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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. A Typical Frustration In A Home-Based Business Summary: Individual styles will vary, but the following four points should be kept in mind:*you need to build trust & credibility with thorough knowledge of your business and with straight forward talk about realistic expectations*don't over-sell or indulge in hype as many people are expecting this and it can be an immediate turn-off *send messages with at least one open-ended question that requires a response*keep the messages fairly brief, lon… 2. A Window Washing Business Can Be a Huge Success If You Use Repetition When Marketing Your Business! Summary: That's just a fact.The advertising 'gurus' state that someone has to see your message at least 7 times before they feel comfortable with you, your service, or your company.Now I'm not saying that you have to mail out 7 postcards or distribute flyers 7 times to the same neighborhood of window cleaning prospects before someone calls you. No.But every time you do advertise multiple times, or get the message out repeatedly to a prospect, you… 3. Stop TRYING to SELL and Start TRYING to HELP! Part II Summary: 'Oh Sue, I just started a new business, It's great, all you have to do is qualify 2 legs to build your downline, PV is 100, you can make $5,000 per month, the products are great!'Blah, blah, blah''Most people are not knowledgeable enough, at least not right away, to explain their company in an efficient manner, SO LET YOUR TOOLS DO THE WORK FOR YOU!Hey Sue, I started working with an Internet based company a few hours a week, it's really … 4. Achieving financial freedom with Network Marketing on The Internet - Part 4 Summary:Achieving financial freedom with Network Marketing on The InternetBy Tasos VasilopoulosPart 4 - Pagerank ' What is it ' How can affect the success of your businessIntroductionThis article makes part of a series of 20 articles.The subject of this series is the creation and promotion of a website as a cost-effective method to establish a profitable home based business on the Internet.In my previous article, 'Achieving financial freedom with… |