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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. Simple Steps to Project a Professional Home-Business Image Summary:One of the more difficult tasks to deal with when starting a home-based business is to decide how to establish your pathways of communication in such a way that you appear organized and professional, yet don't have to break the bank to get started.I have found three methods of communication that I use on a regular basis: e-mail, telephone, and fax. Also, try to keep the phone in a quiet room or where you can shut the door if necessary.One… 2. Does Your Spouse Know What You Are Doing? Summary: It is fairly common in small to medium sized businesses where the founder knows more about the company then anyone else, and much of the knowledge is in his head.I've never heard of 'key man insurance' for a home-based Internet business. In time you should have a fairly complete record of you Internet empire and daily tasks.Now that it is all recorded somewhere, show it to your spouse (or your children, parents, or who ever needs to know… 3. Google Adwords – Online riches without owning a website or product! Summary:Did you know that you can make money from Google Adwords without having a product to sell, or even a website?It's true and there are many people all around the world quietly making lots of money doing it.So how do you do it?Quite simple really, you become an affiliate.An affiliate is somebody who sells other people's products for a share of the profits. Google Adwords!If you've been living on Mars for the last couple of years, Adwords are… 4. Best Work At Home Business Option, Network Marketing or Affiliate Programs? Summary: Although there are many ways to make money on the Internet, and in a home business, everything from producing your own goods and services to running an online wholesale storefront, a good choice for many 'beginners' is either an Affiliate Program or Network Marketing Program (previously called MLM, or Multi-Level Marketing). Affiliate Programs and Network Marketing Programs are essentially, 'turn-key businesses', in that individuals join… |