs and MAO: $280k - $220k = $60,000
🔹 Deal 2
- ARV: $300,000
- Repair Costs: $25,000
- MAO: 65% of ARV ($300k) = $195,000Then subtract repair costs: $195k - $25k = $170,000
- Wholesaling Fee: 70% of ARV ($300k) = $210,000Then subtract repair costs and MAO: $210k - $170k = $40,000
🔹 Deal 3
- ARV: $500,000
- Repair Costs: $50,000
- MAO: 65% of ARV ($500k) = $325,000Then subtract repair costs: $325k - $50k = $275,000
- Wholesaling Fee: 70% of ARV ($500k) = $350,000Then subtract repair costs and MAO: $350k - $275k = $75,000
Keep analyzing deals with this method, and if anything feels tricky, just ask! Also, please remember to use the resources in the Classroom Tab.