JAN 22 2023 - ASSIGNMENT OF REAL ESTATE CONTRACT EXAMPLE

Wholesale real estate is a method of investing in which an investor, also known as the "assignor," finds a property that is being sold at a price below market value. The assignor then enters into a purchase contract with the seller, known as the "original contract."

Once the assignor has secured the contract for a below-market price, they can then sell the contract to another investor, known as the "assignee." The assignee then steps into the shoes of the assignor and becomes the buyer under the original contract. The assignee is then responsible for closing on the property and assuming all the rights and responsibilities outlined in the original contract.

One of the benefits of wholesale real estate is that it allows investors to purchase a property at a lower cost than its market value. This can be achieved through various means, such as finding properties that are in need of repairs, are in foreclosure, or are being sold by motivated sellers.

Assignment of contract is a common technique used in wholesale real estate. It allows the assignor to profit from a property without ever taking ownership of it. The assignor can make a profit by charging a fee to the assignee for the right to purchase the property at a below-market price. This fee is known as the "assignment fee."

In order for an assignment of contract to be valid, it must be in writing and all parties must sign it. It is also important to note that the original contract must include a clause that allows for the assignment of the contract.

Another benefit of wholesale real estate is that it allows for a relatively low barrier to entry. Unlike traditional real estate investing, which can require a significant amount of capital and credit, wholesale real estate can be done with very little money down. This makes it a popular choice among new investors who are just starting out in the industry.

However, it is important to note that there are certain risks associated with wholesale real estate. One of the biggest risks is that the assignee may not be able to close on the property. This can happen for a variety of reasons, such as the assignee not being able to secure financing or the property not passing inspection. In these cases, the assignor may be held liable for any damages incurred by the seller as a result of the assignee's inability to close on the property.

In conclusion, wholesale real estate is a popular method of investing that allows investors to purchase properties at a below-market price. By using the technique of assignment of contract, investors can profit from a property without ever taking ownership of it. However, it is important to be aware of the risks and to have a solid understanding of the legalities involved in the process.

For new investors, networking with more experienced investors can be a critical factor in successfully evaluating and investing in real estate. To learn more about evaluating investment properties and to meet other experienced investors, consider attending the Benjamin Z Miller investor networking group, which meets each Sunday. This group can provide valuable information and resources to help you make informed investment decisions.

A good starting point would be to get more education. If you would like to learn more about investing and other related topics, just go to www.benjaminzmiller.com

https://www.meetup.com/benjamin-z-millers-investor-networking-group/

Benjamin Z Miller
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