Real Estate Contract Assignment – Create Wealth No Experience Or Cash

May 20, 2010 by srgproperty
Filed under: real estate investor

Contract assignments are probably the simplest and least complex profit generator of the real estate profit models.

Basically it’s an excellent way for those looking to get into real estate with zero to very little money . So if you’re struggling for cash or don’t want to finance properties, this profit model is a a great foot in the door . This is fast becoming a popular second career because it’s so simple for you to get started. Basically all you need is motivation, basic marketing knowledge, and basic knowledge on how these deals work.

So how do contract assignments work ?

A contract assignment happens when you negotiate a sales contract with a homeowner to purchase his or her home, never intending to take possession or title of the property, .

Once the contract is properly agreed on and signed, you may sell that contract to a real investor or rehabber that will actually take possession of the property.

You will profit in the form of an assignment fee that is paid to you by the investor. Typical fee is about $500-$3000 per assignment.

How do you find properties that are suitable for you to assign?

You can find several sources of homeowners that will be Cialis willing to negotiate a contract assignment type of arrangement with you.

One great source of leads are homeowners in preforeclosure.

We’re assuming the owner you’re talking to has no way to keep up with the payments . It could be due to many things, job loss, divorce, injury or a spouse passing away, more than likely they have missed a few house payments as well.

Your job as a contract assignment consultant is to evaluate the deal on many levels.

The first thing you need to find out is… “is there enough equity” in the home to make the deal attractive to a real investor? Equity is difference between what the house will sell for “after repair” and what the investor actually pays for the property.

Keep in mind…you are providing a solution to the distressed homeowner’s problem. Typically you may offer to pay off the mortgage in full including back payments. This keeps a foreclosure OFF the homeowner’s credit history.

Once you run the numbers you’ll be able to make an offer to the homeowner that will pay off the existing mortgage , plus gives them some exit cash.

So when you assign the contract to a real buyer who actually takes title to the property, a closing date can be set and the foreclosure stops as well as stopping further damage to the owners credit plus giving the owner some breathing room in the form of cash to pay bills or move.

Your investor is happy too, because he has a below market price property to sell or rent and you collect a fee for bringing the buyer and seller together.

This is a simple example of a real estate contract assignment. What will make you stand out to buyers and sellers is how organized and professional you deliver your information.

So how can you start really earning money assigning real estate contracts?

Why not learn how to find and assign real estate contract assignments the right way, you can be doing your first deal in 30 days.

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