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Mortgage and Lending - Firstrust Bank - 391784
MAO Worksheet Property Address: ARV: *Costs (30%): Repairs: MAO: Starting MAO (-15%): Formula: ARV – 30% – Repairs = MAO Terms: ARV – After Repair Value. This number is derived from Comps, CMA’s, and other appraisal tools. Costs – These are the costs to get into (and sometimes out of) the property. The table below depicts the cost breakdown. Costs are as follows: Buying Costs (3%) Carrying Costs (3%) Closing Costs (3%) Margin Of Error (1%) Equity Or Profit (20%) Repairs – These are the estimated repairs. Use the supplied Rehab Worksheet to get your initial estimate. MAO – Maximum Allowable Offer. This is the theoretical maximum you can pay and NOT leave any of your money in the deal after refinancing. This is NOT a requirement to do a deal, however what is acceptable to leave in will be different for everyone depending on your own cash flow and financial ability. Starting MAO – Get this number by subtracting another 15% from your MAO. This is a decent starting point to begin your negotiations. If you get no counter offers at starting MAO, you will need to increase your initial offer. Market conditions will always impact starting MAO.
Confessions of a Subprime Lender: 3 Bad Loans by Les ChristieThursday, July 17, 2008provided by In his new book, author and ex-lender Richard Bitner owns up to some of...
MAKING THE SHIFT FROM RESIDENTIAL HOW TO PURCHASE COMMERCIAL REAL ESTATE   The key to success is presenting deals that make sense.   Typical scenarios include; Purchase, and Refinance, Acquire and Development. Business Loans, business purchase, finance, factoring of receivables, and equipment le...
Seeking like minded investors taking a nationwide approach in addressing the questions or concerns of a investor without it costing them large sums of monies at Boot Camps, Workshops, etc. A Blog to hopefully help all groups prosper from the Loan Officer, Reatltor and the Investor.

Joseph V. Scorese

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Back to the Basics of Flipping or Cash Flowing on a Investment Property When Renovating - Maximum Allowable Offer & After Repair Value.