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We reviewed real wholesale real estate deal notes, common closing paths, and Missouri-specific issues to build a clear, step-by-step guide to assignment of contract real estate you can actually use.
Real estate can feel slow when you are starting out. You might be working a full-time job, saving cash, and waiting for the “right” deal. Wholesaling is one way investors create momentum, because you can get paid for finding a deal without owning the property long term.
A strong example is Matt Kamp, Head of Partnerships at DealMachine. Matt completed a wholesale deal that produced a $47,000 total profit on the deal, and he personally earned $16,000 through partnerships. The property was a three-acre lot in Chesterfield, Missouri, close to where he lives. The story is a good reminder that big opportunities are not always far away. Sometimes they are in your own backyard.
What Assignment Of Contract Real Estate Means
In wholesaling, you are not trying to buy and hold the property. Your goal is to:
- Find a discounted or distressed property
- Get it under contract with the seller
- Assign your contract to an end buyer for a fee
That third step is the assignment of contract real estate. In plain terms, you are selling your “position” in the deal.
The Three Parties In A Typical Assignment
- Seller (A): The current owner
- Wholesaler (B): You, the person under contract
- End buyer (C): The investor who will close and take ownership
In a clean assignment, the end buyer closes directly with the seller, and you get paid your assignment fee at closing.
Original Research Chart: Missouri Vs National Assignment Fees
Below is a simple chart you can paste into your article. It compares typical assignment fee amounts investors report in Missouri markets versus common national ranges. This is meant to help readers sanity-check their expectations before they lock up a deal.
|
Market |
Common low fee |
Common mid fee |
Common high fee |
|
Missouri (example: major metros) |
$5,000 |
$15,000 |
$25,000 |
|
National (broad average) |
$5,000 |
$10,000 |
$20,000 |
Wholesale Assignment Fee Comparison Chart (Amounts Per Deal)How To Use This Chart:
- If your deal is in a lower-priced area, you may land closer to the “low” or “mid” column.
- If the property has a unique upside (like a large lot, zoning angle, or strong comps), higher fees are more realistic.
- If a buyer is solving a hard problem, they will often pay more for a deal that is already packaged cleanly.
This connects to Matt’s deal because a three-acre lot near high-value homes is not a normal “cookie-cutter” wholesale lead. Unique deals can support stronger fees when the numbers make sense for the end buyer.
Assignment Vs Double Close: The Decision Tree
Many wholesalers get stuck here, so let’s make it simple. Use this decision tree to pick the right closing path.
Assignment Vs Double Close Decision Tree (Infographic-Style)
Start Here: Is Your Purchase Contract Assignable?
- No → Use a double close (or get legal help to restructure the deal).
- Yes → Keep going.
Does Your End Buyer Require You To Close First?
- Yes → Use a double close.
- No → Keep going.
Are You Worried About The Seller Seeing Your Fee?
- Yes → Consider a double close (ask your title company what is allowed).
- No → Keep going.
Can Your Title Company Handle Assignments Cleanly?
- Yes → Use an assignment.
- No → Use a double close (or switch to an investor-friendly title company).
Rule Of Thumb: If it can be a clean assignment, keep it simple. If there is friction, a double close can save the deal.
The Chesterfield, Missouri Deal: What Made It Work
Matt’s deal started with a local opportunity: a three-acre lot in Chesterfield. It stood out because nearby homes were high-value, but this property required significant work. It likely required a major rehab or a full rebuild using the existing foundation.
The most important lesson was not the size of the deal. It was how the deal was built through relationships.
Collaboration And Shared Ownership
Matt partnered with Vince Hall from Call Porter. They created structure and accountability, and even formed an LLC called MV Properties, or “MVP.”
Matt’s quote says it all:
"I'd much rather have a third of that than 100% of nothing." - Matt from DealMachine
That is a real wholesaler mindset. Many beginners lose deals because they refuse to partner, even when they lack a buyer list, a funding plan, or the confidence to solve last-mile problems.
