Submitted by: Kevin P Sullivan
How to make money in today’s real estate market using creative finance techniques.
When we think of real estate and investing, I think most would agree that the green paper monster quickly rears its fear-provoking head: MONEY…Many of us dismiss a career in real estate investment at that very moment – for those of us that stay on board, the next question we look to be answered: where do I get it?
There certainly are more than a few ways to finance a deal that involves money (unfortunately requiring the permission of those that lend) – conventional, hard money, private…but let’s focus our time instead on how we can make money in real estate RIGHT NOW without having to visit your friendly local lender first.
So here we go; you have sent out your mailers, hung a ton of signs, and even knocked on a few doors – then BAM it happens – you find a motivated seller that wants to work with YOU. Once your knees stop shaking, you gather your signed contract from the seller and float your way back to the office. Perhaps even call a few associates to pass along in detail how you are providing value in your community by helping property owners out of what may otherwise be a hopeless situation …NOW WHAT?
As a beginner in the real estate investment game – like many of us do – you may have spent the majority of your time looking for THAT FIRST DEAL and nary a moment on finding the necessary financing in order to close on your first deal.
ASSIGNMENT: That contract you are holding in your sweaty hand can be assigned to a third party! This means you don’t need to find financing and close before that very tight time line window you no doubt put into your contract -closes. By transferring your rights under the contract to a third party, you are simply selling the terms you have agreed upon with your seller to someone else.
Assuming that the contract represents a good deal for the buyer, giving up your buyer rights means you are giving up something of value. For this value you deserve to be compensated don’t you? Conversely, the assignees – the person to whom you assign these rights, gains some measure of value (a good deal on the property), which indeed must be paid for.
There is no set amount for the assignment fee. It can be considered as more than a finder’s fee, since you not only find the property but also negotiate a contract. It has a lot to do with the value of the property involved, and might range from somewhere between $1000 – $10,000 or more.
Assigning a contract , or wholesaling, works for everyone involved: the seller is relieved of their property headache, you get paid for signing up great terms, and the end buyer gets a great property to rehab or live in.
Kevin Sullivan is an active real estate investor and owner of Maplegate Realty.
Please visit http://www.maplegaterealty.com for more Real Estate Tips.
About the Author: Kevin Sullivan is an active real estate investor and owner of Maplegate Realty.Please visit
for more Real Estate Tips.