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Method III
In my area, the first two methods are primarily used for foreclosures, bank owned and distressed properties. The next method is used the most for Regular purchases and pre-foreclosures.
The third method is to “Assign the Contract”.
What this entails is for you to find a property. You then make arrangements with the owner to purchase the property at an agreed amount.
Once the contract is signed and past the three day attorney review, you can now find another investor or regular buyer to purchase that contract from you.
What makes this legal is you must have a clause in the contract stating you can assign the contract.
You then have to sign an Assignment Agreement along with the person who is purchasing the property from you.
How Do You Make Money?
The way you make money is you raise the price of the contract for the buyer.
For instance:
Let’s say you signed a contract to purchase a home for $100,000. You know the house will actually appraise for $150,000.
You want to walk away from the deal with $20,000. So what you do is assign the contract for $120,000 ($100,000 purchase price + $20,000 profit).
You never want to max the house out. Meaning, never assign the house for exactly what it is worth. You always want to make the deal appealing to everyone involved.
The end buyer will not care that you raised the price for $20,000 because without you they would not have access to the home, plus, there is still $30,000 worth of equity in the home.
These are all great ways for you to purchase homes with no money down and no money out of your pocket.
You have to find what method is a good one that fits your needs and make it happen for yourself.
Click here to find out my favorite method!