Assignment of Contracts

[irealestate]

Hi there everyone!

I`ve poked around the forums for awhile and couldn`t really spot an answer so I`m hoping that I may ask your opinion on assignment of contracts?

Assignment of contract questions:

1) Is this viable in today`s canadian market?

2) Have you done one before and if yes what was your experience like?

3) What is a reasonable assignment fee?

4) Is there anything pro/con good/bad I need to know about this?

5) What in your opinion is the key for a great assignment deal?

Me and my wife are looking to get into the real estate investing market and have a small nest egg and I don`t want to blow it.

Thank you so much.

Ian

 

[GaryMcGowan]

QUOTE (irealestate @ Aug 11 2010, 01:53 PM) 5) What in your opinion is the key for a great assignment deal?

YOU MUST LEAVE money on the table for the next guy.

In order to assign contracts you also need to have somebody or many people that will want what you have. You need to build a buyers list and you need have great negotiation skills in order to get to a purchase price that will allow for assignment fees. The most overlooked item is you have to be attracting motivated sellers that want to sell or have a home that is in need of work. This sounds easy to do but it is not. It takes allot of time and work. knocking on doors, advertising, and saying the right things.
Good assignment fees run between 5-10k.
Like I said "leave some on the table for the next guy"

 

[irealestate]

Hey there Gary!

Thanks so much for the insights. That`s what I was guessing. That really in order to make it really work you need to have a list of people that are truly in need and have committed to these types of services. I think maybe going as far as getting fees in advance.

 

[BrianPersaud]

QUOTE (irealestate @ Aug 11 2010, 01:53 PM) Hi there everyone!

I`ve poked around the forums for awhile and couldn`t really spot an answer so I`m hoping that I may ask your opinion on assignment of contracts?

Assignment of contract questions:

1) Is this viable in today`s canadian market?

2) Have you done one before and if yes what was your experience like?

3) What is a reasonable assignment fee?

4) Is there anything pro/con good/bad I need to know about this?

5) What in your opinion is the key for a great assignment deal?

Me and my wife are looking to get into the real estate investing market and have a small nest egg and I don`t want to blow it.

Thank you so much.

Ian


Assignments are done all the time. OREA even has assignment forms to do deals. Fees depends on the deal...a good deal is something that someone could easily see and you just step out of the way to make it happen.

Example: a property that is substantially under current market value