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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. HOW TO START AN ONLINE BUSINESS WITH A $0 BUDGET Summary:Can you start an online business with a $0 budget? What I'd like to share with you is my experience so you won't have to struggle like I did trying to start your own online business and wonder why it's not making you the amount of money you need to make a living from it. YOU NEED A WEBSITE While it's true that you will need some experience to make one, there are lots of free services still out there that can enable you to create a website… 2. Free Tools For Home Business Entrepreneurs Summary: Web Site Design - page layout (http://www.steves-templates.com)Steve provides free web page templates which are nice looking, professional and can be used free for personal and business websites. There are also designs you can buy for under $100 and you gain access to a number of images, clipart, sounds, fonts etc.Web Site Design - graphics (http://www.cooltext.com)Cool Text is a wonderful tool for creating great looking buttons and logo… 3. Making Money with Popular Search Engines Summary:With so many internet and home business opportunities on the world wide web nowadays it is very confusing as to know which ones are scams and which are not.However, even though I am sure that most of the money making schemes advertised have their merits, it would give the entrepreneur great peace of mind to know that he was building an internet business in conjunction with a credible and high profile corporate.Credibility is a vital compo… 4. :: Tips To Start Your own Profitable Internet Business :: Summary::: Tips To Start Your own Profitable Internet Business By: Michel Richer You might think that it is hard to start an internet home business. Web Site == Having A good business website is essential to succeed with an internet business. Here is the thing you have to plan to build your website A) Decide on the website design (colour schemes, buttons, special effects etc). Indeed, at one time, one of my other web sites, thefreecountry.com, u… |