A real estate wholesaler is a SOURCE OF REAL DEALS for other investors who have the cash to close on those DEALS. The wholesaler collects their “assignment fee” from the investor who actually steps in and buys their DEAL. They are like wholesalers in any other industry-middle men who source product for their client.
“Assignment Fees” get their name from the way the agreement of sale is structured in a wholesale DEAL.
A wholesale DEAL goes like this:
1. Wholesaler Contracts the DEAL -The wholesaler negotiates the deal with a seller and puts the property under contract-they sign an agreement of sale with the seller with their name (or company) as the buyer. Their name appears like this, “Wholesaler name, and/or assigns” as Buyer-giving them the right to “assign” their rights in the agreement to another “Buyer.”
2. Wholesaler Assigns the DEAL-When the wholesaler finds the end buyer willing…
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