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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. Factors To Make Or Break Your Home Business (And Home Business Residual Income Streams That Work!) Summary: This article probes into the questions that you have about the benefits of starting a home business, avoiding the scams that seem to attract any prosperous industry and (the bit that you?ll want to gobble up) the drop dead simple ways that you can implement today for instant home wealth. How cool would it be to turn up to your home office, find things smoother than smooth and call Bob up for a round of golf (of course if you don?t know B… 2. FINDING POTENTIAL WHOLESALE ACCOUNTS Summary: Add to that the retail stores you regularly patronize, and you're ready to go.While nearly every retail store is a potential client, those stores will generally fall into three basic categories: Mom and Pop, Small Chain, and Franchise or Major Chain.SELLING TO 'MOM AND POP' STORESThe local stationery shop, liquor store, truck stop, convenience market, gift shop, and all those -her privately owned retail stores that line the streets and s… 3. Six of One, Half a Dozen of the Other Summary:You've read many articles I'm sure about the advantages and disadvantages of working for yourself from your own home. But how many articles have you read that give equal time to the advantages of working for someone else compared to working for yourself?This article seeks to redress the imbalance by comparing and contrasting the respective pros and cons of running your own home-based business and working for someone else.COMMUTINGWhen you… 4. Web Page Statistics Demystified Summary:Do web page statistics have your head spinning? Read on and you will also find outhow to use your web page statistics effectively in your online marketingplan and web page design.A Few Definitions:Hits - This statistic counts each html file on a page. Pages with frames may give distorted statistics as the frame is itsown page, thus increasing the actual number of pages viewed.Although you cannot take what your statistics say as gospel, yo… |