What is the difference between assigning a contract and a double close?

In an assignment, you sell your right to purchase the property and your fee is disclosed to all parties. In a double close, you buy and immediately sell the property in two separate transactions, keeping your profit private. A double close costs 1.5-3% extra in transactional funding and closing fees.

Do I need a real estate license to wholesale?

Licensing requirements for wholesaling vary by state. Some states require a license if you are marketing properties you do not own. Always consult a real estate attorney in your state. The safest approach: always have the property under a signed purchase agreement before marketing it.

How many leads does it take to close a wholesale deal?

Industry averages suggest 30 to 60 leads per closed deal depending on the marketing channel and market. Direct mail typically converts 1-2% of leads. Track your cost per lead and leads per deal to determine whether your wholesaling business is profitable.

Real Estate Wholesaling Calculator

Q: How much should I charge as an assignment fee?

Assignment fees typically range from $5,000 to $30,000 depending on the deal. The fee must leave enough equity for the end buyer — most active investors want at least 20% equity margin. Calculate backwards from what the buyer needs: Max Fee = ARV × (1 − target equity%) − contract price − rehab − closing costs.

Q: What is the 70% rule in real estate wholesaling?

The 70% rule says a fix-and-flip investor should pay no more than 70% of the after-repair value (ARV) minus rehab costs. This leaves a 30% buffer for holding costs, financing, selling costs, and profit. As a wholesaler, your assignment fee must fit within that 70% cap.

Analyze wholesale deals in seconds. Check the 70% rule, find your maximum assignment fee, score deal quality, and model your wholesaling income — all in one place.

After Repair Value (ARV)

Your Contract Price

Rehab Estimate

Assignment Fee

Deal Viability

Adjust Numbers

Fails 70% rule — over by $10,000

End Buyer All-In

$188,000

End Buyer Equity

$62,000

Equity Margin

24.8%

70% Rule Check

Fail

Max purchase price at 70% rule: $130,000. Either lower the contract price or reduce the assignment fee.

Advanced

Assignment Fee Analysis & Deal Scoring

Max fee the market will bear, deal quality score, assignment vs double close

Your assignment fee must leave enough equity for the end buyer to be motivated. Most active investors want at least 20–25% equity margin.

Buyer Closing Costs

Max Fee (20% equity)

$22,000

Minimum margin most investors accept

Max Fee (25% equity)

$9,500

Strong deal threshold

Max Fee (30% equity)

Very motivated buyer territory

Your Fee

$10,000

Within market range

70% ARV Target

$175,000

Max all-in for end buyer (industry rule)

Room vs 70% Rule

Buffer remaining

Pro

End Buyer Returns & Volume Model

What ROI does your buyer get, annual income projection, and marketing cost per deal

Understanding your end buyer's returns tells you if they will be motivated to pay your fee — or if you are pricing them out.

Monthly Rent After Repair

End Buyer All-In Cost

$188,000

Contract + fee + rehab + closing

After Repair Value

$250,000

What they can sell for when done

Fix & Flip Profit

$62,000

ARV minus all-in cost

Fix & Flip ROI

33.0%

Profit / all-in cost

Gross Rent Multiplier

11.6x

Lower is better for BRRRR buyers

Est. Cash-on-Cash Return

8.6%

Simplified rental return estimate

Your end buyer is getting a 33.0% ROI — they should be motivated at your $10,000 fee.

How to Use the Wholesaling Calculator

Real estate wholesaling means finding a discounted property, getting it under contract, and then assigning that contract to an investor buyer for a fee — without ever owning the property yourself. This calculator helps you quickly evaluate deal viability and size your assignment fee appropriately.

Quick Calculator

Enter the After Repair Value (ARV) — what the property will be worth after renovation. Enter your contract price with the seller, the rehab estimate for the end buyer, and your assignment fee. The calculator instantly checks the 70% rule, shows the end buyer's equity margin, and tells you whether the deal is viable at your numbers.

