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No Cap on Assignment Fees: 100% Fix & Flip Financing
By Jason Taken · Principal, Jaken Finance Group
No cap on assignment fees with up to 100% LTC when the deal pencils. How wholesalers and buyers fund wholesale fix-and-flip deals with Jaken.
No cap on assignment fees is one of the clearest signals wholesalers look for when they bring a buyer to a hard money lender. If you are a qualified borrower — or a wholesaler paired with one — Jaken Finance Group can finance up to 100% of the deal on select files without a hard max on the assignment fee, as long as the numbers still work for the end buyer.
Prefer the dedicated watch page for playback: Watch the video.
What “no cap on assignment fees” actually means
Many lenders quietly size wholesale fees as a red flag. They treat a large assignment as “too much for the middleman” and either cut leverage, demand more cash from the buyer, or decline the file even when the ARV still supports a healthy flip.
Our stance is simpler: we do not judge the wholesaler’s fee if the buyer’s deal still pencils. There is no max on the assignment amount in that underwriting frame. A $5,000 fee and a $50,000 fee are both fine when the purchase, rehab, carry, and exit leave the end investor with a real margin.
That protects both sides of a wholesale assignment:
- Wholesalers can price the contract for the work of finding, negotiating, and delivering a clean opportunity
- Buyers can still use hard money fix-and-flip financing — including up to 100% LTC on qualified files — without the lender arbitrarily capping the wholesale spread
The fee is part of basis. Underwriting reads basis versus ARV, not whether someone “deserves” their assignment check.
Who this is for: buyers and wholesalers
Two paths show up on these files:
- Qualified borrower buying a wholesale deal — you are the end investor. The contract includes an assignment fee to the wholesaler. You want max leverage and a lender who will not kill the deal over the middleman’s profit.
- Wholesaler with a qualified buyer ready — you already have an end buyer who can close. You need a lender who will fund the buyer’s stack without treating your fee as a problem.
Either way, the underwriting center of gravity is the borrower and the collateral, not a moral judgment about how much the wholesaler makes. If you are still building capital through wholesale activity before your own flips, see 100% fix and flip financing requirements for how assignment income and liquidity interact with max-leverage asks.
Up to 100% financing — still deal-driven
“Up to 100% of the deal” means select programs can fund acquisition and rehab at 100% LTC when ARV margin, scope, and sponsor performance support that leverage. Typical pricing sits in the 8.99%–13.5% interest-only band with short bridge holds — business-purpose hard money, not owner-occupied bank debt.
At that leverage, the assignment fee is simply another line in the cost stack. What matters:
| Underwriting lens | Why it matters with a wholesale fee |
|---|---|
| ARV support | Sold comps must still clear purchase + fee + rehab + sale costs with margin |
| LTC / LTV | Fee increases basis — leverage is sized to the full stack, not purchase alone |
| Buyer qualification | Credit-flexible on select programs, but the sponsor must still perform |
| Liquidity | Even at 100% LTC, closing costs, IO carry, and rehab startup need cash |
| Exit | Clear flip timeline or refinance path after rehab |
For program detail and what gets approved fastest at max leverage, read 100% LTC fix and flip program details. For how LTV and LTC are calculated on the funded stack, see Understanding LTV and LTC.
The only real test: does the deal pencil for the buyer?
The video’s rule is blunt: it does not matter what the wholesaler is making as long as the deal still pencils for the buyer.
“Pencils” means the end investor is still getting a good deal after the fee. Both can win:
- Wholesaler earns a fair assignment for bringing the opportunity
- Buyer still has enough spread to rehab, carry, sell, and profit
What does not work is a fee so large that the buyer’s all-in cost leaves thin or negative margin. In that case the problem is not “assignment fees are bad” — the problem is the buyer’s numbers no longer support the loan. We will not stretch ARV or ignore scope just to protect a wholesale check.
Investors should still underwrite like investors. Run ARV stress (−10%), add realistic sale costs, and confirm rehab is line-itemed — not a round number. If the fee is healthy and the buyer still has a strong deal, that is totally okay.
Why other lenders cap fees (and why we do not)
Fee caps usually come from policy risk aversion: fear that a large assignment means the buyer overpaid, or a blanket rule written for the worst wholesale files the shop has seen.
Blanket caps create two bad outcomes: good deals die when comps still support the fee, and wholesalers hide economics with awkward double-close structures when a clean assignment would have been clearer. We would rather see the true economics on the HUD. Transparent fees plus solid buyer numbers are easier to underwrite than creative structures designed to obscure the middle.
That does not mean every wholesale file is automatic yes. Caveats exist — market type, experience, liquidity, title, and scope still matter. Those are file-specific. Call (833) 264-7776 to walk the caveats on your contract.
How to package a wholesale fix-and-flip file
Speed the review by sending a complete stack:
- Fully executed purchase contract and assignment (or double-close docs)
- Assignment fee stated clearly — do not bury it
- Purchase price, ARV with sold comps, and line-item rehab budget
- Buyer entity, liquidity summary, and experience highlights
- Target close date and exit plan (retail sale vs. refinance)
Submit through the fix-and-flip form or start at what kind of loan do you need. Wholesalers bringing a buyer should introduce the end borrower early so underwriting sizes the right sponsor.
Illinois operators should also know the license and assignment rules that sit outside lending: wholesaling real estate in Illinois.
Worked example — fee in, margin still works
Illustrative qualified metro SFR (teaching numbers, not a quote):
| Line | Amount |
|---|---|
| Seller contract price | $180,000 |
| Assignment fee | $25,000 |
| Buyer purchase basis | $205,000 |
| Rehab | $55,000 |
| All-in cost | $260,000 |
| ARV (sold comps) | $360,000 |
| Sale costs (~8%) | ~$28,800 |
The wholesaler makes $25,000 and the buyer still has room after rehab and sale costs. That is where “no cap” matters: a rigid $10K fee policy would have forced a renegotiation even though the flip still works. Push the fee until exit margin collapses, and the same policy still says no — because the buyer is no longer getting a good deal.
In this video
- 0:00 — Wholesalers will like this policy
- 0:05 — Qualified borrower or wholesaler with a qualified buyer
- 0:10 — Up to 100% of the deal with no cap on assignment fees
- 0:18 — No max — fee size OK if the deal pencils for the buyer
- 0:28 — Both sides can get a good deal; investors still underwrite the numbers
- 0:36 — Caveats exist — call for the details on your file
Full transcript
The wholesalers are going to love this one. If you’re a qualified borrower or you’re a wholesaler with a qualified borrower, we can finance up to 100% of the deal with no cap on assignment fees. There’s no max. Doesn’t matter what the wholesaler’s making as long as the deal still pencils for the buyer. We’ll do it. We’re not going to judge you for it. Obviously, investors, make sure you’re getting a good deal, but if you are getting a good deal and the wholesaler’s also getting a good deal, that’s totally okay. There are some caveats to this, but if you want to know them, give me a call. Our link’s in the bio.
Ready to fund a wholesale flip?
Have a contract with an assignment fee and a buyer who needs leverage? Submit your fix-and-flip file with the address, ARV, rehab scope, assignment amount, and what the buyer brings to the table — or tell us what kind of loan you need. Prefer to talk through caveats on your specific deal? Call (833) 264-7776.