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(light music) - [Narrator] When it comes to assigning contracts in real estate, the concept can be a little tricky to grasp at first. So Im gonna start by explaining how assignments were meant to be used, and then Im gonna give an example of how they can be used with an interesting loophole. Lets say youre a real estate investor who doesnt like to buy properties with basements. One day, you get a lead on an investment property from a seller who says the property was built on a slab foundation. You both agree on doing a deal and enter into a purchase agreement but, lo and behold, during your due diligence you find out that the seller wasnt entirely honest with you, and the property does indeed have a basement. (screams) At this point, you have two options: You can back out of the deal and walk away, or if you happen to know another investor who doesnt mind properties with basements and they like the deal, you can assign your rights in the purchase agreement to this other investo
