An assignment fee can either be determined as a percentage of the purchase price or as a set amount determined by the wholesaler.
In this short video, Casey Ames shares his latest average assignment fees in managing his wholesaling business.
Casey Ames has a strong heart for the Lord, a luxury Home builder, multi-family Developer, SFH developer. He runs a large wholesale outfit averaging over 100 per year. A mentor and has been in the Real Estate business for 5 years.
Taylor Jene Homes builds high-quality homes and renovated older homes with care and a spirit of revival. No matter if starting from bare land or existing structure, President and founder Casey Ames ponders possibilities, develops and embraces a vision, and delivers excellence with quality and creative design.
Constantly improving on processes along with the use of technology and systems, Taylor Jene Homes empowers its crews to execute plans with clarity. Add in the singular focus of subcontractors and trades, city and county officials, professional engineers, and others to do what they do best within the project plan, a well-orchestrated collaboration results in remarkable home and new development creations.
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Jay Conner:
In your wholesaling business, what would you say your average assignment fees are these days?
Casey Ames:
Well, consistently they were 17 for a couple years in a row. I would say the average is probably somewhere around 15 right now. I get a lot because my build company and my flip company are so big, we buy a lot of inventory. And so we will methodically sell that off if the rotation isn’t right. Or I don’t feel it’s the right neighborhood for the types of houses I’m doing or whatever the case is. But if there’s 10 to 20 grand to be made we’ll make it. And so I’m not going to pass on deals. I did go through a stage in wholesaling where I was being really critical with the price. And I didn’t want to take anything if there wasn’t a good spread in it. And so I’m not as picky now.
I just want to feed the people. And so for me flipping, I have a unique position that I own: Jim State Cash Offer, which is our wholesale company out of Idaho. So I get to see all these deals, but you got to remember that most of the flippers and builders out there don’t have a wholesale company that they can lean on to get their inventory. And I understand that. And so I have a decent amount of people that I don’t know if they were alive, fully on me, but I feed them deals and I try to stay consistent, so if I make five grand on a deal and it’s going to make sure that they have extra room in their budget to set them up for success, then I’m going to make five grand. If I buy low and I get it worked out and we maybe spend a month or two months on the lead and or even five or six months at that point, and I make a hundred grand I’m going to make a hundred grand on that wholesale with the intent to make sure that there’s value created for the flipper builder.
So I kind of just dictate. I don’t have a metric where I say this is going to be a percentage I’m going to sell it at. I’ve found that each individual flipper has their own criteria and the more we can adhere to them then we can get bigger values. I have guys that do a lot of rentals. They don’t need to buy them as cheap. They don’t need as much room. They’re not selling them. They’re not paying commissions to realtors. So we have a deal, I make sure they have good rental inventory and they pay, they paid the fee for it but I always give them inventory.
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