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Updated over 8 years ago,
MAO for Cash Flip Vs Creative Finance Flip
I had thought that when I go out on offer presentations that depending on the deal, I might be able to offer a variety of situations for the seller but determining the MAO between the two has been a challenge.
1) Cash close quickly- which would be a lower offering price if I was using my own money to both purchase and fix
2) Creative Way(Subject To's, LO, Seller Finance) Which the seller would get more at closing since I am only using my money to do the repairs, some holding cost etc.
For now, I am mainly interested in using these terms to FLIP so my question
Is there a rule of thumb or % ones uses to determine a MAO using these scenarios?
The value that is hard to quantify if I use scenario 2 is not using any of my resources except to do the repairs