BrickAtlasGuidesArticle

How wholesalers should underwrite before assignment

Your buyer list is an asset. Protect it with MAO and rehab ranges you would buy yourself — not numbers engineered only to win the assignment fee.

Underwrite for the end buyer’s strategy

Assignment buyers are usually flippers, BRRRR operators, or landlords. Your MAO must clear their required margin after rehab, holding costs, and exit — not just your fee.

If you do not know which buyer type you will call, underwrite the stricter path. Easy assignments come from conservative files.

MAO discipline

Max allowable offer frameworks (including 70%-rule style screens) exist to leave room for rehab and profit. Treat them as ceilings to pressure-test, not entitlements.

  • ARV from real comps — same class, same condition story after rehab.
  • Rehab range with contingency, not a single heroic number.
  • Holding costs and selling costs if the buyer flips.
  • Your fee inside the spread, not glued on after a thin deal.

Condition honesty

Mislabeling structural work as cosmetic is how buyer lists churn. Photo-backed condition notes and scoped ranges beat adjectives. If you cannot inspect yet, widen the rehab range and say so.

A pre-assignment checklist

  1. 01

    Define the likely exit

    Flip, BRRRR, or hold — and the metric that buyer will check first.

  2. 02

    Rebuild ARV and rehab

    Comps and scope you can defend on a phone call.

  3. 03

    Compute MAO with fee inside

    If the fee only works by ignoring rehab reality, walk.

  4. 04

    Package the file

    Numbers, photos, title notes, and clear disclaimers — then call buyers.

FAQ

What should wholesalers underwrite before assigning?
ARV, rehab range, holding assumptions, MAO, and whether a real buyer strategy still works after your fee. Skip the underwrite and you are transferring risk to your list.
Is the 70% rule enough?
It is a fast screen, not a full underwrite. Markets, rehab intensity, and exit costs change the right percentage. Use MAO math, then verify with strategy-specific profit or rental metrics.
How does BrickAtlas help wholesalers?
Quick MAO and flip/BRRRR screens, plus Investment Memos that make the buyer conversation faster and more credible — without inventing the math.
When should I walk from a contract?
When ARV only works with fantasy comps, rehab is unbounded, title risk is unresolved, or your fee requires the buyer to accept a thin or negative margin.

Assign deals your buyers can defend

Screen MAO and strategy before you burn a buyer relationship — then package the file with numbers that recompute.

Request Free Access