Contract Assignment Case Study – Flipping Contracts

October 20th, 2009

Stanley Gallor wanted to try his luck with real estate. He heard that flipping, especially fix and flip method is very much rewarding and profitable. However, he did not have the fund to get started with. While talking to another investor in the neighborhood, he came to know about flipping real estate contracts and the process sounded sensible. He reacted promptly; he contacted a seller and entered into an agreement to buy the property for $100,000. Then he started searching for another buyer and an old pal Bryan came to help him. Bryan wanted to buy the property; hence, Stanley assigned the contract to Bryan and Bryan paid $5,000 assignment fee. Now, Bryan will buy the property for $100,000 from the seller and Stanley is left with $5,000 profit without Real Estate Investing a single penny.

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