There are inherent risks in this option. For example, you can’t find someone who will pay to take your position and pay you extra for it, because of lack of interest, or they feel uncomfortable with an unorthodox way of buying real estate; the real estate market slows down and the value in the property is not there for anyone to pay an attractive “bump” assignment price to you; the vendor will not agree to the assignment, or will not let you off the hook; interest rates start to increase and the person buying it from you considers the deal unattractive for affordability reasons if an end-user, or for concerns about carrying costs exceeding rental revenue if a real estate investor; or the person wanting to buy your assignment gets cold feet at the last minute, or can’t arrange adequate mortgage financing.
If you can’t find someone to take over your position, you could be forced to close the deal, or risk losing your down payment deposit, and possibly be sued for breach of contract for the financial damages the vendor claims they have suffered, or be sued for specific performance, eg you would be forced to complete the purchase, rather than just walking away and losing your deposit. Being sued normally does not take place in an increasing market, as the vendor generally can keep your deposit, as “liquidated damages”, and then re-sell the property. As you can see, there are lots of risk variables. Flipping is not for the feint of heart.
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