Calculating the Right Amount of Assignment Fee

[Robert Burns]

I'm looking for the best way to calculate the right amount of assignment fee.  I've been wholesaling for a while and typically I've used a flat assignment fee from $5,000 to $20,000 based on the size of the deal.  But was looking for a more flexible way to make sure my assignment fee is proportional to the profit my end buyer is going to make off really good deals I bring.

I'll use the example and I would appreciate feedback on what the assignment should be on this deal.

ARV: $275,000 x .70 = $82,500

Repairs: $80,000

Seller Payoff: $97,000

Assignment Fee: ?

[Shiela R.]

@Robert Burns, hi there.  I agree with what has been said by @Jim Pellerin. Def check your math! if ARV is $275,000, then 70% is $192,5000. Take that number then subtract rehab/repairs and your assignment fee to make sure you don't tie the property up at too high of price.

Also, to echo what @Jerryll Noorden said - you are building a business and reputation.  Don't worry so much about who is making what and look for a solution that is a win, win, win.  You, the seller, the end buyer all WIN.

Good luck! :)