Contract Assignment
I'm going to look at a property today. the e-mail stated that he is selling on a "contract assignment".
What does that mean?
I'm going to look at a property today. the e-mail stated that he is selling on a "contract assignment".
What does that mean?
It means that he already got the property from a (usually) distressed buyer , and that he is offering it to you at a higher price than what he paid. You sound like you're fairly new at this stuff. No offense intended. It also indicates to me that you should be VERY careful in looking at this place. Your "opponent" in this deal is an investor, not an amateur. Nothing against the wholesalers out there, and it may be a GREAT deal for all I know. That said, it's always wise to "know thy enemy".
My order of preference in who I buy from (best to worst):
original owner -
orginal owner of investment property (they owned a rental or something)
bank
another investor assigning a contract
This is just common sense. The original owner is the most likely to give you straight info, and they are more likely to have needs that make them "have" to sell. If its an original owner of a rental, however, they are more "shark-like" and not always inclined to give you the straight info on a deal. A bank usually doesn't have to sell immediately in the case of an REO, but they are often ignorant of the true situation of a property. Sometimes this helps. Lastly the other investor that has a contract to buy the place, and is trying to sell it on assignment. He needs this place sold before the time runs out on his contract. Once his time runs out, he either has to put up money or financing (which he may not have) or he loses all of his hard work, and doesn't complete the contract and buy the place.
Either way, in a situation like this, time IS YOUR FRIEND. Take your time. It is your opponent's enemy. Do not go into this thinking "someone else may get this deal". Talk with the person, learn from them. If it's a good deal, then consider it. Good deals come around all of the time. Especiallly in the case where they want to assign the contract, take all the time you need and then some, no matter what they say.
-Jeff
"Assignment of contract" is simply a legal conveyance of A's contract rights to B.
e.g. if I have a right to buy Blackacre for $1,000, unless it's specifically prohibited by my contract, I can sell & assign you my rights...so YOU can now buy Blackacre for $1,000.
thanks for the info.