Here is your Boca Raton homes write-up. Make usage this excerpt to appreciate real estate more deeply and clearly.
Wholesale real estate investing (i.e. “quick-turn” or
“flipping” real estate property) 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 amount of time, money, and expertise to
find the deal, negotiate the terms, 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 another 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 amount of cash, called
an “assignment fee” (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
B 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 built in.
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This deal between Investor A and Investor B is called
an “Assignment”, because Investor A is assigning the
contract to Investor B.
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Those who were searching for Boca Raton homes felt delighted. To some, it was Greek!
But, why to stop in midway? Traverse till the hindmost word to comment about its worth.
Third, Investor B does his “due diligence” (i.e.
inspections, appraisals, etc.) 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.
But this is essentially how the “quick-turn”, real estate
flip deal works - not so difficult now, is it?
Now, go get the deals! Not sure where or how?
I can show you…
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About the Author:
Though a relative novice in the real estate arena,
Alain Diza catapulted to rapid financial success with
his uniquely simple marriage of Internet Marketing
and Real Estate Investing. To see a sample of his
strategies, and to answer the question in the above
article, visit Alain’s private website at:
http://www.tm-RealEstateInvesting.com
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