One of the most common questions from our MREIA group is how do we determine the property’s value so we don’t pay too much? By paying too much would prevent the investor from making any money on the deal. Most investors want the deal to be a win-win-win for everyone involved in the transaction:
- Win for Seller,
- Win for the Investor,
- Win for the Buyer that purchases
the asset after it has been repaired.
The Maximum Allowable Offer MAO rule allows the investor to determine the property’s value so the transaction will be a win-win-win deal. It creates a maximum ceiling price for the investor. Go passed the ceiling and you won’t make money. It is always said among Real Estate Investors, "You Make Money on the property when you purchase it, not when you sell it."
Below is a brief video that explains how the MAO rule is processed and how the derived number is of value to the Real Estate Investor:
| Written by +Bob Burns. |
 | "You are the Message" MREIA's President about.me/RobertKBurns Telephone #: 305-586-5280 email: sec8@planocho.com MREIA's Web Page: www.miamireia.com |
