Profitable Property Contract Assignment

Contract assignments are probably the simplest and least complex profit generator of the property profit models.If you're short on cash or don't want to finance properties this profit model is a great opportunity. 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.

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 executed, you may sell that contract to a real investor or rehabber that will take possession of the property.

There are many types of homeowners that will be willing to negotiate a contract assignment type of arrangement with you.One great source are homeowners in preforeclosure.

Were assuming the owner your talking to has no means of continuing monthly 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.

Is there enough equity in the home to make the deal attractive to a real investor?

Typically you may offer to pay off the mortgage in full including back payments. Also, keep in mind you'll be making an offer of about 70% under market value to make it attractive to your down-line investors.It's also reasonable to offer exit cash to the owner of a couple thousand dollars depending on how much equity the owner has built up.So when you assign the contract to a real buyer who actually takes title to the property, 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.

This is a simple example. It will make you stand out to buyers and sellers is how organized and professional you deliver your information.