Why Be an assigner?
Being an assigner, like a bird-dog (see "How to Be a Bird-Dog" post), is a relatively easy way to get started in real estate investing. In fact, assigning a contract is one of the fastest ways to profit from a real property transaction. An assignment can generally be concluded within 30 days. An important advantage is that you can make money from assignment deals without ever owning the properties.

Doing assignment deals is a low-risk form of real estate investment, because the capital you need to invest is limited to a few hundred dollars. You may even be able to do some deals for $100 or less, depending on how you negotiate.

What is a Contract Assignment?
A contract assignment is a technique that allows you as the assignor to transfer your rights and interests in the property to an assignee. The contract assignment is documented in an agreement that enables you to sell your rights and interests for a fee. It also enables the assignee to take your place as the new owner of the property. 

How Assignments Deals Work?
An assignment deal begins when you prepare a contract to purchase a property and the seller accepts it. Once the seller accepts (signs) the contract, you can then assign it to a buyer for a fee.  The assignment deal ends when all three parties: the seller, you (assignor), and the buyer (assignee) attend the settlement. The seller gets paid for the property, you get your assignment fee, and the buyer gets the property.

Assignment Example
Let’s say you found a property worth $100,000 that you could buy at 65% of value or $65,000.  You decide to write a contract for $65,000 and you offer the seller no more than a $1,000 deposit, with the balance of $64,000 due at settlement. 

You could assign your contract to an interested buyer for a fee of $5,000, and let the buyer take your place as the potential owner. The buyer would have to come up with $6,000 to participate in the deal. This includes $1,000 to the seller to cover your initial deposit, and $5,000 to you for the assignment fee.

"And or Assigns"
The first document in a contract assignment is the Purchase Contract. In a typical contract, you would enter your name as the buyer and the owner’s name as the seller. To setup the assignment, you would simply add the phrase “and or assigns” next to your name on the contract. If for example your name was John Doe, you would write “John Doe and or assigns” as the buyer. This simple phrase gives you the ability to assign the contract to another buyer.

 
Assignment of Contract of Sale
The second document is the Assignment of Contract of Sale. The assignment contract is a simple, 1-page document that identifies the assignor, assignee and assignment fee.

Note: You should expect the buyer to give you a deposit when accepting your assignment. In this example, you could specify a $2,500 deposit, with the $3,500 balance due at settlement.  The $2,500 would cover the $1,000 that you paid initially and provide you with $1,500 of immediate profit. Not a bad way to get started.

Settlement
Settlements for contract assignments are three-way events, involving the seller, you and the buyer. However, everyone doesn’t need to be there at the same time. The first part of the settlement can be conducted between the seller and the buyer. You can attend at a different day and time to collect the rest of your $3,500 assignment fee. How sweet is that?

All You Need to Get Started
The above example illustrates how straightforward it is to make money as an assigner. You need very little cash to do assignments, and you can collect your assignment fees fairly quickly. If you’re not comfortable preparing contracts, you can get a real estate agent to help you. You won’t have to pay for this help, because the agent’s commission is paid by the seller. I'm telling you from experience, it doesn't get much easier. Get more details at www.foreclose.com.