All Forum Posts by: Curtis Daniels

I thought more investors would be initiated to the MAO formula. Again: http://thebaltimoreinvestor.wordpress.com/2008/05/28/the-maximum-allowable-offer-formula-mao/

What is .017 and what is the 59 rent multiplyer? lol.

MAO is Maximum allowable offer. That formula is .65 x After repair value - repairs and/or wholesaling fee.

I have a real estate wholesaling coach that tells me that ROI return on investment is most important when gauging what price our buyers would buy at. The formula is

The Rent x 12years x .65 Divided by the ALL IN amount (that includes repairs).

If you come out with over a 20% return, then he says we're at a decent area to sell to those wanting to rent out the house. This seems very different than all the real estate books and information I've read about the MAO formula. Why is that so?

In St. Louis Missouri, it seems that there are a lot of people buying rental property over fixing and flipping. It seems like there are many investors that don't even accept houses with a good return, they want steals with a 30 or 40% ROI! Can anyone explain to me why my coach is doing ROI vs MAO? He seems to not even explain why he does MAO at all.

@Dave Savage - You're not giving credence to my initial post because I did not at all say that I was looking for money. I was only saying that based off my relationships with agents, I was expected to get compensated.

How would a non-financeable be better to wholesale?

Test 2 @Curtis Daniels

This is a test

@Ted Schmidt - Honestly I give free leads and expect kick back at closing.

@Onan Dumas- I suppose I'll read the state laws and then make my decision of my compensation.

Good call. I'm definitely expected to get some cash in exchange.

I've been getting a ton of leads lately, and sometimes they're from people who wouldn't accept my offer for certain reasons or just owe too much on their mortgage. Should I pass of my leads to Real Estate agents who accompany me with comps and etc? Would it build good report with them or do you feel these leads would be worthless to them?

Oh nice. I'll keep that in mind. I do not have direct MLS access because I'm not a Realtor, or a Realtor's assisstant, but I am have a strong network of Realtor buddies though. Keep up the good work John.