10 ROADS TO REAL ESTATE INVESTING PROFITS TAMERA ARAGON
9. Assignments:
This strategy has you getting into a property at a discount, preferably with a known buyer in
place, before you commit to your purchase. After you are in contract to purchase a property, you would sell
your contract for a fee to someone else. For example, you get into a purchase contract to buy a $120K
property for $100K. You turn it to an investor for $110K and profit $10K cash without the cost and hassles of
ever closing on the deal.
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Advantages: This is a great way to make quick cash with low, or no upfront investment, low risk,
and fewer headaches from closing and ownership. This strategy creates a win win win outcome for
everyone involved.
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Disadvantages: This will only work if the property you are buying has equity so that you may buy it
at a discount. In declining markets, this type of property is harder to find. Also, when dealing with
banks on REO’s or Short Sales, you will find they will not allow you to assign your contract.
However, there are ways to get around this if you plan and handle the contract correctly up front. Do
you want to know how I have managed to get around not being able to assign a contract? I have
purchased properties in the name of an LLC set up exclusively to buy properties. I then sold the LLC
to someone, making them the owner of the LLC, therefore making them responsible for closing on
the purchase contract and end buyer of the property.