How to Buy & Sell Real Estate Contracts

Buying and selling real estate contracts is a great investment vehicle for an individual looking to get into the real estate market. This investment tool requires finding home sellers in financial need to sell their home at a reduced rate and then flipping the house immediately for a profit to another buyer. While the process can be time consuming and difficult, the result can net considerable profits.

Visit your county clerk's office either online or in person. Review homes in danger of being foreclosed upon in the next 30 to 60 days by looking up notices of upcoming foreclosures posted by lenders filed at the court house.

Contact the owner's of the home. Explain that you can help them prevent foreclosure and damage to their credit by purchasing their home for them for exactly the amount they owe on it to clear their mortgage. Once you have found a seller willing to cooperate, you can take the next step.

Write an offer to purchase the property for the loan amount and submit it to the lender for approval. Lender approval can take 30 days or longer; however, most lenders will be willing to accept the property to prevent high court fees and costs associated with foreclosing on a property.

Set a closing date on the property for 30 to 60 days after the lender approval of the contract. This will allow you enough time to market the property to viable buyers in the area.

Market the property to buyers. Publish a market price on the property that will help it sell quickly, while still providing you with a profit. Market the property prior to purchasing it and have at least two buyers lined up to purchase it directly from you on closing.

Have the buyer write an offer to purchase the home from you, either on your closing date with the sellers or shortly thereafter. Having a contract in hand can provide for a simultaneous closing on the same day.

Close on the property with the sellers as agreed. Obtain deed and title. Wait until the loan funds to convey the property to you.

Close on the property with the buyers either on the same day or a few days after your closing appointment. You will convey the deed and title to them at that point and obtain the funding approval. Once this is complete, you have successfully bought and sold real estate contracts for a profit.


  • Purchase distressed properties in areas that have high resale value and homes that sell quickly. Have a realtor help you set a fair market price and help you market the property.