Posted by pteuscher on June 04, 2007 at 21:10:42:
Here is an example of my typical assignment.
Get property under contract for 100k. I know that the property is worth 195k after about 10-15k in repairs. I then â??sellâ?? the property for 120k. I then tell the buyers (rehabbers) that i want to assign it because i would rather not double close and its easier for the both of us. They agree. I then draw up an â??assignment of contactâ?? for 15k (because they talked me down 5k). This way they do not care because you set up a price and they are accepting to buy at that price. A good rehabber doesnt care what you are making as long as it fits his criteria and he knows what he has to get it for.
As far as finding themâ?¦I have found that they come a dime a dozen. Go to the CTREIA meetings and meet people. I found one near me that rehabs about 30 properties a year and will buy anyitng i put in front of him. I actually did an assignment with him a couple of months ago where he didnt even go into the house. He had his wife drive by it and he said â??Ill take it!â??
I guess the main thing is that you find a good rehabber and network. I have done about 4 or 5 assignments with the same guy now and thye all go smooth. I know exactly what he wants and i know what i want. I name a price and he says yes or no.