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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. Increase Sales in Your Home Business With These 10 Simple Ideas Summary: An attractive invoice gives two huge benefits:- your customers are more likely to remember you next time they require that product/service and they will pay the invoice more quickly.2) Have a business card.Many small business owners think that they don't need a business card because that is something for the 'big boys'. They are cheap to buy and can include the persons name, their position in the business and, of course, the business nam… 2. The 10 Commandments of Survival for the Entrepreneur Summary:It seems as if everyone wants to have their own business these days. Network marketing is offering tremendous opportunities for many people who would otherwise waste time looking for a business or be stuck in traditional jobs with all the limitations thereto. For those of you who are thinking of stating your own business or already have, I offer the following thoughts for your consideration. 1. When people start their own business they so… 3. Advertising Your Home Business on a Budget Summary:When you are starting out in a new home business and no one knows who you are, one of the greatest challenges you will face is how to drum up new business.If there were not people in your community or marketplace that you knew who needed your products or services, you probably would not have started your business to begin with. But for the rest of us in the real world, we must come up with creative solutions for meeting our home business … 4. How To Sell Your Home Instantly and For Full Value Summary: Easy Mortgage lawn signs tell Buyers that your home is special-they can buy it even though they cannot buy other similar homes. Indeed, Buyers can often buy substantially buy more expensive homes with EMM- another reason Buyers can buy your home, but not the ones that compete it.Complete Your Sale FAST: Conventional lenders typically insist that you 'accept' an offer before they will process a loan application. It provides step-by-step i… |