Investing in Real Estate 2 - Assignments
This blog will discuss a type of real estate investment, assignments, in the College View area in Denver.
What this investment is: An investor who is interested in Assignments gets a property under contract for an attractive price then assigns the contract to another buyer, usually another investor. The first investor will be paid a fee for the work. If you don't have much equity to work with, and/or if your credit power is limited, assignments can be a way to get started in real estate investing. You will need to have a strong "sales" personality to succeed at it, though.
Equity needed: None, just earnest money.
Importance of credit: Not important, since you are not purchasing the property yourself.
Importance of experience with contractors: Not important. The person that you ‘flip' the property to will be doing the work.
Important of experience with property managers: Not important. The person purchasing the property from you will be managing the tenants.