Wholesale Deal Calculator.

The 70% rule states that an investor should pay no more than 70% of a property's after-repair value (ARV) minus repair costs. This leaves a 30% margin to cover holding costs, closing costs, and profit. It's the most widely used formula for calculating a Maximum Allowable Offer in wholesale real estate.

MAO = ARV x Discount Rate - Repair Costs - Your Assignment Fee. For example, on a $350,000 ARV property with $30,000 in repairs and a $10,000 assignment fee: $350,000 x 70% - $30,000 - $10,000 = $205,000 MAO.

70% is the industry standard, but it varies by market and deal type. In competitive markets, investors may accept 75-80% of ARV. In distressed or rural markets, 60-65% is common. The slider in this calculator lets you adjust between 50-85% to model different scenarios.

Equity tiers classify a property by its loan-to-value (LTV) ratio. Free & Clear and High Equity (LTV under 50%) properties work best for seller financing and traditional wholesale. Moderate Equity (50-80% LTV) suits traditional wholesale. Low Equity and Underwater (80%+ LTV) require creative structures like subject-to. Knowing the equity tier before you call tells you which offer to lead with.

The mortgage balance determines how much equity the seller has. A seller with $100,000 in equity on a $350,000 property has very different options than one who owes $300,000. Equity position dictates whether you can wholesale traditionally, offer seller financing, or need to structure a subject-to deal. This calculator shows you the equity tier and recommended strategy when you enter the mortgage balance.