Wholesale Deal Calculator
Calculate wholesale real estate deals, assignment fees, and maximum offer prices.
Property Analysis
Buyer Requirements
Your Max Offer to Seller
$109,000
Deal Summary
Deal Flow
70% Rule Price: $115,000 (buyer's max)
After Your Fee: $105,000 (your max offer)
Your offer is $4,000 above the 70% rule
- • Assignment fees of $5K-$15K are common; higher in hot markets
- • Always have a buyer's list before putting properties under contract
- • Leave room for negotiation - start lower than your max offer
- • Include assignment clause in your purchase contract
Related Calculators
About This Calculator
The Wholesale Deal Calculator analyzes real estate wholesale opportunities and calculates your Maximum Allowable Offer (MAO) and assignment fee potential. As of 2025, the average wholesale assignment fee nationwide is $13,000, with experienced wholesalers earning $15,000-$20,000 per deal (Real Estate Bees). With investors now representing approximately one-third of all single-family home purchases and 65% of U.S. housing stock over 30 years old, the wholesale market offers significant opportunity for those who understand deal analysis. This calculator helps you structure deals where you profit while leaving enough margin for your end buyer to succeed—the foundation of sustainable wholesaling.
How to Use the Wholesale Deal Calculator
- 1Enter the After-Repair Value (ARV) based on 3-5 comparable sold properties within 0.5 miles and similar square footage—this is the most critical number in your calculation.
- 2Input estimated repair costs by walking the property with a contractor or using detailed per-square-foot estimates for each repair category (roof, HVAC, kitchen, etc.).
- 3Set your target assignment fee based on the 50% rule—your fee should not exceed 50% of what your end buyer expects to profit.
- 4Choose your investor percentage (typically 70% for flippers, 75-80% for landlords with lower profit requirements).
- 5Review your Maximum Allowable Offer (MAO)—this is the highest price you can pay the seller while leaving room for your fee.
- 6Verify the deal structure shows adequate profit for your end buyer—aim for at least $25,000-$30,000 buyer profit on sub-$300K properties.
- 7Document your analysis to share with potential buyers, including your ARV comps, repair breakdown, and all calculations.
The Wholesale Formula Explained
The core wholesale calculation builds on the 70% Rule with your assignment fee factored in:
Your MAO = (ARV × Investor %) - Repairs - Your Assignment Fee
Standard Example (70% Rule):
| Component | Amount |
|---|---|
| After-Repair Value | $250,000 |
| Investor Multiple | ×70% = $175,000 |
| Less: Repair Costs | -$35,000 |
| Less: Your Assignment Fee | -$12,000 |
| Your MAO to Seller | $128,000 |
What Your Buyer Gets:
| Component | Amount |
|---|---|
| Purchase Price (from you) | $140,000 |
| Plus: Repairs | +$35,000 |
| Total Investment | $175,000 |
| After-Repair Value | $250,000 |
| Gross Margin | $75,000 (30%) |
| Less: Holding, Closing, Commissions (~10%) | -$25,000 |
| Net Profit | $50,000 |
Why 70% Works:
- 10% for closing costs (buying and selling)
- 6% for holding costs (6 months at ~1%/month)
- 6% for sales commission
- 8% for profit margin
- Total: 30% cushion
Assignment Fee Benchmarks by Market
Assignment fees vary significantly by location, property value, and deal complexity. Here's what wholesalers are actually earning in 2025:
Average Fees by State (Real Estate Bees):
| Region/State | Average Fee | Notes |
|---|---|---|
| North Carolina | $22,000 | Highest in nation |
| Georgia | $22,000 | Strong investor activity |
| Texas | $18,000 | High volume market |
| Florida | $16,000 | Competitive market |
| California | $15,000 | High ARVs, thin margins |
| Ohio | $12,000 | Midwest average |
| Arizona | $5,000 | Lowest in nation |
| National Average | $13,000 | Across all markets |
Fee Calculation Methods:
- Fixed Amount: Most common—negotiate a flat fee regardless of deal size
- Percentage Method: 5-10% of the purchase price (e.g., $250K × 8% = $20K)
- Profit Split Rule: Up to 50% of buyer's projected profit (if they'll make $40K, take up to $20K)
Fee Optimization Strategy:
- Start with the 50% rule to set your maximum
- Reduce to ensure buyer sees minimum $25K profit
- Factor in local competition—too many wholesalers = lower fees
- Premium fees for turnkey buyer packages (contractor bids, title work done)
2025-2026 Wholesale Market Conditions
The wholesale market is evolving with new opportunities and regulatory changes:
Market Fundamentals:
- Median home price: $435,495 (Redfin September 2025)
- Inventory: 2.06 million homes (+8.6% year-over-year)
- 65% of U.S. housing stock over 30 years old—prime wholesale targets
- Investor purchases: ~33% of single-family transactions
- Foreclosure filings: Up 2% YoY
Distress Drivers Creating Opportunities:
- Non-mortgage costs (insurance, taxes, utilities) up 30% in 2025
- Southern and Midwestern states seeing highest mortgage delinquencies
- Property tax and insurance spikes creating motivated sellers
- Aging housing stock requiring updates most owners can't afford
2026 Legislative Changes (PropPipeline):
| State | Law/Bill | Effective Date | Requirement |
|---|---|---|---|
| Connecticut | HB 7287 | July 1, 2026 | DCP registration required |
| Maryland | 2025 Act | Jan 2026 | Enhanced disclosures |
| Pennsylvania | 2025 Act | 2026 | Licensing considerations |
| Tennessee | 2025 Act | 2026 | Disclosure requirements |
| Oklahoma | 2025 Act | 2026 | Stricter regulations |
| North Dakota | 2025 Act | 2026 | New wholesaling rules |
2026 Volume Forecast: Colliers projects 15-20% increase in real estate transaction volume as institutional capital returns and mortgage rates stabilize.
