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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. Selling Your Database Summary:By Ed Pudol When you're in selling database business, you must consider and remember the following points' before selling' or start building your precious database. Here are some of those forum where you can sell your database. forum.digitalpoint.com sitepoint.com/forums namepros.com webmaster-talk.com http://www.buyandselldb.com You sell them for how much? This is one of the most reason why database sellers fails, the price of their … 2. The Silver Lining Summary: Online SalesIf the idea of starting a low cost home business isappealing to you but direct sales is not, you might want totry selling products online. If you explore thisroute, you will probably spend a lot of time learning aboutwebsite promotion and ezine ad placement before you startearning a substantial income from affiliate programs.However, *it can be done* -- in your spare time -- and atvery little cost.The Service OptionYour third… 3. 5 Tips for Journaling Your Home Based Business Plan Summary: If you are using this article on a website or e-book, please make sure that the link in the author bio is live or clickable.Email notice of intent to publish is requested: bcarrphillips@yahoo.comWord Count: 9495 Tips for Journaling Your Home Based Businessby Barbara Carr PhillipsJournaling is an effective way to reach your goal of starting your own home-based business. Whether you want to be a freelance writer, a silk florist, an academi… 4. Top 7 Small Business Sites for 2005 Summary:Top 7 Small Business Sites for 2005Copyright 2005 Jinger JarrettIf you want to start a business in 2005, and start makingmoney almost immediately, the sites listed below are someof the best I have found. You canalso use your web site account to build your primarybusiness and generate another source of income.Coachville.com - http://www.coachville.com - Thinking ofstarting a service business?Even if you aren't interested in starting any ty… |