Price the deal from the end buyer’s point of view. Leave room for the buyer’s project costs and profit, then subtract your assignment fee to estimate the seller contract ceiling.
For a $300,000 ARV, deduct $40,000 rehab, $5,000 closing, $10,000 financing and holding, $21,000 selling costs, and $40,000 buyer profit. The buyer’s acquisition ceiling is $184,000. A $15,000 assignment fee leaves a maximum seller contract price of $169,000.
Start with the end buyer’s budget
A wholesale spread only works if the buyer can execute the deal at the total acquisition price. Enter the renovated resale value, the buyer’s rehab budget, and the costs that buyer expects to incur. Financing and holding are entered as one total dollar amount; use the flip calculator if you need to build that amount from a loan rate and project timeline. The selling-cost percentage is applied to the anticipated resale price.
Separate the assignment fee from buyer profit
The assignment fee is the spread between the seller contract amount and the buyer’s acquisition amount in this simplified model. It is not the buyer’s renovation profit. Raising your fee lowers the seller contract ceiling dollar for dollar when the rest of the deal stays the same. Your actual net income can be lower after marketing, due diligence, transaction, and business expenses. Enter any additional transaction costs in the appropriate cost allowance.
Use an itemized offer when a shortcut is too broad
Unlike a fixed 70% rule, this calculator makes the buyer’s cost and profit assumptions explicit. That is useful when selling costs, holding periods, or margins differ from the shortcut. It still depends on a defensible ARV and a repair budget the buyer accepts. Contract rights, assignment restrictions, required disclosures, and closing arrangements must be checked separately; a positive modeled spread does not establish that a transaction can be assigned.
A LITTLE MORE CLARITY
Frequently asked questions
Is the assignment fee the same as my net profit?
No. The fee is gross transaction revenue in this model. Subtract your own marketing, due diligence, closing, and business expenses to estimate what you keep.
Why is this different from the MAO calculator?
This tool subtracts itemized buyer costs and a dollar profit target. MAO uses an editable ARV percentage as a combined allowance for costs and profit.
What if the maximum contract price is negative?
The assumptions do not leave room for a positive purchase price. Recheck value, repairs, buyer costs, profit, and assignment fee rather than treating the output as a viable offer.