Finding Wholesale Deals: Acquisition Strategies
Successful wholesalers use multiple marketing channels to find distressed properties and motivated sellers:
Lead Generation Methods by Cost & Effectiveness:
| Strategy | Cost/Month | Leads/Month | Close Rate | Cost/Deal |
|---|---|---|---|---|
| Driving for Dollars | $50 (gas) | 20-40 | 2-3% | $200-400 |
| Cold Calling | $200-500 | 100-200 | 1-2% | $250-500 |
| Direct Mail | $2,000-5,000 | 50-100 | 1-2% | $1,500-3,000 |
| PPC/Google Ads | $3,000-10,000 | 30-60 | 3-5% | $2,000-5,000 |
| SEO/Website | $500-1,500 | 10-30 | 5-8% | $1,000-2,500 |
| Networking/Referrals | $100-300 | 5-15 | 10-15% | $500-1,000 |
Motivated Seller Lists to Target:
- Pre-Foreclosure/NOD: 90+ days behind, motivated to avoid foreclosure
- Probate: Heirs often want fast sale, not maximum price
- Tax Delinquent: Property tax liens signal financial distress
- Absentee Owners: Out-of-state landlords tired of management
- Code Violations: Owners can't afford repairs, want out
- Divorce Filings: Court-ordered sales often need speed
- High Equity + Long Ownership: Paid-off homes owned 20+ years—flexible on price
Driving for Dollars Indicators:
- Overgrown lawn/landscaping
- Boarded windows or visible damage
- Multiple newspapers/packages accumulated
- Peeling paint or deteriorating exterior
- Estate sale signs or moving trucks
- Code violation notices posted
Building and Managing Your Buyers List
Your buyers list is your wholesale business's most valuable asset. Quality matters more than quantity:
Ideal Buyer Profile:
| Characteristic | Why It Matters |
|---|---|
| Cash or proof of funds | Closes quickly, no financing contingency |
| Closes 2+ deals/year | Experienced, knows what they want |
| Specific buy box | Clear criteria = faster decisions |
| Responds within 24 hours | Won't let deals go stale |
| Honors commitments | Protects your seller relationships |
Where to Find Buyers:
- REIA Meetings: Local real estate investor associations
- Facebook Groups: "[City] Real Estate Investors"
- Foreclosure Auctions: Bidders are active buyers
- Property Records: Recent cash purchases indicate investors
- Hard Money Lenders: They know active flippers
- Title Companies: See who's doing volume
Buyer List Management:
Tier System:
- A Buyers (5-10): Close 80% of deals, respond immediately, proof of funds verified
- B Buyers (10-20): Close some deals, respond within 48 hours, reliable
- C Buyers (50+): Broadcast list, occasional closings, backup options
Information to Collect:
- Property types (SFR, multi-family, commercial)
- Geographic areas and zip codes
- ARV range (min and max)
- Condition preference (light rehab, gut job, etc.)
- Purchase speed (24 hours, 1 week, etc.)
- Funding source (cash, hard money, conventional)
Keeping Buyers Engaged:
- Send deals consistently, even if not A+ quality
- Be honest about deal strengths and weaknesses
- Provide detailed packages: photos, comps, repair estimates
- Follow up on every offer—why did they pass?
