Chris PrefontaineSerious about making money in the real estate investment business? Free Webinar - REGISTER BELOW!, Smart Real Estate Coach · Chairman, Founder, 4x Best-Selling Author of "Real Estate On Your Terms," Forbes Business Council Member, 3x Inc 5000 Honoree, Global Rank TOP 0.5% Podcast Host

Pros & Cons of An AO Deal In Real Estate #shorts

24 Apr 2024 · 1 min

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0:47

In this short, the presenter explains how the real‑estate investing community became increasingly aggressive over the past decade in sourcing Assignment of Contracts (AOs). He notes that an AO’s success depends on the seller’s flexibility—if the seller is willing to work with the investor, the deal can be marketed and sold; if not, it stalls. He then highlights common pitfalls: students taking deals without coach review, improper deal structuring, and choosing low‑yield property types such as single‑bedroom condos, which depress returns. Despite these challenges, he asserts that with careful selection, proper structuring, and a selective approach, investors can eventually achieve a high appointment conversion rate, potentially reaching 100% success.

Chapters

We got super aggressive in the last 10 or 12 years, especially at the beginning with what we took. And a lot of them would be AOs at the beginning. When you take an AO, you're taking it to market, as you know, Larry, for what the seller wants and seeing what you can do. And sometimes the seller is flexible and you make it work, and sometimes they just won't and you can't sell it. So that's usually what happens with these. The other mistake I see in the community, frankly, is If a student goes and takes a deal and the coach didn't even see it or I didn't see it yet and they didn't, they didn't structure it exactly the way they should have or the type of property, a condo by itself, one bedroom, you know, so those will knock the numbers down a bit. But by and large, you can get just like the appointments, you can get to 100% eventually. Depends how picky you are.