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And Investor A is paying $12,000 because he believes he can make more than that on the deal, since there's a full $70,000 of equity. This deal between Investor A and Investor B is called an 'Assignment', because Investor A is assigning the contract to Investor B. Third, Investor B does his 'due diligence' to confirm that the deal is as good as he thinks it is. Finally, Investor B closes the purchase of the property, and Investor 'A' receives the assignment fee from Investor B. This is, obviously, a simplification of the process. Article: Consider these parameters for a real estate deal: Property Value: $250,000 Purchase Price: $160,000 Repairs: $2,500 If you analyze the numbers, you see that the equity forsaken in this deal is $87,500 (Property Value minus Purchase Price minus Repairs). So here's a hypothetical question for you: overweening that the information on tiptoe is accurate, and the property is located in an area that you view as OK and/or favorable, then: If I offered to give you this deal in exchange for $10,000 in cash, would you do it? Remember - this is hypothetical. The real question here is this: Would you exchange $10,000 in cash for $87,500 in equity? For most smart investors, the acknowledgement is: rigidly YES! And this is titled 'Wholesale Real Estate Investing' - the process of shopping a lot of equity at a very significant discount from contributory real estate investor who has before done the hard work of finding a deal and getting it under contract. Just think hereabout that - consider how easy real estate investing would be for you if you had a network of real estate investors in your area (and maybe all over the country) who, several times each month, offered you the opportunity to purchase significant amounts of equity for a severe discount... ...It would be quite easy to come wealthy, wouldn't it? The solving is: Yes, it will. You've got to lift temporarily - it will be a pretty wonderful thing when you know how to find great real estate deals in which you can trade a small strength of cash for a large shadow of equity without even having to find the deal yourself... ...and that's exactly what wholesale real estate investing is all about. Wholesale real estate investing is conceptually very simple. Here's how it works: First, 'Investor A' finds a great real estate deal with a lot of equity. Typically, Investor A will have spent a significant expanse of time, money and expertise to find the deal, negotiate the term and get the property under contract. By putting the property under contract, Investor A now has control of the property, and the equity in the property. (For this example, imagine that Investor A has found a property worth $200,000 and has set a purchase price of $115,000 and he also knows that there are $15,000 in repairs, which leaves an equity position of $70,000). Second, 'Investor A' finds further party, 'Investor B'. Investor B recognizes that the contract that Investor A has established is worth $70,000 in equity, and so he strikes a deal with Investor A to turn the deal over to Investor B in exchange for some run into of cash (we'll use the value of $12,000 in this example). So Investor A is giving up $70,000 in 'potential' profit in exchange for $12,000 in current profit. And Investor A is paying $12,000 now he believes he can make more than that on the deal, since there's a full $70,000 of equity. This deal Investor A and Investor B is titled an 'Assignment', insomuch as Investor A is assigning the contract to Investor B. Third, Investor B does his 'due diligence' to confirm that the deal is as good as he thinks it is. Finally, Investor B closes the purchase of the property, and Investor 'A' receives the trust fee from Investor B. This is, obviously, a simplification of the process. But this is essentially how it works - not so difficult, is it?
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Advice Home Business Technology Online Advertising Motivational Internet Marketing SEO Help Online Games Science Articles Happiness More Articles:1. 13 Free or Cheap Effective Advertising Methods Summary:Advertising is the life blood of any business, no matter how big or how small. Advertising coop- Many businesses, especially work at home businesses, offer advertising coops. A search using 'free classifieds' will give you an almost limitless number of places to submit your website and ad.10.Ezines or electronic magazines are also a good place to advertise your business. Again a web search will allow you find numerous ezines to place you … 2. The Wholesale Misconception Summary:'The Wholesale Misconception'One thing that's constantly misunderstood by people trying to run a home business on the Internet is the word 'Wholesale'.Some people think that working with a real wholesale supplier means that they will magically be able to sell products for less than anybody else on the planet, for ever and ever. The sky is falling, and it's time to get Duke to the storm cellar because all their dreams are being blown away … 3. I Have Lots of Ideas, But No Idea! Summary: I try to help people with this task by letting them know what steps to take to turn their interests intoan online business.One of the first things you should do is write down allof the things you are interested in: flea marketingwritingmoviespeopleantiquesThe next thing you could do is write down exactly whatyou want to accomplish with your business:earn a good livingpublish an ezinehelp peoplebuild a websiteNow you want to kind of put t… 4. The Top 10 Time Wasting Pursuits of Internet Marketers and How To Avoid Them Summary: Feel free to spam proof it****Start of Article Part1**The Top 10 Time Wasting Pursuits of Internet Marketers and How To Avoid ThemAll of us get sucked into at least one useless marketing strategy or time wasting activity during our career. I have compiled a list of the top 10 time wasting strategies and activities Internet marketers are guilty of and a tip on how to avoid each of them.PART 1 Time Wasting Marketing StrategiesIn today's ar… |