Wholesale Real Estate Profits: How Assignment Fees Are Earned and Maximized
Wholesale profits come from the spread between your contract price and what a cash buyer will pay. This guide explains assignment fees, double closes, and the habits that help wholesalers earn more per deal.
What wholesalers search for
Wholesale real estate is a high-volume search.
How wholesale profits are earned
- Assignment fee
- You assign your contract to a buyer, who pays you a fee at closing.
- Double close
- You buy and immediately resell, earning the difference.
- Example
- Contract at $150,000, buyer pays $165,000: a $15,000 spread before costs.
Five ways to maximize wholesale profits
- Buy right. The contract price sets your margin.
- Know your buyers. Match each deal to the buyer who pays most for it.
- Market to several buyers. Competition raises your fee.
- Disclose clearly. Honest deals close and lead to referrals.
- Keep deal flow steady. Daily off-market leads keep the pipeline full.
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Wholesale profits: FAQ
How much do wholesalers make per deal?
It varies widely by market and deal; the key is leaving room for the buyer's profit.
Assignment or double close?
Assignments are simpler; double closes can keep your fee private but cost more.
Do I need to disclose my fee?
Disclosure rules vary by state. Honest disclosure is always the safest practice.
This guide is general information, not legal or tax advice.
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