How do wholesalers generally get paid on commercial deals?

6 Replies

I'm referring to everything from your small $250k - 1 million deal to the $38 million Hotel deal. Out of pocket from the cash buyer? As part of the Buyer's loan (doubt it but thought I'd ask)? From the seller's proceeds on the HUD?

@Ibrahim Hughes

Personally on anything over $1mil I work an assignment fee instead. If the property is a good deal, you would have no problem getting a substantial assignment fee.

Double closings can get complicated (and expensive) on multi-million dollar properties.

It depends on the property and use. There is still a decent number of cash buyers for $1mil property.

Originally posted by @Laura Alamery :

It depends on the property and use. There is still a decent number of cash buyers for $1mil property.

 I guess I'm still trying to figure out how is it done for properties priced over an amount where you normally don't find cash buyers . You mentioned double closings . Is it customary to be able to get an assignment fee when the buyer is financing the purchase instead of paying cash? 

Yes. The buyer will pay an assignment fee, regardless if he is paying cash or getting financing. 

I recently assigned a $1.4 mil property (small apartment building) and received $40k assignment fee.