Average wholesaling fee for Florida

6 Replies

Just wanted to see how much the average wholesaler charges for an assignment fee for properties in North Florida (Jacksonville/Duval county). Curious about other areas of the U.S. if you want to chime in also.

I personally believe it relies more on the deal you find rather then averages. The numbers lie in the deal. In my current market as well as all other markets that I see the wholesale deal's assignment fee comes from how screaming of the deal it is. You can see anywhere from $2000 to $70000 assignment fee. But on average, the wholesale fee Is usually around $5k - $10k.

There are only two ways to legally "wholesale" in Florida
1. own it
2. be licensed.

Using contracts to broker real estate without a license is not legal. 

John Thedford, Real Estate Agent in FL (#BK3098153)
239-200-5600

@Dee D.
Here are BROKERAGE activities:
A BAR SALE
Advertise
Buy
Appraise
Rent
Sell
Auction
Lease
Exchange
FOR ANOTHER. So, putting properties under contract, with the hopes of assigning, means you hope to SELL property for another. If you cannot assign, you cannot sell THEIR property. The assignment clause was NEVER intended to allow people to broker real estate. Rather, it was meant so that legitimate buyers could assign for various reasons such as taking on a partner and putting the property in a different name, putting the property into a different name than on the contract (you might have an LLC, etc). I can give you several names of people that were brokering without a license, and they got a cease and desist. The state has cracked down due to the number of "buyers" lying to sellers, marketing the properties, and then not closing if they could not assign. This is a HARM to sellers. I have even had some of these game players, advertising properties they do not own, ask me if I am a "TRUE cash buyer". They aren't.
475.42 and 475.43 are the governing statutes. 

John Thedford, Real Estate Agent in FL (#BK3098153)
239-200-5600

Thanks for the continued insight @John Thedford .  

Anyway yes, the fee lies within the deal.  Say a property is worth 100k and it doesn't need any repairs.  70% of that is 70k.  So you need to get it less than that.  So theoretically anything under that is profit.  In this theoretical deal, lets say you get it for 30k.  If you are going to just charge a flat 5k fee, the buyer would end up getting the property for 35k when it is worth 100. 

Why would you do something like this? Obviously the deal is really good, so in this case your fee could be even higher.  You could end up selling for 65, cutting a buyer a good deal and making 35k.  So, basically the more work you do,  and the more quality work you do, the more you make. 

Originally posted by @Peter Pratti :

Thanks for the continued insight @John Thedford.  

Anyway yes, the fee lies within the deal.  Say a property is worth 100k and it doesn't need any repairs.  70% of that is 70k.  So you need to get it less than that.  So theoretically anything under that is profit.  In this theoretical deal, lets say you get it for 30k.  If you are going to just charge a flat 5k fee, the buyer would end up getting the property for 35k when it is worth 100. 

Why would you do something like this? Obviously the deal is really good, so in this case your fee could be even higher.  You could end up selling for 65, cutting a buyer a good deal and making 35k.  So, basically the more work you do,  and the more quality work you do, the more you make. 

 That WOULD be legal if a licensee in FL...if not licensed, and not owned by the advertiser, brokering WITHOUT A LICENSE, a 3rd degree felony in this state. And if someone has property truly worth 100K for 65K...call me first, and every time thereafter. i WILL close..even though I could LEGALLY "wholesale" them. 

John Thedford, Real Estate Agent in FL (#BK3098153)
239-200-5600
Originally posted by @John Thedford :
Originally posted by @Peter Pratti:

Thanks for the continued insight @John Thedford.  

Anyway yes, the fee lies within the deal.  Say a property is worth 100k and it doesn't need any repairs.  70% of that is 70k.  So you need to get it less than that.  So theoretically anything under that is profit.  In this theoretical deal, lets say you get it for 30k.  If you are going to just charge a flat 5k fee, the buyer would end up getting the property for 35k when it is worth 100. 

Why would you do something like this? Obviously the deal is really good, so in this case your fee could be even higher.  You could end up selling for 65, cutting a buyer a good deal and making 35k.  So, basically the more work you do,  and the more quality work you do, the more you make. 

 That WOULD be legal if a licensee in FL...if not licensed, and not owned by the advertiser, brokering WITHOUT A LICENSE, a 3rd degree felony in this state. And if someone has property truly worth 100K for 65K...call me first, and every time thereafter. i WILL close..even though I could LEGALLY "wholesale" them. 

 Thanks John!

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