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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. 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… 2. Making Time For Your Family and a New Internet Home Business Summary: To this end, a home business also requires a serious commitment and can easily consume a large portion of your time if you don't plan properly.While searching the internet for business opportunities, you've undoubtedly encountered claims of how working only a few hours per week can result in a successful home business. You should try committing even more time if you're not working a day job or have other obligations prohibiting you from … 3. 10 Ways to Make Money with your Digital Camera Summary: Amateur sporting events - elementary, junior high, or high school sporting events offer a great opportunity for taking photographs of peoples kids in action. Digital Image Collections - bundle hundreds of photographs onto a single CD rom and sell as a royalty-free package for web designers and graphic artists that don't want to take time from their areas of interest in order to take photographs. Selling Scrapbooks of Events - if you're a… 4. How To Sell On Ebay: Using Store Policies To Cement Your Credibility Summary:How To Sell On Ebay: Using Store Policies To Cement Your CredibilityIn your quest to build credibility as an Ebay seller, few things are more important than creating and following consistent store policies. In addition to a shipping and return policy, you will want to create a statement of quality assurance.When I used to sell jewelry on Ebay, I promised my customers that the metals were solid, the gems were real, and everything was stamp… |