The assignment is by far the easiest of the Lease Purchase strategies and requires the least amount of investment and risk in order to do the deal and profit upfront. Instead of taking the property and subletting with an option or sandwich leasing you can actually sell the contract to another. You have created a valuable marketable commodity! You can sell and even create a note by financing the sale of the lease purchase agreement, too.
An assignment is when we negotiate the deal with the owner of a property and it contains all the terms of the transaction within the specialized written contract. We can then assign (which means to sell) the contract to a third party. This can be either the Tenant/Buyer or another investor. This is normally a lease purchase agreement which contains a specific assignment clause with the right to sublet, transfer or convey any rights within the original contract with the owner to another principal party.
Example: I found a property in a good neighborhood/school district. The owner had tried to sell it, had put up a for rent sign since he’d be moving to a new state and didn’t want to get stuck with two mortgage payments....
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