Assignment vs Double Closing
Choose your exit strategy based on deal structure, fee size, and seller/buyer preferences:
Assignment Pros and Cons:
| Advantages | Disadvantages |
|---|---|
| No need for funding | Buyer sees your profit |
| Single closing = lower costs | Some sellers won't allow |
| Faster execution | Some end lenders don't allow |
| Simpler paperwork | Can cause renegotiation attempts |
Double Close Pros and Cons:
| Advantages | Disadvantages |
|---|---|
| Hides your assignment fee | Need transactional funding |
| Works when assignment restricted | Two sets of closing costs |
| More professional appearance | Takes longer to execute |
| Avoid buyer/seller fee disputes | More paperwork |
When to Use Each:
Use Assignment When:
- Fee is reasonable ($5K-$15K on typical deals)
- Seller and buyer don't know each other
- End buyer is experienced investor
- Transaction is straightforward
Use Double Close When:
- Fee exceeds $20K (might cause buyer pushback)
- Seller explicitly prohibited assignment
- End buyer using conventional financing
- Dealing with REO/bank-owned properties
- You want privacy on your profit
Transactional Funding Costs:
- Typical rate: 1-2% of purchase price
- Example: $150K purchase × 1.5% = $2,250
- Same-day funding available from specialty lenders
- Must close B-C transaction same day or within 24-48 hours of A-B
Contract Language:
- For Assignment: "Buyer, and/or assigns, agrees to purchase..."
- For Double Close: Standard purchase agreement, no assignment clause
Common Wholesale Deal Killers
Avoid these mistakes that destroy wholesale deals:
#1: Inaccurate ARV (Most Common)
- Using Zillow estimates instead of actual sold comps
- Comparing dissimilar properties (different beds/baths/sqft)
- Using active listings instead of closed sales
- Not adjusting for condition, location, or lot size
- Fix: Always use 3-5 sold comps within 0.5 miles, similar sqft (±20%), closed within 90 days
#2: Underestimated Repairs
- Not walking property with contractor
- Missing major systems (roof, HVAC, foundation, electrical, plumbing)
- Forgetting permits, dumpsters, and labor premiums
- Fix: Use detailed rehab estimate sheet, add 15% contingency
#3: Overpriced Assignment Fee
- Taking more than 50% of buyer's projected profit
- Not adjusting for local market conditions
- Pricing yourself out of deals
- Fix: Calculate buyer's profit first, then set your fee
#4: Poor Contract Terms
- Insufficient inspection period (need 14-21 days minimum)
- No assignment language in contract
- Earnest money you can't recover if deal falls through
- Fix: Use investor-friendly contracts reviewed by RE attorney
#5: Title Issues
- Liens, judgments, or clouds on title
- Ownership disputes or missing heirs
- Recent transfers suggesting fraud
- Fix: Always pull title search before going firm
#6: Unmotivated Seller
- Listed with agent or shopping multiple offers
- No real deadline or pressure to sell
- Unrealistic price expectations
- Fix: Qualify motivation before spending time on analysis
Deal Killer Checklist: □ ARV verified with 3+ sold comps □ Repairs estimated by contractor □ Title search completed □ Seller motivation confirmed □ Assignment fee within 50% rule □ Buyer interest pre-verified
Pro Tips
- 💡Build your buyers list before finding deals—you need somewhere to sell. A deal without a buyer is just a contract you might lose money on.
- 💡Always verify ARV with 3-5 comparable sold properties within 0.5 miles and 90 days—this single number determines whether your deal works or fails.
- 💡Use "and/or assigns" language in every purchase contract to preserve your right to assign. Without it, you may be forced to double close.
- 💡Walk every property with a contractor before going firm—repair estimates from photos are notoriously inaccurate and kill deals.
- 💡Start with smaller assignment fees ($5,000-$8,000) to build reputation and close deals. You can increase fees once you have a track record.
- 💡Disclose your role as a wholesaler when required by state law—transparency builds trust and keeps you legal in the six states with new 2025-2026 regulations.
- 💡Never exceed the 50% rule: if your buyer will profit $30,000, your maximum fee should be $15,000. Leave money on the table to ensure closings.
- 💡Build relationships with 2-3 title companies that understand wholesale deals—they can close faster and troubleshoot issues.
- 💡Pull title before going firm on any deal. Hidden liens, judgments, or ownership disputes kill deals and waste your inspection period.
- 💡Track your marketing metrics religiously: cost per lead, leads to contract, contracts to close. Most wholesalers close 2-3% of motivated seller leads.
- 💡Use driving for dollars apps (DealMachine, PropStream) to find distressed properties before they hit marketing lists.
- 💡Master objection handling for motivated sellers - most deals require 3-5 follow-up contacts before conversion.
- 💡Create a standardized property analysis checklist to evaluate deals quickly and consistently.
- 💡Build relationships with local probate attorneys who can refer estate sellers looking for quick closings.
- 💡Consider joint ventures with experienced wholesalers when starting - split the fee but learn the process.
Frequently Asked Questions
Yes, wholesaling is legal in all 50 states when done properly. You're selling your contractual rights (equitable interest), not acting as an unlicensed agent. However, six states enacted new wholesaling regulations in 2025 (Connecticut, Maryland, Pennsylvania, Tennessee, Oklahoma, and North Dakota) requiring enhanced disclosures or registration. Connecticut's HB 7287, effective July 1, 2026, will require registration with the Department of Consumer Protection. Always consult a local real estate attorney to ensure compliance with your state's specific requirements.
