Free Wholesale Deal Calculator
Analyze a wholesale real estate deal by calculating the assignment fee and verifying the deal leaves enough profit for the end buyer.
Your Assignment Fee
$10,000
Your Assignment Fee vs After Repair Value (ARV)
Wholesale Real Estate Deals
Wholesaling involves getting a property under contract at a low price and assigning the contract to an end buyer (flipper or landlord) for a fee.
How It Works
1. Find a distressed property below market value 2. Get it under contract with the seller 3. Find an end buyer willing to pay more 4. Assign the contract for an assignment fee
The Assignment Fee
Your profit is the difference between your contract price and the end buyer's price. Typical wholesale fees range from $5,000 to $20,000 per deal.
Making the Deal Work for Everyone
The deal must leave enough profit for the end buyer. Use the 70% rule: the end buyer's total cost (purchase + rehab) should not exceed 70% of ARV to ensure adequate profit margin.
Example Calculation
ARV $300,000, rehab $40,000. Contract price $160,000, assignment fee $10,000. End buyer faces 12% closing/holding costs.
- 01End buyer purchase price: $160,000 + $10,000 = $170,000
- 02End buyer closing/holding: $300,000 x 12% = $36,000
- 03End buyer total cost: $170,000 + $40,000 + $36,000 = $246,000
- 04End buyer profit: $300,000 - $246,000 = $54,000
- 05End buyer ROI: $54,000 / $246,000 = 22.0%
- 06MAO at 70%: $300,000 x 70% - $40,000 = $170,000
- 07Your assignment fee: $10,000