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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. The 5 Promises that will help you succeed in your Home Business Summary:The 5 Promises that Will Help You Succeed in your HomeBusiness!Conray J Knox(c) Copyright 2003 by Conray J KnoxThis may come as a surprise... So I figured if Icould come up with someway to promise myself I would remainfocused I could succeed.So I came up with 5 promises. These promises have workedfor me and I am sure they will work for you to.Promise #1 -- You will maintain balance your life!If your life is not balanced or stable, then be… 2. Is it a Real Business or a Hobby? Summary: 5 ways to build your business:1.Write informative newsletters with Tips and Ideas and most important, describe your business to get your subscribers to click through and visit your website every time they read your newsletter. Use an autoresponder for this and then have your newsletter delivered on weekly intervals to your subscribers.3.Be on the look out for new and informative ideas and add that content to your website, so your subscri… 3. Work It Summary: However, if a person is truly dedicated and willing to work hard, it is very possible to create a successful home business.Another aspect of the home based business opportunity that is often forgotten is that with nearly all opportunities, you can not work solely from home. Article:Many people would love to be able to crescendo their own home business. The risky to be your own boss, set your own working hours, and be able to work in your… 4. eBay And Dropshipping - A Perfect Fit! Summary: But don't be discouraged, the ease of using Dropshippers will allow you more time to concentrate on improving your sales skills and learning how to bring more customers to your eBay auctions.The great thing about Dropshipping as outlined in my book 'eBay Marketing Wholesale SourcePak' is that it will allow you to operate a work-at-home business as an Internet Marketer with out ever worrying about storage of inventory, packaging of invent… |