The Assignment Advantage: A Simple Path to Real Estate Profits

“Real estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.” — Robert Kiyosaki

There is a lot of truth in Robert Kiyosaki’s quote. But, at the same time, finding and securing deals in real estate investing can be a challenging process. This is where assignment companies come into play. Their goal is to simplify the acquisition process, eliminate risk, and open doors to new opportunities by connecting property owners with qualified buyers. 

This article examines real estate assignments through the eyes of Nick Najjar, the CEO of ACS Communities and Elephant Capital Partners, who has built a successful assignment company that manages five mobile home parks with over 270 lots across Missouri and Illinois.

The Genesis of an Assignment Company

In many cases, starting an assignment company begins with identifying a market gap. This realization came from Nick’s own experience managing mobile home parks. During his search for deals, he became overwhelmed by the work required to secure properties. 

One deal in particular, a $2 million mobile home park in Indiana, exemplified this challenge. The property had potential, but required an additional $2 million in capital improvements, making it an overwhelming undertaking. As a result, specialized expertise and support were needed in the acquisition process.

His participation in Frank Rolfe’s Mobile Home University furthered this realization. In addition to providing insights into mobile home park investments, this boot camp reinforced the importance of clarity and preparation in deal-making. After recognizing that many property owners, especially those with smaller parks, were underserved, Nick founded his assignment company to help them.

What Is an Assignment?

In real estate, an assignment occurs when an investor secures a property under contract and then transfers the rights to another buyer for a fee. Single-family home wholesalers use this approach, but it also works in other sectors, such as mobile home parks.

For instance, Nick’s company might contract for a mobile home park and then assign it to another company. As part of this arrangement, the buyer assumes all rights and responsibilities of the contract, while Nick’s company earns fees for facilitating the transaction. It is a win-win for all parties involved: sellers get their properties sold, buyers get access to vetted opportunities, and the assignment company earns revenue.

The Benefits of Assignments

As a buyer, assignments offer several advantages:

• Time savings. It can be incredibly time-consuming to identify and vet deals. But, with assignment companies handling this legwork, buyers can focus on other aspects of their investments.
• Reduced risk. Working with an experienced assignment company allows buyers to access opportunities that have been thoroughly researched and vetted. As a result, it minimizes the risk of unforeseen issues.
• Access to underserved markets. It is common for brokers to focus exclusively on larger deals, leaving smaller properties without representation. This gap is filled by assignment companies, which offer buyers opportunities that might otherwise go unnoticed.

It is because of these benefits that Nick often considers assignment fees to be his happiest expenditures. 

Ultimately, though, if you lack the time or desire to find and secure deals yourself, you must hire someone else to do it for you.

Building a Successful Assignment Business

To launch an assignment company, you need knowledge of the market, the ability to build relationships, and operational experience. In Nick’s case, this meant working with Jason Ramshaw, a skilled operator with an eye for details. Together, they have built a thriving business that consistently secures and assigns mobile home parks. In fact, at any given time, their company has 7 to 10 parks under contract, ready for assignment.

Their success is also attributed to their commitment to education and networking. As a member of mastermind groups like the Lifestyle Investor Mastermind, Nick has gained valuable insight into tax strategies, deal structures, and passive income strategies. Being surrounded by like-minded individuals has helped him to sharpen his skills and reinforce the importance of creating a business that reflects his lifestyle.

Overcoming Challenges in a Changing Market

With rising interest rates, the current real estate market presents unique challenges. As Nick points out, sellers’ expectations have widened and buyers’ realities have narrowed. Due to outdated valuations, many sellers are having trouble closing deals. Despite these obstacles, Nick remains optimistic. Keeping a flexible approach and focusing on long-term value has continued to benefit his company.

As part of their strategy, they emphasize the possibility of refinancing in the future. In the short term, interest rates may remain high, but they are expected to stabilize eventually, providing buyers with opportunities to improve their financial situations..

The Power of Community and Collaboration

As another key to Nick’s success, he has been involved in collaborative communities.Through the Lifestyle Investor Mastermind, for example, investors have been able to network, learn, and share expertise. As a result of regular meetups, both in person and virtually, members have fostered camaraderie and cultivated opportunities for growth.

Aside from facilitating meetups and sharing his knowledge within the community, Nick has taken on a leadership role. In his facilitation style, which emphasizes crowdsourcing the collective wisdom of the group, he has been particularly successful. As a result of providing spaces for members to learn from one another, Nick has fostered a culture of cooperation and mutual support.

Looking Ahead

Despite the complexities of the real estate market, Nick and his team are committed to creating value for both buyers and sellers. With their adaptability and commitment to their mission, they can thrive in any market situation.

For buyers, the takeaway is clear: collaborating with an assignment company simplifies the acquisition process, reduces risk, and opens opportunities otherwise unavailable. Nick’s journey offers valuable lessons on perseverance, collaboration, and the power of vision for those considering starting their own assignment business..

With time being one of the most precious resources, assignment companies like Nick’s are helping make life easier for buyers and transforming the real estate industry one deal at a time.

Key Takeaways

• A simplified approach to real estate deals. In addition to handling contracts, assignment companies connect buyers with vetted property listings.
• A buyer’s advantage. The benefits of assignments include saving time, reducing risks, and providing access to untapped markets.
• Building success. Successful assignment businesses are based on market knowledge, strong partnerships, and networking.
• The ability to adapt to market changes. Increasing interest rates and outdated seller valuations can be overcome with flexibility and long-term value strategies.
• Community impact. A networking group fosters collaboration, provides learning opportunities, and enhances business strategies.
• Lessons for aspiring entrepreneurs. Real estate success requires perseverance, strategic thinking, and adaptability. By partnering with an assignment company, you can streamline your investment process and gain access to hidden opportunities.
• Future potential. In the real estate ecosystem, assignment companies provide scalable solutions that ensure value creation for all parties.

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