Advanced: Fee Analysis and Deal Scoring

The Assignment Fee tab shows the maximum fee the market will bear at different equity thresholds (20%, 25%, 30%). The Deal Scoring tab rates your deal out of 100 based on equity spread, rehab complexity, and 70% rule compliance. The Double Close tab compares the cost of keeping your fee private via a double close versus a standard assignment.

Pro: End Buyer Returns and Volume Model

See exactly what ROI your end buyer gets — fix-and-flip profit, ROI percentage, and rental return estimates. The Volume Model projects your annual income based on deals per month and average fee. The Marketing Cost Analysis calculates cost per deal, net profit per deal, and the marketing budget needed to hit your income target.

The 70% Rule Formula

Maximum Offer = (ARV × 0.70) − Rehab Costs − Assignment Fee

End Buyer All-In = Contract Price + Assignment Fee + Rehab + Closing Costs

Equity Margin = (ARV − End Buyer All-In) / ARV × 100%

Deal Viability: End Buyer All-In ≤ 70% ARV AND Equity Margin ≥ 20%

Assignment Fee Ceiling = ARV × (1 − Target Equity%) − Contract Price − Rehab − Closing

The 70% rule is the industry standard for fix-and-flip deals. It ensures the end buyer has enough margin to cover holding costs, financing, selling costs, and profit. As a wholesaler, you must price your fee so the deal still passes the 70% rule after your fee is included.

Example: Wholesaling a 3-Bedroom Ranch in Ohio

ARV: $250,000 | Contract Price: $140,000 | Rehab: $35,000

After Repair Value (ARV)	$250,000
70% Rule Threshold	$175,000
Your Contract Price	$140,000
Rehab Estimate	$35,000
Assignment Fee	$10,000
End Buyer All-In	$188,000
End Buyer Equity	$62,000 (24.8%)
70% Rule Check	$188,000 < $175,000? FAIL
Max Fee at 70% Rule	$0 (deal is too tight)
To Pass 70% Rule	Lower contract to $130,000 → fee of $10,000 works

This example shows how important it is to negotiate a lower contract price. At $130,000 contract, the end buyer is all-in at $178,000 — still above the $175,000 target but close. The more aggressive negotiator gets $125,000, creating a comfortable $10,000 fee with room to spare.

Frequently Asked Questions

Assignment fees typically range from $5,000 to $30,000 depending on the deal. The fee must leave enough equity for the end buyer — most active investors want at least 20% equity margin. Use the Assignment Fee Analysis tab to find the maximum fee your specific deal will bear at 20%, 25%, and 30% equity thresholds. Never guess: always calculate backwards from what the buyer needs.

The 70% rule says a fix-and-flip investor should pay no more than 70% of the after-repair value (ARV) minus rehab costs. This leaves a 30% buffer for holding costs, financing, selling costs (6%), and profit. As a wholesaler, your assignment fee must fit within that 70% cap. If (contract price + rehab + your fee) exceeds 70% of ARV, most experienced flippers will not buy the deal.

In an assignment, you sell your right to purchase the property to an end buyer, and your fee is disclosed to all parties. In a double close (also called a simultaneous close), you actually buy the property from the seller (A-B transaction) and then immediately sell it to the end buyer (B-C transaction) as two separate closings. The double close keeps your profit private but costs 1.5-3% extra in transactional funding and closing fees. Use a double close when your fee is large enough to justify the cost or when seller sensitivity requires it.

Licensing requirements for wholesaling vary by state. Some states (like Illinois and Missouri) require a license if you are marketing properties you do not own. Other states have no explicit requirement if you are assigning your own contract. Always consult a real estate attorney in your state before wholesaling. The safest approach: always have the property under a signed purchase agreement before marketing it, and consider getting licensed to avoid gray areas entirely.

Industry averages suggest 30–60 leads per closed deal, depending on marketing channel and market. Direct mail typically converts 1-2% of leads into signed contracts. Cold calling may require 50-100 conversations. Digital marketing (Google PPC, Facebook) varies widely. Track your cost per lead and leads per deal religiously — these numbers determine whether your wholesaling business is profitable. The Marketing Cost Analysis tab lets you model different conversion rates to find your true cost per deal.