Posted by Mark-NC on July 21, 2001 at 14:40:08:
It’s a pretty simple process and it is probably one of the easier ways to make money in this business.
The basic concept is; If I put a offer to purchase contract on a property and it is agreed and signed by both Buyer and Seller I now have equitible interest in that property even though it has not closed yet.
As an example let’s just say the contract price was for $50,000. I call my wholesale buyer and tell them I have a deal on a property and ask would they like to buy my contract for $3000? If they say yes, It is just a simple matter of using an assignment of contract to assign all your interest in the contract for an assignment fee.
The buyer you assigned the contract to then takes the offer to purchase contract you sold them to closing. They then use their money to close.
The bennifit is simple, you do not have to close on the property or use your money to close. You are basicly just selling contracts not the property.
I hope this helps…Good luck!