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Wholesale Profit Calculator
Calculate your actual take-home profit on a wholesale assignment deal after accounting for earnest money, closing costs, and marketing expenses. Most wholesalers focus on the gross assignment fee but forget the costs that eat into it.
Typically $0 for assignments -- buyer pays closing costs
Refundable deposit held during the contract period
Skip tracing, email blasts, driving, photos, etc.
What costs do wholesalers actually pay?
Assignment deals are low-cost compared to flipping, but they're not free. Here are the typical expenses:
- Earnest money deposit: $500-$2,000 per deal, refundable if you back out during the option/inspection period. Not a cost if the deal closes, but it's capital tied up.
- Option fee (Texas): $100-$500, typically non-refundable but credited toward purchase price. This is a real cost if you don't close.
- Closing costs: As the assignor, you typically pay $0 in closing costs -- the buyer pays these. In some cases you may pay $200-$500 for your portion of title fees or doc prep.
- Marketing costs: Skip tracing ($0-$50 per deal if included in your subscription), property photos (your time or $50-$150 for professional), and buyer outreach (email/SMS costs).
- Acquisition marketing: The cost of finding the deal in the first place -- direct mail ($0.50-$1.50/piece), cold calling ($0.03-$0.05/minute), driving for dollars (gas + time). This is your biggest ongoing expense.
Maximizing your assignment fee
The assignment fee is the gap between your contract price and what the buyer pays. To maximize it:
- Negotiate a lower contract price. Every dollar you save on the purchase side is a dollar added to your fee. Know the MAO before you negotiate.
- Find the right buyer. Different buyers have different MAOs. A cash buyer with low costs of capital can pay more than a hard-money borrower. Target buyers who buy in the area, at the price point, and with the strategy that maximizes the price they'll pay.
- Present a professional package. A well-documented deal with comps, repair estimates, and margin analysis commands a higher price than a text message with an address. Investors pay more when they trust the numbers.
- Create competition. Send the deal to multiple qualified buyers simultaneously. If two buyers want the same property, you have leverage.
Related tools
- MAO Calculator -- determine the maximum price your buyer will pay
- ARV Calculator -- establish the after repair value
- Rehab Cost Estimator -- estimate repair costs for your deal package
- How to Wholesale Real Estate