Wholesaling 101: Understanding Assignor vs Assignee (Get Paid Without Owning Property)

If you’ve been hearing about real estate wholesaling but still feel confused about how the money is actually made… this episode breaks it all the way down.

In this episode of The Real Estate Wholesale Deal Room Podcast, we’re diving into one of the most important fundamentals every wholesaler must understand: the difference between the Assignor and the Assignee.

👉 Who controls the contract
 👉 Who actually buys the property
 👉 How YOU get paid without ever owning real estate

I’m going to walk you through how these roles work together in a real deal, how assignment fees are created, and how to position yourself as the one bringing value to the table.

Because here’s the truth…
 Wholesaling is not about owning property. It’s about controlling opportunities and connecting the right buyer to the right deal.

If you don’t understand this structure, you will miss deals. But once you do… everything starts to click.

This episode is perfect for:
 • New wholesalers trying to understand the basics
 • Real estate investors looking to scale with deal flow
 • Realtors who want to work with investors and close more deals

🎯 Ready to take this to the next level?
If you want help structuring your deals, getting pre-approved like an investor, or building a strategy that actually gets you paid…

👉 Schedule your 1-on-1 strategy session: https://calendly.com/homeloansnetwork

 👉 Or apply directly to get funding lined up: https://www.homeloansnetwork.net/apply

Make sure you subscribe, because this is where real deals get broken down, real strategy gets shared, and real money gets made.

Contact Ebonie Beaco  (NMLS ID: 2389954)
📞 Direct: 312-392-0664
Website: www.HomeLoansNetwork.com

And don’t forget—join me LIVE every Wednesday at 7pm CST on YouTube @HomeLoansNetwork for Wine Down Wednesdays to get real-time mortgage and real estate tips, ask questions, and stay ahead of the market.

Let’s get you approved and ready to buy with confidence.

The Real Estate Wholesale Deal Room Powered By Home Loans Network, we are always looking to partner with realtors, insurance agents, builders, developers, and real estate attorneys to interview and feature on the podcast. If you're a professional who wants to share your expertise, we’d love to collaborate with you. BOOK HERE

And to our listeners — your questions matter. We want to hear from you, feature your questions, and answer them on future episodes. Don’t hesitate to reach out and let us know what you’d like to learn more about!

📞 Call or Text: 312-392-0664
🌐 www.HomeLoansNetwork.com

👩‍💼 Ebonie Beaco – NMLS #2389954
🏢 Home Loans Network (NMLS #320841)

