Joseph V. Scorese's Blog

Follow me
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.
Q - The client has a adjustable rate mortgage. They have been offered a loan modification with a fixed rate for three years. However, at the end of the three-year period the rate will begin adjusting again. Can they refinance at the end of the three-year period and shop for a fixed rate or will t...
Cashflow Worksheet Unit Address: ARV:                                                                                    MDS: Refi (75%-80%):                                                            Taxes: Rent:                                                                                   ...
I met with a developer in regard to this development opportunity. which is located is south west Baltimore City. The development will be about 20 minutes drive from Fort Meade. The development is comprised of 17 lots- 16 semi-detached homes and 1 detached home which can or can not be part of the ...

Joseph V.Scorese

local_phone(267) 455-0520
Contact The Author
Back to the Basics of Flipping or Cash Flowing on a Investment Property When Renovating - Maximum Allowable Offer & After Repair Value.