Good afternoon everyone,
If someone has a moment I would love to get some more information about assigning properties. This is my situation: I am looking to get into investing for passive income but do not have a lot of cash on hand at the moment. If I could get involved in assigning properties to rehabbers or other investors for fees than I could slowly develop some capital. The Massachusetts housing market is so inflated that rents could never cover a mortgage payment with 0% down and I would have to put a lot more down for positive cashflow (at least I haven’t found a way yet!)
Has anyone had any experience in assigning? Is it practical to think that I can assign to another investor when he/she is looking for the same deals and could find them as well without having to pay a fee?
Does this sound like a smart way to get started investing?
My first advice would be to goto your local REIA and meet other investors in your area, talk to them and see if any would be interested.
Assignments may be the easiest and quickest way to get a check in real estate. If you find a TRUE DEAL, most investors will take it off your hands.
Yeah, you have to make the deal that you set up sound appealing to another investor.
great thanks for the advice.
Is the money made in an assignment taxable or is there a way one can avoid or postpone (something similar to a 1031 exchange)?
Income is income…and taxable. I know there are some other investors in here that use their IRAs to help shelter some ot the income…I think Bud Branstetter is up on this (I think that I have seen his posts on this topic)…you can usually find him in the “Rehabbing, Contractors, Landlording, Section 8, Tenants, etc.” area…he is very approachable and always gives good, knowledgeable answers.
Hope this helps…