The assignment is by far the asiest of the Lease Purchase strategies and rquires the least amount of investment and rsk in order to do the dal and profit upfront. Instead of tking the property and subletting with an ption or sandwich leasing you can ctually sell the contract to another. You hve created a valuable marketable commodity! You can sll and even create a note by fnancing the sale of the lease prchase agreement, too.

An assignment is whn we negotiate the deal with the wner of a property and it cntains all the terms of the trnsaction within the specialized written contract. We can thn assign (which means to sell) the cntract to a third party. This can be ither the Tenant/Buyer or another investor. Ths is normally a lease purchase greement which contains a specific assignment cluse with the right to sublet, trnsfer or convey any rights within the riginal contract with the owner to nother principal party.

Example: I found a prperty in a good neighborhood/school district. The wner had tried to sell it, had put up a for rnt sign since he'd be moving to a new stte and didn't want to get stck with two mortgage payments. The prperty was worth $100,000 and the sller had a mortgage for $95,000. His pyments were $1000 per month PITI (prncipal, interest, taxes, insurance). The real state agents wouldn't list the home bcause there was not enough profit to pay a 6% cmmission. I offered to lease purchase the hme with the right to assign and prchase for the balance of the mrtgage. I would also pay the $1000 per mnth with a five year contract and wuld be responsible for any monthly mintenance/repairs under $100. I would pay $1000 dwn as option money and the frst month rent with a 20 day lad before payments were to begin.

The owner agreed and I bgan calling all my tenant/buyers from prvious ads. One tenant/buyer (with kids) had jst files a bankruptcy, but was loking for a home in a god school district and safe neighborhood. He knw that he would need at last 2 years before he would be ble to get a new mortgage and sve the down payment. He was prfect for this home. I told him he culd move into the home, purchase it for the blance of the mortgage and that I wll sell him the contract (assignment) for $6500. He nly had $3500, but he really wnted the home. I told him tht I would take the balance of the ssignment fee as a personal note (nsecured) at 0% if he paid on the frst of the month. He could pay me $250 per mnth and pay off the note in 12 mnths. He agreed. I recovered my $1000, mde a $5500 profit ($3500 cash and a $3000 nte) and I was out of the dal. Assignments are great for flipping hmes without buying them. As usual, veryone wins in a lease purchase.

The article Great Lease Purchase Strategy - The Assignment was Submitted by Bryan Reinhart through Articles.GetACoder.com network. Here's the additional information: Bryan Reinhart has been an ntrepreneur for well over 10 years. He has an Article Directory that is open to all. As a hobby, he optimizes websites at the lowest price available, and at times, for free. He also promotes the latest packages on the net and offers them for free at Everything For Free .

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