What's a typical wholesale assignment fee?

Most US markets: $5,000 to $15,000 per assignment. Hot markets (Texas, Florida, parts of the Southeast) routinely see $10-25k. Coastal CA can hit $30-50k on bigger deals. Below $5k usually isn't worth the time. Above 10% of the contract price often gets the end buyer's analyst to push back.

Should I use 70%, 65%, or 75% for the end-buyer percentage?

Depends on the end buyer's strategy and the market. 70% is the BiggerPockets / J Scott convention and works in most markets. Conservative flippers in soft markets want 65%. Tight markets with rapid appreciation tolerate 75%. Ask your end buyer what their actual buy-box is before you build deals around an assumption.

How accurate does my ARV need to be?

Very. Each $10k of optimistic ARV translates to $7k extra MAO at the 70% rule. End buyers run their own comps; if yours is wishful they'll walk and you'll lose the deal. Pull 3-5 sold comps within 0.5 miles, last 6 months, similar property type and finish level. Take the median. Discount 5-10% for appraisal risk.

Can I wholesale a property I don't have under contract yet?

Legally murky to advertise it as for sale before you have an equitable interest. Most states require either a signed contract (giving you equitable interest) or a real estate license to market property for sale. 'Reverse wholesaling' — building your buyer list first, then sourcing deals to match what they want — is a cleaner workflow.

What if the end buyer wants to negotiate the assignment fee down?

Common. Your spread below MAO is your negotiation room. If you're offering $110k on a $135k MAP and asking $15k fee = $125k all-in to end buyer (under MAO), you have $10k of headroom before you hit MAP. Drop fee to $10k = end buyer pays $120k. That extra $5k of margin often closes deals. The calc above shows your headroom in real time.

Should I build a buyer list before sourcing deals?

Yes — this is the single biggest accelerator. With a list of 50-100 active flippers/BRRRR investors organized by buy-box (price range, neighborhoods, beds/baths preference), you can match a new contract to a likely end buyer in hours instead of weeks. Most successful wholesalers spend their first 60 days building the buyer list, not chasing deals.

Wholesale MAO Calculator

Wholesaling works backwards: start with what your end buyer (a flipper or BRRRR investor) can pay, subtract your assignment fee, and that's the most you can offer the seller. This calc handles the right-to-left math and warns you when your offer leaves no margin for the end buyer.

The end buyer's view

ARV (after-repair value)

Median of 3-5 recent comps.Rehab budget

What the end buyer needs to spend.End buyer's ARV %

70 = standard. 65 conservative. 75 hot market.

Your offer

Contract offer to seller

What you're offering the seller.Your assignment fee

What you'll charge the end buyer.

Verdict

Strong deal — room to negotiate

Your contract is comfortably below MAO. You have flexibility to lower fee or absorb a buyer push-back and still close.

Wholesaler MAO

$125,000

Max you can offer the seller

End buyer's MAP

$135,000

= ARV × 70% − rehab

Spread below MAO

$15,000

Negotiation room

End buyer pays

$120,000

= your offer + your fee

End buyer margin

$15,000

MAP minus what they pay

Offer as % of ARV

44.0%

Lower = better margin

Math, step by step

ARV	$250,000
× End buyer ARV % (70%)	$175,000
− Rehab	−$40,000
= End buyer's max purchase price	$135,000
− Your assignment fee	−$10,000
= Wholesaler MAO	$125,000

At your contract price of $110,000, you could actually charge up to $25,000 as your fee before the end buyer hits their MAP.

The 70% rule, the wholesaler's anchor

Flippers and BRRRR investors typically pay no more than 70% of ARV minus rehab. That ratio leaves them margin for holding costs, selling costs, closing costs, and profit. In tight markets they may stretch to 75%; in soft markets or for tougher rehabs they want 65%. The calc above defaults to 70% but lets you tune it for your specific end buyer.

End buyer's MAP = ARV × end-buyer % − rehab. Your MAO = end-buyer MAP − your assignment fee. That's the most you can offer the seller and still expect to assign the contract for your full fee.

Why deals don't close

New wholesalers tend to fail in one of two predictable ways:

Offering too high. You contract a property at $130k when MAO is $120k. You can't find an end buyer willing to pay your asking + your fee, so you either eat the spread (your fee shrinks) or you assign at a loss / fall out of contract.
Optimistic ARV. You used the highest comp you could find. End buyer's analyst pulls more conservative comps, lowers ARV, recomputes MAO, and walks. Use the median of 3-5 comps within 0.5 miles, sold in the last 6 months, similar bed/bath/sqft. Discount 5-10% for appraisal risk.

What this calc deliberately doesn't model

Double closings vs assignments. The math is the same; double closings just add ~$1-3k in closing costs that you (the wholesaler) absorb.
Earnest money risk. Most wholesale contracts include an inspection contingency that protects you. Still, never wholesale with non-refundable EMD until you have a real end buyer signed.
State-specific licensing. Some states (Illinois, Oklahoma, Pennsylvania, Texas) have started cracking down on unlicensed wholesaling. Check local rules.

Frequently asked questions

What's a typical wholesale assignment fee?
Most US markets: $5,000 to $15,000 per assignment. Hot markets (Texas, Florida, parts of the Southeast) routinely see $10-25k. Coastal CA can hit $30-50k on bigger deals. Below $5k usually isn't worth the time. Above 10% of the contract price often gets the end buyer's analyst to push back.
Should I use 70%, 65%, or 75% for the end-buyer percentage?
Depends on the end buyer's strategy and the market. 70% is the BiggerPockets / J Scott convention and works in most markets. Conservative flippers in soft markets want 65%. Tight markets with rapid appreciation tolerate 75%. Ask your end buyer what their actual buy-box is before you build deals around an assumption.
How accurate does my ARV need to be?
Very. Each $10k of optimistic ARV translates to $7k extra MAO at the 70% rule. End buyers run their own comps; if yours is wishful they'll walk and you'll lose the deal. Pull 3-5 sold comps within 0.5 miles, last 6 months, similar property type and finish level. Take the median. Discount 5-10% for appraisal risk.
Can I wholesale a property I don't have under contract yet?
Legally murky to advertise it as for sale before you have an equitable interest. Most states require either a signed contract (giving you equitable interest) or a real estate license to market property for sale. 'Reverse wholesaling' — building your buyer list first, then sourcing deals to match what they want — is a cleaner workflow.
What if the end buyer wants to negotiate the assignment fee down?
Common. Your spread below MAO is your negotiation room. If you're offering $110k on a $135k MAP and asking $15k fee = $125k all-in to end buyer (under MAO), you have $10k of headroom before you hit MAP. Drop fee to $10k = end buyer pays $120k. That extra $5k of margin often closes deals. The calc above shows your headroom in real time.
Should I build a buyer list before sourcing deals?
Yes — this is the single biggest accelerator. With a list of 50-100 active flippers/BRRRR investors organized by buy-box (price range, neighborhoods, beds/baths preference), you can match a new contract to a likely end buyer in hours instead of weeks. Most successful wholesalers spend their first 60 days building the buyer list, not chasing deals.