Assignment or Wholesale Real Estate
We just completed an assignment on 170 Nottawasaga St in Orillia. Assignments are great ways to "be" in the real estate business without having your license. Simply put, you put under contract under valued real estate properties. It's like you become a wholesaler. You buy low, then sell with a small assignment fee attached. You do this by sourcing out good valued properties, complete a purchase and sale agreement, and hopefully before you waive conditions, you "assign" the contract to another investor. This can be tricky as in this case we waived conditions without securing an assignee yet. We bought the property well under market value so we were confident we could find a assignee. I would not recommend doing this under normal circumstances. Once you waive, you have the possibility of losing your deposit and being sued by the vendor. What kind of properties are best? Every area s different as the micro-economics are different, but in the Georgian Bay, Simcoe, Barrie, Orillia areas there is a strong demand for cash flow properties so we look for investment properties with a strong cap rate of 10% or more. Multi-residential and commercial properties work well as in most cases your "assignee" is looking for an investment. However wholesaling residential properties can be lucrative as well. If you would like more information on doing real estate transactions such as these please contact us.
MANA REAL ESTATE GROUP
Your Full Service Real Estate Team . We do investments, property managing and for sale by owner ( fsbo) real estate in the Barrie, Orillia, Midland-Penetang, areas. Also Collingwood, Innisfil, Wasaga Beach, Alliston, Owen Sound, Parry Sound, Muskoka, Gravenhurst, Bracebridge, Honey Harbour, and Parry Sound areas
http://www.manainvestments.com/
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