MAO (maximum allowable offer)

MAO, or maximum allowable offer, is the highest price an investor can pay for a property and still reach their target profit. The common formula is after repair value times a percentage, often 70%, minus repair costs, minus any wholesale fee.

Last reviewed October 26, 2026 by the Trident team.

What is MAO in real estate?

MAO means maximum allowable offer: the ceiling on what you can pay for a property and still make your target return. Investors work it out before talking price with a seller, so they know where to walk away. For flips and wholesale deals it is usually built from ARV, repairs and a percentage rule.

What is the MAO formula?

The most common formula is MAO = ARV × 70% − repairs. Wholesalers also subtract their assignment fee, so the end buyer still gets their 70% number. The percentage moves with the market and the deal: some investors use 75% to 80% on expensive houses and 65% or less on cheap or slow ones.

Try the MAO calculator.

What is an example MAO calculation?

A Hartford, Connecticut two-family has an ARV of $250,000 and needs $40,000 of repairs. At 70%, MAO is $250,000 × 0.70 − $40,000 = $135,000 for a flipper. A wholesaler targeting a $10,000 fee should offer no more than $125,000, leaving the buyer their margin.

How does Trident handle MAO?

Trident's Deal Command Center shows MAO lanes side by side for flip, wholesale, BRRRR, Subject-To, Novation, Lease Option and Traditional, so you can see which exit supports the highest offer. Plans start at $99 a month with a usage credit included, and every action after that has a published rate.

See pricing for plans and per-use rates, or try Trident for 7 days for $8.

More terms: Skip tracing, ARV (after repair value), Assignment fee, Wholesaling, Subject-to, BRRRR, Pre-foreclosure, Absentee owner, 10DLC, Double close, Novation.

General information, not legal, tax or financial advice.