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Wholesale Assignment Profit Calculator

A wholesaler contracts to buy a property below market, then assigns the contract to an end-buyer for an assignment fee. Net profit = assignee price − contract price − marketing cost − holding cost. This calculator sizes the real take-home on a wholesale deal.

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Net assignment profit

$22,550

Gross assignment fee

$25,000

Total costs (marketing, title)

$2,450

Margin as % of assignee price

10.74%

Annualized ROI on earnest money

39194%

How the math works

$210K assignee − $185K contract = $25K gross fee. Minus $2,450 marketing + title = $22,550 net profit. Annualized on $1,000 earnest money held 21 days: ~39,000%. Very high per-dollar return when clean deals land.

Reality: only 1 in 5-10 lead contacts yield a contract, and only 70-80% of contracts close. Marketing cost to find the deal and buyer should reflect the real funnel, not just this one deal. Run P&L on aggregate deals, not single transactions.

How to Use

  1. Enter contract price and assignee price.
  2. Add earnest money, marketing cost, and any holding period interest.
  3. See assignment fee, net profit after costs, and margin.

Frequently Asked Questions

Is wholesaling legal?

Yes everywhere in the US for contract assignment. Recent state laws (OK, IL, SC) require wholesaler licensure or disclosure. Avoid double-closings without full disclosure; they can cross into dealer-licensure territory and get messy.

What's a typical assignment fee?

$5K-$15K for single-family residential in most markets. $15K-$50K for underpriced class B/C deals. Hot markets / multi-family / commercial can hit $50K-$250K. Fee depends on discount to market, not any standard 'markup' formula.

What goes wrong most?

(1) End-buyer walks — wholesaler needs a backup or eats earnest money. (2) Contract doesn't assign (non-assignable clause missed). (3) Seller finds out true resale price and refuses to close. Always disclose role, use assignment-enabled contract language.

Is earnest money at risk?

Yes. If neither you nor an assignee closes, seller can keep your earnest money ($500-$10K common). Best practice: $500-$1,000 earnest money only, or contract with specific out clauses (inspection contingency, financing contingency even if cash).

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