Assignment of Contract Real Estate (What it is and What it's Not!)

[@nightdriver1517]

You did a great job explaining, thank you!

[@mytayaallen3137]

This information was right on time thanks brother

[@Fieldsforland]

What do I do after they both sign it

[@lastjester5109]

So U sign as the buyer first then sell that contract with someone wanting to Buy the property Right????

[@InvestorLifeInc]

@@lastjester5109 yes, you sell the contract you negotiated...

[@lastjester5109]

@@InvestorLifeInc I am guessing they become the buyer ( The person who buys the contract from you) right?

[@tiffanyyoung1216]

@@lastjester5109 right 👍

[@melanielewis6553]

Outstanding explanation of assignment of contract! Thank you

[@InvestorLifeInc]

Glad you enjoyed it!

[@CleitonSchneider]

Great intro to the concept! Thank you!

[@InvestorLifeInc]

You're very welcome! :)

[@williamcunningham1614]

Thank you

[@InvestorLifeInc]

You're so welcome. Cheers!

[@agatolwey6218]

Why would someone sign a contract of promises to then. Let you sell the commitment to that contract to someone else. Which means you never intended to see the commitment through, but instead find someone else to. It seems like an added layer of work and tike loss for the home owner.

[@InvestorLifeInc]

@@agatolwey6218 so, the owner of the property usually doesn't care who the ultimate buyer is, as long as they have the property sold and get the money. There is no extra work or time on their behalf as the only difference is a different name on the contract. This strategy usually works well in a buyers market, when sellers don't have too many other options.

[@LeAndreWatts]

Thanks bro 🎉 Great Content 🫡

[@InvestorLifeInc]

Thanks right back at ya!! :)

[@derick3482]

then why would you want to be involved in something you're not going to get the property at the end? ? ?

[@InvestorLifeInc]

The purpose of assigning contracts is to make an income... Full time investors usually don't make a monthly income high enough at the beginning of their business to support themselves, so it's a way to make money for finding good opportunities and matching them with other buyers

[@derick3482]

@@InvestorLifeInc ooookaaaay, so let's say the investor can't full-fill the promise of completing the sale the condo he or she bought two years ago ... paid a deposit of $100k to pay the remaining $300k [of the $400k] by the completion of the condo now there is an opportunity for taking over this contract ? is that what we are talking about? or would that be assignment of sale? a different topic?

[@InvestorLifeInc]

That could be an instance where an assignment of contract could take place, yes, there are hundreds of scenarios where it can happen... We use to negotiate deals on properties, get it under contract, then sell that contracts for a fee and make $5-20k for selling a great negotiated deal

[@derick3482]

@@InvestorLifeInc but isn't this a job for the lawyer to do ? ? I really don't get it. I can see how the SELLER of the property wants to avoid going through with the transaction and avoid land transfer fees etc or cash out as much as possible and let the other person deal with it but again wouldn't you as a buyer need to have A LOT OF CASH too in order to be able to complete the sale? or are you just talking about buying a contract and selling the contract to someone else? but what's in it for the next person?

[@InvestorLifeInc]

So, let's say a house is for sale, you as the buyer, negotiate a deal on it, you pay a $5k deposit, now you offer that deal to other investors... You save the ultimate buyer the time, effort of finding the deal, negotiating the terms etc... The seller is happy cause their house is sold, you are happy cause you just made $10k and got your $5k deposit back, and the ultimate buyer is happy cause they have you doing all the searching and negotiating for them