BiggerPockets

So I'm getting ready to close on my FIRST DEAL EVER next Friday.

I've been trying to do my "first deal" in real estate investing now for about 6 months. I've gone back and forth from wholesaling, to sandwich lease options, to other things. Just recently, 2 weeks ago, I learned about the co-operative assignment with lease options.Very easy it seems and the profits are pretty good..not as much as a normal wholesale type deal, but easier to do and can happen more frequently--I don't see 3 of these a month as being impossible to do!!

It's an easy, no risk type deal. Basically it works like this:

1) Find/prospect for motivated sellers willing to do a lease-option on their house
2) Find/prospect for tenants looking for a "rent-to-own" opportunity
3) Put the 2 together and collect the option fee (or 1/2 of it) as your profit!!

I realize some investors already know about this, just thought I'd share it with the newbies who might not know about this simple, highly profitable strategy...I didn't until 2 weeks ago! Good luck.

For those of you that have struggled to find your niche or have come so close to that first deal...don't quit. It's taken me a long time and I've wanted to quit, but I also want to do this so badly and if you do too, then it will happen. And this is one of the easiest ways I know how to tell you to get it done..get on craigslist...blast FSBO's and FRBO's asking if they'd do a lease option; put it under an option and find a tenant with some money to put down! Assign your option and move on to deal #2..

Team Brovitch, all he's doing is lining the people up and essentially getting a finders fee or an (assignment fee)

he never makes a payment to any lender or seller for that matter since he's just simply putting A-B together and getting the finders fee in the form of an assignment.

It's a great way to make some money.

Hey Alex,

If you really want to increase your profits then I'm about to tell you an advanced tactic that you need to add to your mix.

First check to see if your state is land contract friendly. In mine I don't have to do a foreclosure its written into the contract that the contract will automatically terminate and they will be evicted as a tenant at sufference.

As you know a married couple can get an $8,000 tax credit or up to $4,000 for a single.

A land contract is an installment sale. Make sure you paperwork has all the correct language but you can require that the buyer pay the Seller a portion or all of that tax credit as a downpayment.

Have the buyer you find go to your CPA. Fill out the appropriate form to amend their taxes. Put in your bank account and routing number so the funds come to your account.

Disburse the funds accordingly to whatever was agreed upon between all parties.

Its more work but it can increase your income per transaction.

And yes its all legal. I've had my CPA call the IRS and my Attorney verify that we could put our account number as the deposit. However, check with your CPA and Attorney first!