After listening to a cd by Ron Legrand I am thinking of focusing on assigning contracts from homeowners who are underwater and helping them put a renter in their home who will take over their mortgage and pay for repairs. The renters will generally be people with bad credit who can't get mortgages but who are able to pay.
Has anybody here tried doing this? Have you run into any problems? I think I'm going to jump in pretty soon here.
This is a strategy that is very hard if not impossible to truly make happen.
Where is the person who is under water going to move? People with bad credit most often cant or wont make any repairs so when there is a big problem they will up and bail out.
How would you get paid doing something like this?
Thanks for the reply, It's helpful for thinking this through. Are there any strategies that aren't very hard to do though?
I would be looking in nicer neighborhoods, and the tenant with bad credit would be required to put up a downpayment and agree to a long term lease. I would be paid an assignment fee. I suppose they could have good credit too and just not want to pay interest on a mortgage.
As for where the seller will move, I could have the buyer agree to wait 30-60 days so the seller can move out. Maybe they will have already moved but don't want to deal with a typical tenant. So they could move wherever they wanted... Again, I'm talking about the nicer neighborhoods, not the poorer areas.
If real estate investing was easy, everyone would do it (think 2006, 2007). These get rich strategies are just making the gurus rich quickly. Those that can do, those that can't sell a seminar. There are two sure ways to make money as a real estate investor:
Buy low and sell high
Buy and hold
It's that simple. Doing anything else isn't being a real estate investor, it's being a person in the real estate business, such as a real estate agent, or loan officer, or escrow company or property management company. These people make money based on the value they bring to the real estate deal.
So ask yourself, what value (to the seller and the buyer) do you bring to real estate doing lease assignments? If you have to think too hard, then the answer is "none". Pick a different "strategy" and move on.
God Bless You!
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