Wholesale a Deal: How to Price a Contract and Set Your Fee

Wholesalers put a house under contract and then assign that contract, or sell the house in a quick second closing, to an investor who will renovate it. The wholesaler's fee is the difference between the contract price and what the investor pays. That only works if the deal still makes sense for the investor.

Step 1: Learn what your buyers pay

Investors who buy from wholesalers usually work from a rule like the 70% rule: a percentage of the after-repair value, minus repairs. Ask the investors on your list what they use, and how they estimate repairs.

Step 2: Work back to your offer

Start from the investor's maximum and subtract your fee and costs. The Wholesale Max Offer tool does the math and shows the most you can offer the seller.

Step 3: Support your numbers

Your after-repair value and repair estimate are what investors will check first. Use closed comparable sales, and the ARV from Comps tool, rather than optimistic estimates. A realistic repair figure, ideally from a contractor walkthrough, makes your deal easier to sell.

Step 4: Set the fee the deal can carry

Once you have a contract, the Assignment Fee Calculator shows the end buyer's price, how much room is left for them, and the largest fee that still works.

Step 5: Check the rules

Some purchase contracts prohibit assignment, and some states regulate wholesaling or require a license for certain activities. Talk to a real estate attorney in your state before you start. If a contract can't be assigned, a double close may work instead; the Double Close Cost tool shows what it would take out of your spread.

Tools for this stage

• Wholesale Max Offer: your contract price
• Assignment Fee Calculator: your fee and the buyer's numbers
• ARV from Comps: numbers investors will trust
• Double Close Cost: a second closing vs. an assignment