@Terrance Merck so this raises a couple of issues. Assignments are an area that get drilled into new “investors” and the nuances vary from start to state.
1) Unless it specifics otherwise, all contracts, not just real estate purchase contracts are assignable in NC. However, just to be clear most contracts used by investors include explicit language to allow assignments.
2) Assigning contracts is not wholesaling. It’s semantics but there’s a difference and they are used interchangeably. If you’re a wholesaler your buying property at a low price and selling it st a low price. There’s a margin build in an that’s your profit. But two things happen when you wholesale 1) you put up money for the purchase and 2) you take ownership of the property.
NOTE: I won’t get into whether “dry” closings are legal in NC. I’m not an attorney and I know attorneys who will do it and others who won’t. A dry closing is a double closing where your buyers money is used. You close on the purchase without any of your own money and the immediately close on the sell. Your buyer’s money is placed in a trust account and the attorney pays out everyone including you and your seller. You make money without putting any at risk.
3) In NC, while assignment are allowed, it should not be your primary strategy. If all you do is assign contracts and dry double closing it’s gonna catch up to you and you can get in trouble with the NC RE Commission (yes, even if you’re not a licensed broker). Assignments should be an alternative strategy as a back up to a primary strategy. Say your intention was to flip and then you decided you didn’t want to take on the project - you could assign it to another flipper that did want it.
4) (getting on my soapbox now). Assigning contracts is not investing in real estate. I’d argue too wholesaling and could even go as far a flipping are not investing. The rule the IRS uses for what’s allowed in self-directed accounts is whether or not you put any money at risk. Assignments and wholesaling definitely fall into this category. You have no money at risk. So I say, I’m using real estate to make money. If you had 20 T-shirt’s printed for a price of $7 and then sold then for $20 and made $13 profit a piece does that make you a T-shirt investor? No! You’re selling inventory.
Assignment are good way to earn quick capital but you not risking anything.
Instead I’d look for people you can partner with or private lenders you can build a relationship with and begin buying and holding or buying and offering seller financing.
I know this is a lot and I have some opinion mixed in but that’s my two cents.
