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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. Building a Resume Writing Service for Profit Summary:The resume writing service serves an important role in the economy. As an experienced resume writer, you can provide the exposure needed for a job seeker to land an interview.Specializing as an executive resume writing service can bring greater income for both you and your clients. Becoming certified by the Professional Association of Resume Writers (PARW) or the National Resume Writers Association (NRWA) can help establish your credentia… 2. Where to Buy Used Cars at Bargain Prices! Summary: These auctions are usually advertised in newspaper classified sectionOr handled by Probate Estate Auctioneers.Government Auctions are an excellent source for bargin vehicles. They include vehicles from DEA drug raid seizures, FBI, IRS, U.S. Customs Auctions, Department of Defense, General Services Auctions, Resolution Trust Corporation, Department of Housing and Urban Development, and U.S. Postal Services.Rental Car Companies often sell … 3. Time Management Makes a Good Home Based Business Summary: This means you balance work and your life in a schedule so that your time management tool will allow you to play and work on your home based business ' preserving your sanity.Developing your priorities is also a great time management tool for your home based business. It may not seem like time management for your home based business, because you are not actually doing work, but it may allow you to come back re-energized and ready to be e… 4. Getting Your Price On eBay While Keeping Your Fees Down Summary:When you have the right item - something that has wide appeal and is in high demand - you can usually safely save on your eBay listing fees by simply using a low starting bid and letting multiple bidders run the price up. However, your catalog still won't be protected, and there are some items that don't have cross-category appeal.Using a low opening bid with the option of a price revisionThis technique keeps your listing fees low and als… |