Thursday, July 2, 2015

Assignment of Contract

Usually when people start talking about making money with real estate they go straight to flipping. Flipping is buying and selling a house at a profit. We see lots of different tv shows on the topic and it makes it look so easy. Let’s look at a number of different strategies and see how people can make money with real estate.
Short Term Strategies: Assignment of Contract. Many people have limited options but still want to make money at real estate. One of the more common and easier strategies to employ is to use the assignment of contract. This is where a person gets a property under contract and then turns around and sells that contract to someone else at a profit. This isn’t where people make the most money but it works in situations where investors have little or no money to put down. Here’s an example: You see a home for sale in your area and know that the owner really needs to sell the house. In an Assignment of contract situation you will want to offer a bit lower on the property. If the house is listed at 300k and is worth 300k then you can offer 280 on the house. If you get the home under contract at 280 you are then able to turn around and sell that contract to someone else for a certain fee. For me I was able to make around a thousand dollars a couple times using this strategy.

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