Offlinehave a partner who works with a group of investors looking for rental properties nationwide. Properties must be in good working class neighborhoods, not war zones. The investor's investment must cover all costs and the MAO is to be no more than 40% of current market value. The key criterion is the rental yield which must be 25% or more.
What is a MAO?
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Gerard,
MAO stands for maximum allowable offer. I am involved with investors in the PA area and this is what they use to make offers. Basically after figuring what the fix up costs, closing costs, etc, they will calculate what is the max offer they can goto. These investors want to fix a property up, rent or sale it,if rent they will get a tenant and cash flow a property. Then go thru the refinance part to pull thier money out for the next deal. When they finance the deal thru a bank and plan to hold for cash flow, the plan normally is to get a commercial loan.
Evan
Perseverance is the key!
Good information to know! @echriston: do the investors, you're involved with, base their MAO off of the FMV or ARV?
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
Maximum Allowable Offer, thanks for sharing. Did not have a clue.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
I learned something today and there's alot of abbreviations for the terms in this business. Thanks again !!
Warm regards,
Paul T. La Moy
Atlcamel,
That is based on the after repair value of the property. Remember some hard money lenders will not lend below 50,000 value after repaired.
Perseverance is the key!
Also note that when an investor is figuring thier MAO, they will also include a 10 to 15,000 or more profit from the refiance after paying for repairs and closing costs.
Perseverance is the key!
too also know for future deals. Thxs
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
If you ever a question about acronyms (like "MAO") see the glossary for the answers:
http://www.deangraziosi.com/node/3208
I just copied and pasted them to my word pad and use them as reference that way If I need them asap I have them right their.
you never know until you find out...