1) you tie a property up under contract at a price that will allow a profit for you and the person you're going to sell it to. make sure you give yourself enough time to close (30-60 days).
2)submit your contract to your title company and have them run a lien search.
3) find your buyer (i.e via your buyers list, ads in the paper, word of mouth, etc)
4) you have your buyer now, NOW get a deposit from him/her, and schedule a closing date as soon as possible * the sooner the better* ( make sure your buyer can close with cash or hard money)
5) inform your seller of the impending closing date.
6) now you attend closing to sit back and watch your buyer close with your seller. you get your nice check/assignment fee (shows up as an expense on the buyers side) /
7) now you put your check in your account and hope it clears
8) go shopping, or just stack it up and buy more Real Estate
At some point, you have to actually assign the contract to the buyer, too.
That would be after you find your buyer. You have the title search done, you have the buyer wanting to buy, then you sign the Assignment of Contract with the buyer, in return for the assignment fee the buyer pays you. Then the buyer closes with the seller.
an assignment can also be defined as the sale of a contract. It is also recommended that you have a list of potential investors before trying this form of REI. my 2 cents.
[addsig]
im a newbie too, but this is what i know.
1) you tie a property up under contract at a price that will allow a profit for you and the person you're going to sell it to. make sure you give yourself enough time to close (30-60 days).
2)submit your contract to your title company and have them run a lien search.
3) find your buyer (i.e via your buyers list, ads in the paper, word of mouth, etc)
4) you have your buyer now, NOW get a deposit from him/her, and schedule a closing date as soon as possible * the sooner the better* ( make sure your buyer can close with cash or hard money)
5) inform your seller of the impending closing date.
6) now you attend closing to sit back and watch your buyer close with your seller. you get your nice check/assignment fee (shows up as an expense on the buyers side) /
7) now you put your check in your account and hope it clears
8) go shopping, or just stack it up and buy more Real Estate
At some point, you have to actually assign the contract to the buyer, too.
That would be after you find your buyer. You have the title search done, you have the buyer wanting to buy, then you sign the Assignment of Contract with the buyer, in return for the assignment fee the buyer pays you. Then the buyer closes with the seller.
an assignment can also be defined as the sale of a contract. It is also recommended that you have a list of potential investors before trying this form of REI. my 2 cents.
[addsig]
I agree with patrece james I would have my buyers lined up before I retained control of the property.