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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. Beneath the Surface of Internet Marketing Summary:To most people Internet Marketing looks like a good way to make money from home, which is possibly the main reason while people start. However, in today's online business even merchant accounts are not vital, there are several good facilitators providing the same service at a lower cost.As your costs are low, each sale means more of the money is yours! Even if you took five years to take your business from part to full time, you would be … 2. Make Time For Family Summary: Set aside some time every day for family. Havinga little time with your family is very relaxing,invigorating and refreshing. Have a family movie,play board games, take a family walk or bike ride,or have a picnic. Taking a little solo timewill make family and work time much more enjoyable.3. After such a day,you will be refreshed and ready to get back to work.You can find more info and ideas here:http://www.family.org/http://www.familypla… 3. Work at Home--Ideas for Success Summary:Searching for success in your online home business? This short article offers summaries of some of the work at home opportunities on the Internet today, the common and the not-so-common methods people just like you have found success online. Take surveys online. Here's a hint from the big guys, the ones that consistently make tons of money online: Take your time in the research stage, and make your decisions from the head, not the heart o… 4. Save Money By Cutting Recurring Expenses Summary: There are a wide variety of services available for handling these facets of our businesses for us. However, these simple services can add up to hundreds of dollars of unnecessary recurring monthly expenses if we allow them to do so. Auto responder services run anywhere from $15-$30 a month. Same with my ad tracking. All my links reflect my site, not someone else's. The price required to purchase CGI scripts for auto responders or ad tra… |