Assignment Fee
The wholesaler's profit: the spread between the contract price with the seller and the price the end-buyer pays.
The assignment fee is what a wholesaler earns by assigning a purchase contract to an end-buyer — the difference between the price they locked with the seller and the price the buyer pays. Lock a property at $150,000 and assign it for $165,000, and the fee is $15,000.
The fee is capped by the end-buyer's math: assign for too much and the deal exceeds their maximum allowable offer, so they walk. Pricing the assignment to keep the buyer under their MAO is what makes a deal actually close.
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