Wholesale guide
How does Buyer Pay Ceiling affect a wholesale assignment fee?
A proposed assignment fee reduces the amount left for the seller-price ceiling in a Buyer Pay Ceiling screen. Calculate (selected ARV × BPC percentage) − estimated rehab − proposed wholesale fee, then compare that result with the contract price. This shows fee sensitivity under stated assumptions; it does not establish a buyer's actual maximum or guarantee a fee can be earned.
See the fee's effect in the formula
Buyer Pay Ceiling is a bounded percentage-of-ARV estimate informed by available ZIP-level flip observations or market signals, or a default market rate when relevant data is unavailable. For a wholesale screen, multiply selected ARV by that percentage, then subtract estimated rehab and the proposed wholesale fee. Increasing the fee lowers the residual amount available for the seller price dollar for dollar, assuming the other inputs stay constant.
For example, do not describe the residual as a guaranteed maximum offer. It is an arithmetic scenario. Its usefulness depends on the accuracy of ARV, scope, and buyer-pay assumptions, as well as the deal terms.
- Enter the fee you actually intend to request.
- Keep the fee separate from repairs so the buyer's basis is transparent.
- Compare more than one fee scenario without changing unrelated assumptions.
Check whether there is credible fee room
A positive residual is not automatically assignment-fee room. Confirm that ARV reflects comparable sales and that rehab includes likely work, contingencies, and items not yet inspected. Then ask relevant buyers to evaluate the property, assignment price, access, and timeline. Buyers may require different margins or account for costs that this simple screen does not model.
If a deal only works with an unusually high ARV, a minimal rehab scope, or an untested buyer percentage, treat the apparent room cautiously. A sensitivity table can make the tradeoffs clear: show the result as ARV, rehab, and fee assumptions change.
- Identify which input causes the largest change in the result.
- Get specific buyer feedback on the total acquisition basis.
- Check contract assignability, disclosure, and applicable legal requirements.
Do not confuse a screen with net proceeds
BPC is not an actual buyer quote and does not model every buyer's financing, holding, closing, selling, or required-return costs. It also does not determine the legality, collectability, or final amount of an assignment fee. Transaction expenses, contract obligations, negotiation, and local rules may affect what a wholesaler can retain.
Treat the estimate as one tool for deciding whether to investigate and how to explain assumptions. Confirm fee terms with the parties and qualified professionals as appropriate; do not promise a fee solely because the screen leaves a positive residual.