Real Estate deals can be done in several different ways. I’m going to cover some of the most common from the easiest to the more difficult. You’ll likely not use them all, but it’s good to have an idea of the different ways you can achieve real estate deals so you don’t miss an opportunity when it arises.
Types of Real Estate Deals You Can Do:
- Assignment of Contract
- Assignment of Beneficial Interest
- Subject To
- Simultaneous Closing
- Physically Closing
Assignment of Contract
The easiest and most low risk is to do an assignment. For an assignment, you do not actually buy and sell the property. You simply get a property under contract and assign that contract over to another person who steps into your shoes and completes the contract. This is also known as Wholesaling properties. Whatever terms you negotiated, the person who you assign the contract to will abide by those terms. You will sell that contract for a higher price and that is what profit you will make for the real estate deal.
Assignment of Beneficial Interest
This is a way to assign a non-assignable contract.
This is a process where you buy real estate property and take over the existing financing. You will continue to make the payments to the seller’s mortgage company.
Another way to close a transaction is by doing options. With an option, you do not have a contract to purchase the property. You do have an option to buy the property at a given agreed upon price for a set period of time. You will give the seller money for the option which will be nonrefundable. He will be locking in the terms for you in exchange for the agreed amount.
This is having two closings the same day back to back. You will close on the property and put it in your name and then close right away to the new purchaser you already have a buy/sell agreement with. Also known as a two-time closing.
This is where you actually buy the property yourself and pay for it with your own cash or finance it. You can finance it different ways. Some ways are bank financing, going through private money lender or hard money lender.
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