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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. First Make a Buck Then Make A Million Summary: Find a good product andmarket it, market it and then market it some more.Be thrilled when you make a buck and then figure out a wayto make one more. Don't be discouraged if you are not an overnight success,instead relish the fact that you are in the game and as longas you stay in the game you will be learning, growing andsoon making that $1000.00 or more, and then much more. Your mind is working, you're learning and doing every day...and… 2. The Perfect Home Business For Moms! Summary: One Work at Home Business that has worked out very well for me is eBay. Because a Work at Home Business using eBay is so easy to operate and maintain.Since technology has become much simpler over recent years, learning curves have become less severe than they once were This has made operating a computer easier than ever. The great thing about Dropshipping, as outlined in my book 'eBay Marketing Wholesale SourcePak', is that it will allow… 3. Gainfully Unemployed... Making the decision to strike out on your own! Summary: If you are willing to make those sacrifices,then let's move on to some of the advantages and disadvantages of owningyour own business.* Pros:- Make more money than you can when working for someone else.- Be the boss and make the business decisions.- Job security.- Put your ideas into practice.- Learn about and participate in every aspect of a business.- Gain experience in a variety of disciplines.- Work directly with customers.- Benefit … 4. "Who wants to Be a Millionaire?" Summary: You will learn several 'Tomahawk-like' tactics and discover the *actual* pathway to personal success.'If you really want to 'make that chance', if you're highly-motivated to succeed you will - I truly believe you can do it, just because I reckon the game, but it doesn't have to be that harsh for 'ordinary' people.If you're wondering why I am so obliging and compassionate with you fellow promising millionaire, is simply because I want to … |