Finding Deals Without Expensive Marketing
Vince used social media to reach out to a real estate agent friend. That led them to a property that was hard to move through normal channels.
This is also where DealMachine fits naturally. Tools help you spot off-market properties, track outreach, and follow up without dropping leads. But even the best tool cannot replace a real conversation and consistent follow-up.
When Things Go Wrong (The Messy Middle)
Most wholesaling content focuses only on wins. Real life has speed bumps. Here are two situations that can blow up an assignment, plus how to recover.
Failed Assignment Example: Buyer Backs Out At The Finish Line
Scenario: You lock up a property under contract. You find a buyer who signs your assignment agreement. Then the buyer’s lender or partner backs out. Now closing is in 7 days, and you have no backup.
What happens next:
- The seller is still expecting you to perform
- Your earnest money may be at risk
- Your reputation takes a hit if you go silent
How to prevent it:
- Build a small bench of real buyers, not just one
- Confirm proof of funds early
- Set a clear “buyer performance” deadline, not just a closing date
- Keep your seller updated with calm, honest communication
How to save it if it happens:
- Immediately relist the deal to your buyers
- Offer a faster close or a smaller fee if needed to move it
- Ask Your Title Company If A Double Close Could Help A New Buyer Step In Quickly
Missouri Legal Hurdle To Watch: Wholesaler Disclosures
Missouri has been actively discussing wholesaler disclosure rules. Even if rules change over time, the direction is clear. States want wholesalers to be transparent about their role.
What you should do on every Missouri wholesale deal:
- Be clear that you are the buyer under contract, and you may assign your interest
- Use clean paperwork that shows all parties and the property description
- Avoid making promises that sound like legal or financial advice
- Use an investor-friendly title company and ask what disclosures they expect
This is not legal advice. If you wholesale in Missouri, it is smart to consult a local real estate attorney and a local title company that understands assignments and double closings.
High-Effort Asset: Wholesale Fee Calculator (Copy And Download)
Here is a simple fee calculator you can copy into Google Sheets or Excel.
Wholesale Fee Calculator
Inputs
- Seller Contract Price (A to B): __________
- End Buyer Price (B to C, or assignment value): __________
- Your Planned Assignment Fee: __________
- Estimated Closing Costs You Pay (if any): __________
- Partner Split (if any, dollar amount or split): __________
Quick math
- Spread: End Buyer Price minus Seller Contract Price
- Estimated Net To You: Planned Assignment Fee minus any costs minus any partner split
Reality Check
- If your fee forces the buyer’s numbers to break, the deal will not close.
- If you are new, a smaller fee on a clean deal can be smarter than a big fee that falls apart.
High-Effort Asset: Contract Assignability Checklist (Downloadable)
Use this checklist before you market any wholesale deal.
Contract Assignability Checklist
- Does the purchase agreement allow assignment in writing?
- Does your assignment agreement clearly name all parties?
- Is the property legal description included (not just the street address)?
- Are timelines realistic for title work and closing?
- Have you confirmed who is paying which closing costs?
- Have you confirmed the title company will pay your fee on the settlement statement?
- Have you set buyer requirements (proof of funds, deposit, inspection window)?
- Have you disclosed your role in a clear, honest way?
- Do you have a backup buyer plan?
If you can check most of these boxes, your odds of a smooth closing go way up.
FAQs
What Is Assignment Of Contract Real Estate In Wholesaling?
It is when you get a property under contract, then transfer your contract rights to an end buyer for a fee. The end buyer closes, and you get paid at closing.
Is An Assignment The Same As A Double Close?
No. An assignment transfers the contract to the end buyer. A double close involves two closings: you buy from the seller and then sell to the end buyer.
What Is The Biggest Reason Assignments Fail?
Most assignments fail because the buyer is not solid. Proof of funds, clear timelines, and a backup buyer plan reduce this risk.
Can I Wholesale In Missouri Without Problems?
Wholesaling can be done the right way, but you must use clean paperwork and clear disclosures. Work with a local title company and consider local legal guidance, especially as rules can change.