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Lesson 6 of 15

Understanding Spread

Your profit in wholesaling - the difference between what you pay and what you sell for.

What is Spread?

Spread is your assignment fee - the profit you make when you assign your contract to an end buyer. It's the difference between your contract price with the seller and the price your buyer pays.

The Spread Formula

Buyer Price - Your Contract Price = Your Spread

Real Example

Your contract with seller: $160,000
You assign to buyer at: $175,000
YOUR SPREAD: $15,000

Typical Spread Ranges

$5K - $8K
Starter Deals

Lower-priced properties, competitive markets

$10K - $15K
Sweet Spot

Most San Antonio deals land here

$20K+
Home Runs

Deep discount, high-value properties

How to Maximize Spread

  • 1.Negotiate harder with sellers - Every $1K lower = $1K more profit
  • 2.Build a strong buyer list - Competition among buyers raises prices
  • 3.Accurate ARV - Underestimate ARV = leave money on the table
  • 4.Target distressed sellers - More motivation = deeper discounts

Key Takeaway

Spread is your paycheck. Build it into your MAO from the start. Never assume you'll "figure out" profit later - know your spread before you make an offer.

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