Wholesale Deal Calculator

Wholesaling assigns purchase contract from motivated seller to cash buyer for assignment fee.

ARV (after-repair value)

Rehab cost

Investor buyer offer

Seller contract price

Assignment fee

$15,000

Investor MAO check

$110,000

Investor offer % ARV

0.6%

How the math works

Assignment fee = investor offer − seller contract. Investor MAO = ARV × 70% − rehab.

$115k − $100k = $15k assignment fee. Investor at 57.5% ARV; MAO would be $110k.

How to Use

Enter arv (after-repair value).
Enter rehab cost.
Enter investor buyer offer.
Enter seller contract price.
Read assignment fee.

Frequently Asked Questions

Wholesale economics?

Find distressed seller, contract at low price, assign to investor for fee. Typical fee: $5–25k per deal. Process: marketing (mailers, signs, website) → seller call → property visit → offer at MAO (max allowable offer) → contract → marketing to buyers list → assignment closing. MAO formula: ARV × 70% − repairs − assignment fee. Risks: contract assignment legality (regulated in many states), seller disclosure, double-close requirements, license requirements (TX, IL, OH, NC tightening). Volume-driven business, 40–80 mailers per closed deal typical.

How does this debt analysis fit a workout strategy?

Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.

Discounted payoff (DPO) vs forbearance vs deed in lieu?

DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.

Special servicing dynamics?

CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.