Introduction
Waiting until closing day to get paid can strain even the most experienced wholesalers. Whether you’re trying to lock up your next deal, pay a marketing invoice, or keep your acquisition pipeline moving, slow paydays limit your growth.
That’s where assignment fee advances come in. When properly secured—often by the Earnest Money Deposit (EMD) from your end buyer—this strategy allows you to access part of your fee before closing, without waiting on title or funding delays.
In this article, we’ll break down what assignment fee advances are, how they work, and why savvy wholesalers are leveraging this strategy to scale faster.
What Is an Assignment Fee Advance?
An assignment fee advance is a short-term joint venture funding solution that allows a wholesaler to receive a portion of their assignment fee upfront, typically before the deal closes.
It’s different from a loan. There are no long-term repayment terms. Instead, the advance is repaid from the proceeds of the closing, often within days. The funding is secured by the buyer’s EMD, which acts as the deal’s protective collateral.
📌 According to FortuneBuilders, successful wholesalers often close deals quickly—but tight cash flow can be a major bottleneck. Assignment fee advances address this.
How It Works
Here’s a typical workflow of an assignment fee advance in a wholesaling deal:
- You secure a property under contract with a motivated seller.
- You assign that contract to a cash buyer for an assignment fee.
- The buyer places their Earnest Money Deposit (EMD) into escrow.
- A funding partner (like us) provides you with an advance on your fee, secured by that EMD.
- At closing, the full assignment fee is paid. The advance is deducted, and you receive the remainder.
📌 BiggerPockets notes that assignment fees typically range from $5K–$30K per deal, meaning even a partial advance can bridge serious cash flow gaps.
Who Uses Assignment Fee Advances?
This strategy is perfect for wholesalers who:
- Have strong deals in escrow but need working capital now.
- Want to fund marketing or acquisitions while waiting for closings.
- Are scaling rapidly and need to maintain deal volume without slowing down.
- Work with end buyers who consistently submit EMD on time.
This strategy is most effective when the wholesaler has a trusted buyer network and a solid closing track record.
Benefits of Assignment Fee Advances
✅ Faster Access to Capital – No more waiting 2–4 weeks to get paid.
✅ No Personal Credit Required – Approval is based on deal strength, not your score.
✅ Scalable – The more deals you do, the more capital you can unlock.
✅ Low Risk – Advance is secured by a hard asset (EMD in escrow), not a personal guarantee.
✅ Flexibility – Use funds for marketing, skip tracing, paying team members, or locking up your next deal.
📌 As The Close points out, access to cash flow is often the difference between inconsistent closers and top-producing wholesalers.
What Are the Risks?
Like any funding tool, this strategy has a few caveats:
⚠️ If the deal falls through, the advance may need to be returned.
⚠️ Some buyers may delay EMD funding, slowing the advance timeline.
⚠️ The advance amount is usually a portion (not 100%) of the full fee—often 40–70%.
The best way to mitigate these risks is to work with buyers who perform, and funders who understand how to structure secured advances against the EMD.
Final Thoughts: Turn Your Next Contract into Immediate Capital
If you’re wholesaling and tired of waiting until the closing table to get paid, an assignment fee advance could be your secret weapon. With the deal’s EMD securing the capital, you can get funded now, even if title is still clearing or the buyer hasn’t closed yet.
🚀 Need access to your assignment fee before closing? Let’s get you funded.
👉 [Apply for an Assignment Fee Advance → Your Website CTA]