Taxes on assigning contracts

[Dylan Swinney]

I am very interested in wholesaling or assigning contracts to kick off the start of my investing career. I have found a lot of information on the process but have yet to find anything on taxes. Can anyone help me out??

[Aaron Mazzrillo]

After reading the comments, wow, talk about a turd in the punch bowl...

Wholesale (or assignment) fees are taxed as earned income. A portfolio of rentals helps offset that, but since you're just getting started, you'll be helping to pay our government's bills.

Wrong road to success? Hmmm. That definition of success and Webster's must be somewhat different. 

That being said, wholesaling is not for the new investor with zero deal flow. You should be wringing all the profit out of each deal you can when you first start. Otherwise, you're probably on the slow road to success.