HomeVestors Reveals How Wholesale Real Estate Investors Use An Assignment Of Contract

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Wholesale investors don’t need a great deal of capital when using an assignment of contract, in order to find a buyer.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years. The company knows that wholesale real estate investors who use an assignment of contract, to flip property, can do so, with limited up front capital and without having to go through closing. If they have the ability to research and find properties that are being sold by desperate sellers who want to get rid of their property, they have the ability to earn a few thousand dollars, when flipping it to another buyer.

After a seller has demonstrated interest in selling a property at a steep discount, offer to purchase it by filling out a contract. When signing the purchase contract, be sure to sign it and follow it by writing, “or assigns”, while also checking the box next to “Assignable.”

At this point, sellers are going to require a deposit that can be as small as $10. Some will request a great deal more, but never go higher then $50 in order to reduce the upfront risk. An investor can either give this directly to a seller or choose to place the funds in an escrow account, that is to be release to a seller upon closing.

After this, a buyer has a certain period of time in order to inspect the property before committing to the purchase. This is the time where a wholesale real estate investor searches for a buyer who is willing to purchase the property and pay an assignment fee. This assignment fee is to be determined by the investor and shouldn’t be too high, considering that both a buyer and a seller are going to be aware of it. Anything from $1000 to about $5000 is generally all right, but these fees can be subject to scrutiny.

If an investor cannot find a buyer for the property during this inspection period, they can simply back out of the contract and get their deposit back, making this a relatively risk-free real estate investing technique.

After a buyer has agreed to both the sale price and the assignment fee, the assignment of contract can take place. After finding an attorney willing to mediate the assignment of contract, fill out the contract that waives an investors right to purchase the property. At this point, a buyer pays for the property and the assignment fee, earning an investor a decent chunk of change.

In the real estate investment field nothing is impossible for a motivated, educated investor, even one who doesn’t have a great deal of capital to their name. The assignment of contract technique gives testimony to this statement.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties. Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community. In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction. For more information, visit www.HomeVestors.com.

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