Buying from a wholesaler can get you a good house at a good price, but it adds a contract, a fee and a short clock. Here is how a flip loan handles each of them.
In short: Yes, you can finance a property bought from a wholesaler with a fix and flip loan. The main question is how the assignment fee is treated: some programs count it as part of your purchase price, while others lend only on the price in the underlying contract and treat the fee as your cash. A clean paper trail, a fee that makes sense next to the after-repair value and an early start on title matter more than anything else. Our programs cover up to 90% of the purchase price and up to 100% of the rehab, and can close in as little as 10 days.
A wholesaler puts a property under contract with the seller, then sells you the right to buy it. You pay the seller's price plus the wholesaler's fee.
To a lender, that means two prices for one house: the price in the original contract and the total you are paying. The file has to show both, and they have to match the settlement statement at closing.
This is where wholesale deals differ most from lender to lender. Ask how the fee is handled before you sign the assignment, because it can change your cash to close by thousands of dollars.
Programs that include the fee usually want it disclosed in the assignment agreement and on the settlement statement, and they still check the total against the after-repair value. A fee that looks out of line with the deal can trigger a closer review or a lower loan.
With an assignment, there is one closing. The seller deeds the property to you, and the wholesaler's fee is paid out of that closing. It is usually the simpler file for a lender.
With a double close, the wholesaler buys the property and resells it to you, often the same day. There are two closings and two sets of closing costs. Because the wholesaler held title only briefly, some programs look at both sale prices and may base leverage on the lower one, or ask why the price changed. Details vary by program and by state, so confirm with your title company.
| Item | Assignment | Double close |
|---|---|---|
| Closings | One | Two, often back to back |
| Who is on title before you | The original seller | The wholesaler, briefly |
| Fee visibility | Shown on the assignment and settlement statement | Built into the second sale price |
| Common lender question | Is the fee counted in the purchase price? | Which sale price does leverage use? |
| Paperwork | Original contract plus assignment | Both contracts and both settlement statements |
This example is illustrative and not a quote. A wholesaler has a house under contract for $210,000 and assigns it to you for a $25,000 fee, so you pay $235,000. The rehab budget is $55,000, the after-repair value is $400,000 and the program caps the loan at 70% of ARV ($280,000).
If the program counts the fee, the loan is 90% of $235,000 ($211,500) plus 100% of the rehab ($55,000), or $266,500. That is under the $280,000 cap, so you bring $23,500 toward the purchase, plus closing costs.
If the program lends only on the $210,000 contract price, the purchase portion is $189,000 and the loan is $244,000. You bring $46,000 plus closing costs, which is $22,500 more cash for the same house.
| Fee counted | Fee excluded | |
|---|---|---|
| Price used for leverage | $235,000 | $210,000 |
| Purchase portion (90%) | $211,500 | $189,000 |
| Rehab portion (100%) | $55,000 | $55,000 |
| Total loan | $266,500 | $244,000 |
| Your cash toward purchase, before closing costs | $23,500 | $46,000 |
The wholesale structure rarely sinks a deal on its own. What lenders look at is the same as any flip, plus a few checks on the contract chain.
Send the full contract chain at once. Missing pages from the original contract are one of the most common reasons a wholesale file stalls.
Our financing team can review the numbers before you pay a non-refundable deposit and bring back 2–3 options showing how each treats the fee.
Wholesale contracts often come with short closing windows. We can close in as little as 10 days, but that depends on getting a complete file, a title commitment and the property valuation back quickly.
Order title as soon as the assignment is signed, and ask for access so the valuation can be scheduled right away. If the window looks too tight, ask the wholesaler for an extension in writing before day one, not on day nine.
On some programs, yes. Some include the fee in the purchase price, some cap it and some exclude it so you pay it in cash. Ask how the fee is treated before you sign the assignment.
An assignment is usually the simpler file because there is one closing and the fee is visible. A double close can work, but lenders may look at both sale prices and ask for both settlement statements.
It shows the price the seller agreed to and confirms the wholesaler had the right to assign the deal. Without it, the lender cannot confirm the contract chain or the true purchase price.
We can close in as little as 10 days when the file is complete and title and the valuation come back quickly. Starting title the day you sign the assignment helps the most.
Related-party deals get extra review and may not qualify on some programs. Disclose the relationship up front so the financing team can tell you which options fit.
The loan may be limited by the after-repair value cap. You can bring more cash, ask the wholesaler to lower the fee or submit additional comps for review.
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