What position does a new wholesaler begin with? The LAO or the MAO? What to do when the LAO feels too uncomfortable to present to the seller and it could possibly kill negotiations? And is it good to risk assignment fees to get the first contract under the belt, using MAO? Just some things I’m wrestling with as a beginner.. 😵
Solved
LAO vs. MAO
Best answer by Peter Osmanski
You have some good advice up above. My two cents is get their price as soon as possible, what they say doesn’t really matter. What it does is allow you to start digging into motivation. If they won’t give a price use that to dig, “seem like you have had some bad experiences…” And move to motivation. More important than finding the right offer is understanding why you are even having the conversation. The truth is rarely going to be the first reason stated for selling. There may be circumstances that make a perfectly valued LAO or MAO unfeasible because those numbers are going to vary depending on the exit strategy anyway. You have to know what problem really needs solving.
Maine
+2I'm sure we have experts here who may have something relevant to tell you,
Always start with your lowest allowable offer, never lead with the maximum allowable offer. Your first offer should almost make the seller uncomfortable because that’s how you find their true bottom line and give yourself room to negotiate up if needed.
If you're new, you need that margin. It covers any underwriting mistakes and gives you breathing room to still make a profit. Using your maximum allowable offer upfront might get the contract, but you’ll have no room left for dispo and that first deal could fall apart or cost you.
Get used to being uncomfortable now because the faster you lean into it, the faster it turns into confidence. And confidence is what gets you contracts that actually make you money.
Ruben
+1
EXACTLY: CASH OFFER (LAO) —→ NOVATIONS (MAO) END GAME
But don’t overlook the in-between exit strategies that allow you to squeeze a little more profit at each stage of the process.
✅ Assignments
✅ Wholetail
✅ Double Close
✅ Retail Listings with/without Tenant Buyers
✅ Seller Finance / Wraps (if you gain control)
Each step is a tool—know when to use which one based on the condition, demand, and seller’s motivation.
Dispo Money Mike
EXACTLY: CASH OFFER (LAO) —→ NOVATIONS (MAO) END GAME
But don’t overlook the in-between exit strategies that allow you to squeeze a little more profit at each stage of the process.
✅ Assignments
✅ Wholetail
✅ Double Close
✅ Retail Listings with/without Tenant Buyers
✅ Seller Finance / Wraps (if you gain control)
Each step is a tool—know when to use which one based on the condition, demand, and seller’s motivation.
Always be wise enough to listen when knowledge is speaking--From my mother
Maine
+1You have some good advice up above. My two cents is get their price as soon as possible, what they say doesn’t really matter. What it does is allow you to start digging into motivation. If they won’t give a price use that to dig, “seem like you have had some bad experiences…” And move to motivation. More important than finding the right offer is understanding why you are even having the conversation. The truth is rarely going to be the first reason stated for selling. There may be circumstances that make a perfectly valued LAO or MAO unfeasible because those numbers are going to vary depending on the exit strategy anyway. You have to know what problem really needs solving.
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