It's all the rage, this brand new investing strategy that is changing the way "investing for beginners"investors think about making quick, risk free profits that perfectly take advantage of the new economy. It's called a mortgage assignment; pioneered by revolutionary "investing for beginners" guru Phill Grove with his Mortgage Assignment Profits System.
Let's face it, the rules have changed, the old days of flipping houses in ever increasing markets or getting bank loans to fund rental properties is over and new strategies must be developed especially for the "investing for beginners" camp, to take advantage of the new reality. Enter mortgage assignment.( a "investing for beginners" best friend)
"Investing for beginners" asks: What is it?
A mortgage assignment put simply is assigning the title of a home leaving the loan in place from a seller to a buyer. This works because of the new economy where millions of people who need to sell, cannot afford the closing costs and realtor commission traditionally associated with selling a home. At the same time, millions of formerly qualified for loan buyers like business owners, ITIN, and others can't get approved by a bank, but they still want to buy and are looking for creative options.
The mortgage assignment fits the bill as it is very attractive to this type of buyer because they have large down payments, tend to be a bit more sophisticated and demand certain protections like actually having the deed in their name.
Why it's best for new investors
1) Big profit potential.
These new buyers often have large down payments as much as 5% to 20% which goes straight into the "investing for beginners" investor's pocket, minus closing costs.
2) No Cost To The Investor
The way the contract works, it is simply an agreement between buyer and seller. You do not pay anything.
3) No Risk Investing for the "investing for beginners" investor.
Once again, the mortgage assignment is simply an agreement between the seller and buyer. No matter what happens, you are not responsible, even if the buyer at some point defaults.
4) Easy To Find
In this economy, homes with sellers that need to sell but have homes that are at or near being underwater are literally a dime a dozen. The reality is, there are going to be a flood of these for years to come, and there is more than the competition can handle. It's a buffet of deals
5) Easy To Sell
As explained above, the pool of creatively financed buyers has exploded to the point that these types of mortgage assignment homes actually often sell 5 to 10% above the traditional MLS ARV value.
Yes, mortgage assignment is for real and is definitely the new thing that is shaping the nation. If you are in the "investing for beginners" category and you want to get your feet wet making fast cash the risk free way, then the mortgage assignment is the best new strategy for you.