Free Wholesale Deal Analyzer

Evaluate a wholesale real estate deal by calculating the maximum allowable offer, assignment fee, and end-buyer profit margin.

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Your Maximum Offer to Seller

$180,000

Contract Price to End Buyer$190,000
Your Assignment Fee$10,000
End Buyer Gross Profit$45,000
Offer-to-ARV Ratio60.0%

Your Maximum Offer to Seller vs After-Repair Value (ARV)

Wholesale Deal Analysis

Wholesaling involves getting a property under contract at a low price and assigning the contract to an end buyer for a fee, without ever purchasing the property yourself.

Formula

Max Offer = ARV - Rehab Cost - End Buyer Profit - Selling Costs - Assignment Fee

Key Concepts

  • Assignment Fee: Your profit, typically $5,000 to $20,000 per deal
  • End Buyer Profit: The flipper or investor needs enough margin, usually 15-20% of ARV
  • Selling Costs: Commissions, closing costs, and holding costs, typically 8-12% of ARV
  • The deeper your discount, the easier the deal is to assign
  • Making the Numbers Work

    If the max offer is too low for the seller to accept, the deal does not work for wholesale. Not every property is a wholesale candidate.

    Example Calculation

    A property with $300,000 ARV needs $35,000 in rehab. The end buyer wants 15% profit and selling costs are 10%. You want a $10,000 assignment fee.

    1. 01End buyer desired profit: $300,000 x 15% = $45,000
    2. 02Selling costs: $300,000 x 10% = $30,000
    3. 03Max end buyer price: $300,000 - $35,000 - $45,000 - $30,000 = $190,000
    4. 04Your max offer to seller: $190,000 - $10,000 = $180,000
    5. 05Offer-to-ARV ratio: $180,000 / $300,000 = 60.0%

    Frequently Asked Questions

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