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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. How to Start Home Based Travel Businesses Summary: Some things you want to consider before you decide to open your own home based travel business are: Do I need any special training or education?Should I pursue this part-time or full-time?Is my family supportive of my decision?Do I have a room in my home where I can set up an office?Should I get an extra phone line?What sort of office equipment do I need?What will I do about accounting?How do I manage my tax needs?Is this a job I will lo… 2. What Are YOU Doing to Keep Your Customers? Summary: It frees up your time (time that can be better spent elsewhere) and it gives your customer instant service. ' Create or find bonuses that you can give away to your customers. Bundle them with a subscription to your newsletter, a product purchase, or even offer them as a 'surprise gift'. ' Show appreciation. For example, offer repeat customers a 'loyalty discount'. ' Remember that words can easily be misinterpreted in an email. Article:N… 3. Organize your mailbox Summary:Organize your mailbox(c) Copyright 2004 by Anna SporringHow many times have you desperately beensearching through hundreds of emails, looking forone specific piece of information. You get theidea.Now comes the really, really time consuming task.But it's gotta be done, so roll up your sleevesand get busy!You need to read through EVERY email in yourinbox! Imagine all the time you freed up justby organizing your information like this.Go make… 4. Protecting Your Home Based Business Idea Summary: Sometimes it is hard to think that we would need to gain protection over something as abstract as our home based business idea, but depending on the business, it could be vital.Knowing that a home based business idea can sometimes be equated with property is vital to taking the right steps to protect your home based business idea. You never know when someone else will have that same home based business idea later on.Filing your home base… |