Transcript

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SPEAKER_00 0:00

Welcome, welcome, welcome back to the real estate wholesale deal room. I am your host, Ebony B. Cole, Mortgage Strategist, and this is where real estate deals get broken down. Real strategies get exposed, and you learn how to actually make money in real estate wholesaling with me. Now, today I am going to be talking about something that is a little different that a lot of um people, whether they're real estate investors, real estate wholesalers, newbies, or and when I say real estate wholesalers, understand some real estate wholesalers don't even understand this. They call themselves real estate wholesalers. That's because they're trying to get into it. So with that being said, I'm gonna talk about what's the difference between an assignor and an assignee and the roles of each. But let me tell you this if you don't understand these roles clearly, you're going to struggle in the real estate wholesaling business. You're gonna miss deals, you're gonna confuse buyers, you're gonna leave money on the table. So whether you're brand new trying to figure out real estate wholesaling and how it works, or you've done a few deals and you're trying to tighten up your structure and get paid bigger assignment fees, this particular episode is for you. I'm going to be talking about what an assigner really does, what an assignee expects of you, how the money actually flows in a deal, and how to position yourself so you stay in control of the deal from start to finish. Because, see, one thing about wholesaling is not about owning the property, it's about controlling the opportunities and getting paid for putting the right people together. And once you understand that, everything else has changed. So let's go ahead. Take some notes, make sure you subscribe, and we are going to talk about assignee and assignor and an assignment and how these deals really happen. So, with that being said, let's get started. Now, when it comes to being a wholesaler, like I said, it's really important to understand that the assignor is you. You are the assignor, you are the wholesaler. The assignor is the person who find the deal, gets the property under contract with the seller, controls the deal, but does not own it. Okay, you don't own the property, but you are the one that controls that deal, and you partially are one of the people that controls that contract because your name is on there as the assignor. Okay, so with that being said, your job as the assignor is to assign, meaning transfer the contract to another buyer, and that other buyer is the assignee. So look at the look at it this way: you're the deal finder, plus you're the deal creator, so you're the person that finds the deal and you create the deal. Now, what you do as a whole signer, a whole signer, I like that. What you do as an assigner, you negotiate a good price with the seller. Okay, so you're gonna negotiate that price. They have it listed for $100,000, and you're gonna figure out where your numbers are gonna fit in at. You're gonna lock it in with a purchase agreement, you're gonna market the deal to your buyer's list. Your buyer's list is your list of prospective real estate investors because one of those real estate investors are going to be your assignee. You're gonna then sell your contract rights for free. So you're gonna sell your interest in a contract for a fee. Okay, now this is how you're gonna get paid that assignment fee. So that fee that you're gonna receive for selling over your contract rights. This is how you're gonna make money. This is an example. You get a house under contract for $100,000, you assign it to an investor for $115,000. Your profit is $15,000 assignment fee. Okay, so again, let's do this again. You get the house on the contract for $100,000, you assign it to an investor for $115,000. Your profit is $15,000 assignment fee. Now, the assignee, which is the investor, which is also the end buyer, that is the person that is on your buyer's list. The assignee is the person who buys your contract, steps into your position in the deal, actually closes on the property. So, in simple, they're the ones with the money who finishes the deal. Now, here's what they actually do: they pay your assignment fee. So they're gonna pay that $15,000 assignment fee, they're gonna take over the contract, they're gonna close with the seller. Usually, this is a fix and flip type of deal. This is a rental property type of deal, this is a buy and hold type of property deal. But this is what they're gonna do. Understand when it comes to the assignment fee, you only get that at closing, you don't get that before closing because what if the deal doesn't go through? So I need you to understand that, but you will have an assignment agreement. Now, here's how it actually works together. You, the assigner, which is the wholesaler, gets the property under contract. You as the assignor, as the wholesaler, find a buyer, which is on your buyer's list, or maybe the um outreach marketing you have done. That person now, as the buyer, is the real estate investor, they are the assignee. Now, that buyer, which is the assignee, agrees to your price, which is that one hundred and fifteen thousand dollars. Because remember, the seller agreed to one hundred thousand dollars. You then you as the assignor assigns the contract to the assignee, which is the investor. Now, the assignee closes the deal at the closing table. You as the assignor slash wholesaler gets paid at the closing table. Okay, now, and also this is also why it is important to make sure you close um as a sign or that you're not doing this in your name, you are doing this in your entity name. Your entity could be your corporation, your LLC, because most of the time or some of the time, this is going to go on a settlement statement at closing, and them pan Doe, you know, can look some type of way. So if you want to keep everything professional, you make sure that you actually incorporate your wholesale business so you can get paid at the closing table from the assigning. Now, wholesaling, what I need you to really understand this this is it's kind of like checkers, not checkers, chess, right? Some people play checkers, some people play chess, and I will say anybody can play checkers once you look at it a couple times. Everybody can't play chess, no matter how hard they learn. So, with that being said, wholesaling is not about owning the property, it's about controlling the deals, it's about solving sellers' problems, it's about connecting buyers to different opportunities. Wholesaling is about marketing and networking. Wholesaling is about knowing opportunities when you see them. So, let me break this down a little more for you as a wholesaler. Here's the key role: so when it comes to the position as a wholesaler, you are the assigner, you are the middleman, your assignee is the end buyer, is the investor. Now, when it comes to the assignee and an assignor role in wholesaling, the risk that's involved, okay. For you as a wholesaler, the assignor is low. If it's structured right, it's really no risk, okay. For an assignee, it's always gonna be a high risk because what if their property don't appraise out? What if they're not working with a real good um finance company? What if they lose you know their earnest money that was put down? So there are some risk that's involved when it comes to the assignee, and that's why I says when it comes to real estate wholesaling, it's truly about the opportunities and building the relationships because again, people do business with people they like, people do business with people they trust. And as a real estate investor, some real estate investors you know worked with wholesalers in the past, and for them, um, it didn't turn out good, so you need to make sure that you are that assignor and wholesaler that they trust to avoid having it as high risk as possible. Now, when it comes to the assignor and the assignee, the money that's needed, very little for the money that's needed, and when I say very little for the money that is needed, is because there is uh a situation whereas, you know, as a wholesaler, you may need to pay earnest money, right? So the earnest money that you have to pay, that is based upon what the seller is, you know, the seller is agreeing upon. The seller may turn around and say a thousand dollars that you need, right? Um, and not to mention, outside of the earnest money, you know, yes, you can still turn around and charge your assignee earnest money because of course you need to get that back. So, yes, I absolutely would charge my assignee, which is my real estate investor, earnest money because at the end of the day, they still have to put some skin in the game. If I am going out as a real estate um wholesaler and I'm putting my earnest money down, and I'm out here marketing and spending my time doing the marketing, absolutely they should pay the earnest money fee just like I had to pay an earnest money fee. When it comes to the money needed for the assignee, the money that is needed for the assignee is gonna be more so um, the money that is needed is simply going to be the money that they need to close with on top of the earnest money. So that's gonna be the cash, whether it's the hard or hard money, but or any type of financing that's gonna be required. Now, as far as profits, okay, the profits that is needed for the assignor, which is the wholesaler, is the assignment fee. So as a wholesaler, you are um gonna receive an assignment fee. However, when it comes to the assignee, which is the buyer, which is your in investor, that is the profit from the property. So your profit is gonna be the profit from the property as a real estate investor, and what I mean by that is after you turn around and rehab the property and you sell the property, it is the profit. Now, if you're a buy and hold type um real estate investor slash assignee slash end buyer, then the difference is that particular money right there is going to, you know, you may turn around and say, Okay, this is gonna be a buy and hold situation. I want to put tenants in there again. Your profit is going to be your NOI that is coming in, your cap rate after everything is being paid on that property, after you're receiving um rents on that property, that is gonna be your profit. Now, when it comes to being a real estate wholesaler slash assigner, the stronger your buyer's list, the easier your business becomes. So never stop building that buyer's list, please don't like do not stop. Keep building that list, building that list, building that list. Because at the end of the day, no buyer equals no deal equals no assignment fee. So, what I want you to remember is when it comes to real estate wholesaling as an assignor, is it easy to make money? Yes, it is absolutely easy to make money, but it's really up to what you put into it, it's all up to you how much you put into it for you to grow your business. So, with that being said, I am Ebony Beacco with Home Loans Network, and this is the real estate wholesale deal platform. I will love for you to follow me on all social media platforms, and those particular links are going to be in the descriptions. And then make sure you subscribe to my YouTube channel or even the podcast for up to date videos and audios on real estate wholesaling.