With practically no money in your pocket, there is still an opportunity for you to make money in the real estate market through preforeclosures. Now, you are most likely wondering how this could be possible. The answer is simple, you can do contract assignments.
When you deal with contract assignments, you simply pass the deals you find off to actual investors and rehabber. These are the people that will hold on to the title instead of you. The primary reason for getting started in the preforeclosure business is to limit the risk to you, while still being rewarded by the immense finder’s fee that you will receive when you pass on the information about the great deals that you find.
Worth Your Time
The paychecks that you will receive from your downline investors can be rather large. In fact, it is no unheard of for people in your position to earn as much as $5,000 to $30,000 on a single deal. The trick is to find sellers that are highly motivated, put together a deal that is pleasing to the sellers, and then pass off the deal to your investors. You can make a considerable amount of money without having to take on the hassle of holding the property, rehabbing, marketing and reselling it.
A great number of investors in the real estate market are more content with the cost effectiveness of dealing with contract assignments instead of purchasing properties at a discount and holding it. It may take as long as seven or eight months of paying holding costs if the property market goes on a cold streak. With contract assignments, it may take a few weeks from the time you meet with the homeowner until you close the deal with an investor. Your profit may not be as high as if you hold the property, but you will not have to worry with as much risk.
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Hi Sean,
I’ve never even heard of preforeclosures. It sounds like a great strategy for cautious investors like me. I love low risk property options. The only real risk I see here is failing to educate yourself thoroughly about the process.
Also, failing to do your research on the properties themselves. But, it does sound like something I’d want to know more about.
I am with Jazz on this..I have not heard of preforeclosures either. The concept sounds good but I need to investigate further. Thanks for putting this article up Sean.
Just so you know, there is a typo in the second sentence of the third paragraph