What is Assignment Arbitrage in Real Estate?

What is Assignment Arbitrage in Real Estate?

Assignment arbitrage is a strategy where an investor obtains the right to purchase a property, often a new construction unit before it's completed, and then sells or "assigns" that right to another buyer for a higher price before closing. This method allows the original buyer (the assignor) to profit from the increase in the property's value without actually completing the purchase, while the new buyer (the assignee) acquires the property, typically under market value compared to future potential prices. It's a form of investment that capitalizes on market dynamics and construction timelines, often used in fast-paced real estate markets.

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