Free Real Estate Assignment Of Contract

An assignment of contract is a common strategy used in real estate transactions, particularly by wholesalers. Here's how it works:

1. Initial Contract: Initially, the wholesaler enters into a purchase agreement with a seller to buy a property at a certain price. This contract is often contingent on finding a buyer within a specified timeframe.
2. Assignment Agreement: Instead of closing on the property themselves, the wholesaler assigns (transfers) their rights and obligations under the original purchase agreement to another buyer, typically an investor.
3. Assignment Fee: In exchange for assigning the contract, the wholesaler usually receives an assignment fee from the new buyer. This fee is typically negotiated upfront and paid at the time of closing.
4. Closing: The new buyer steps into the wholesaler's shoes and closes the transaction with the original seller. They fulfill the terms of the purchase agreement, including the purchase price and any other conditions.
5. Profit: The wholesaler earns a profit from the assignment fee without ever owning or financing the property themselves.

Overall, an assignment of contract allows wholesalers to profit from real estate transactions by effectively flipping the contract to another buyer, avoiding the need for financing or taking ownership of the property. It's a flexible and low-risk strategy often used in wholesaling.