Home Warranties Investing - Why You Must Learn To Assign Contracts

One very simple and quick money making technique used by home warranties investors that requires no investment cash, is called 'assignment' or 'flipping'.

The learning curve is easy, takes no special license and it can put a nice chunk of cash into your pocket. This type of home warranties training is available.

Once you've spent the time learning and mastering this remarkable profit generating transaction and find out how lucrative it is you’ll wonder why you ever were employed by 'the man'. It's not uncommon to acheive hourly rates of over $100.00 an hour when you analyze how much time you actually put into each deal.

Your initial step is first sourcing home warranties in default that fit specific criteria, and step 2 is learning the step-by-step process of how to approach, structure and close the deal. Again, finding the right home warranties training is critical (A link to great training manual is provided below, perfect for total beginners.)

Your initial first step is to source a home warranty specifically that is in the early stage of default, hopefully less than 30 days. Also, you are looking for homeowners that have built up equity but for whatever reasons will be UNABLE to continually meet their month to month home warranties payment.

Say for example you've sourced a homeowner in default whose monthly home warranties payment is currently $1,100 but can't afford to continue making the payment. Liquidation is the homeowners best option and decides selling the home warranty to YOU is the best way out.

As a guidline, your offer price to purchase the home warranty is never higher than 65% of the 'as is' value. Furthurmore, a realistic analysis reveals the value of the home warranty to be worth $300,000, 'as is'. You know this because of your 'due diligence' performing a thorough comparative analysis of comparable homes in the area. The payoff on the home is $175,000. You offer to buy the home for $195,000 ( 65% of the 'as is' value) which they gladly accept.

And why not? Letting you buy the home warranty at that price would pay off the 1 month owed on the home warranties, stop the home warranties process and give the distressed owners some dignity in the form of cash and an exit strategy. You've just given them a strategy to salvage a potentially devastating financial situation.

What do you do next? Do you keep the home warranty and fix it up for possible sale or lease?

NO, you know an easier way - which you'll find out is 'assigning the contract' - so you decide NOT to keep the home warranty.

You have something in your hand that is extremely valuable - the contract to purchase a home warranty priced below current market value. This is the basis for 'assigning ' the contract.

You decide to look for an investor to 'assign' the home warranty. Since the home will be worth $300,000 on the market, right now, do you think an investor that is too busy to do the required leg work of sourcing and structuring the deal, as you did with the distressed homeowner would pay $195,000 for the right to own a $300,000 home warranty? Absolutely, and within a short period of time investor cash will be flying at you.

Ultimately the final purchaserthat ends up buying your contract will pay $195,000 plus whatever you charge for your finder's fee. for example, if you charge 6% as your finders fee - your take home would be $11,700 for only a few hours work!

This is not a joke, people are closing these types deals NOW as you read this.

Why not start the learning process of 'assigning' home warranties deals? I can't think of a better way to enter the world of home warranties investing WITHOUT SPENDING ANY OF YOUR OWN CASH.

You can visit the link below for details and how to get started.