|
Equity Discount Real Estate Investing
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 available in this deal is $87,500 (Property Value minus Purchase Price minus Repairs).
So here's a hypothetical question for you: Assuming that the information above is accurate, and the property is located in an area that you view as acceptable 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 savvy investors, the answer is: Absolutely YES!
This is called "Wholesale Real Estate Investing" - the process of buying a lot of equity at a very significant discount from another real estate investor who has already done the hard work of finding a deal and getting it under contract.
Just think about 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 even 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 become wealthy, fairly quickly, wouldn't it?
The answer again, is: Absolutely Yes, it will.
It is through smart "wholesale real estate investing" that you can increase your net worth by $20,000 to $100,000 on every real estate deal that you do.
...Now the burning question becomes, "Where exactly do I find these wholesale real estate investing deals?"
I know of at least 3 solid sources...
You've got to admit - it will be a pretty wonderful thing when you know how to find great real estates deals in which you can trade a small amount of cash for a large amount of equity without even having to find the deals yourself...
...And that's exactly what "wholesale real estate investing" is all about.
So let's get right to it. Here are 3 places to find wholesale real estate deals:
1.) Visit the local real estate investing club in your area. Almost all of these clubs have networking opportunities to work with other investors who wholesale deals regularly, and this is an easy way to find great opportunities.
2.) Watch for ads in the newspaper, television, and in other media that advertise slogans like, "We Buy Houses", or "Sell Your House in 9 Days" or anything similar to that. Most of the time, these people are real estate investors, and they are happy to wholesale deals to people like you.
3.) Watch your email-box. Why? Because if and when you choose enrollment in various free e-courses online, such as that via tm-RealEstateInvesting.com, you'll be provided with automatic notification about great local and national deals as they become available. But be forewarned - you've got to act quickly whenever these deals are announced, because obviously the response is always significant.
Happy Hunting!
About the Author
James Louis writes about things that impact our society. A long time real estate investor, he likes to share his knowledge, insights and tools. One of his favorite tools is the 1031 exchange. For more information visit: http://www.the-1031-exchange-site.com
James Louis
More Articles
Resources for Online Real Estate Courses - Jeff Lakie You've made the decision to move ahead in the real estate world and get your real estate license through an online course. Navigating the waters of online real estate courses can be tricky, as there are so many institutes, colleges and universities...
Florida Real Estate Exploding For 15+ More Years? - Chris Anderson PhD YEEHAW!!!!!! The south will rise again!! Can't you just imagine the Dukes of Hazard boys sitting on the hood of their car (the General Lee) grinning in front of a For Sale sign in their yard? Well, they should be smiling with the prices in the...
Real Estate Valuation - Steve Gillman Real estate valuation for single family homes is typically done
by using comparable sales. With income properties this just
doesn't work well. Imagine if you are looking at a 24-unit
building. It would be difficult to find similar ones nearby...
How To Make Money In Real Estate Without Buying Any Property: Become A Mortgage Broker - Ameen Kamadia How To Make Money In Real Estate Without Buying Any Property:
Become A Mortgage Broker.
Will Real Estate prices keep going up or will the bubble burst?
Who knows? Either way, real estate is a risky business. Tying up
all that money and...
Real Estate Investing - Buying Pre-Foreclosures? - Lou Castillo So you wanna buy pre-foreclosures? or at the courthouse steps? So many people ask us about this. Here's our '30 second seminar' on it. If you're going to buy PRE-foreclosures--after the seller is behind on her payments, but before the lender's...
Real Estate Investment - A Simple Formula - Steve Gillman I saw the ads in our small-town newspaper for years before I realized exactly what was going on. They were always the same: A house for sale with 5% down and payments of 1% of the purchase price. It might be a three bedroom home for $90,000, for...
How to Work With More Than One Real Estate Agent When Buying a Home - Andrew L Many potential home buyers do not realize it, but it is
perfectly legal and perfectly acceptable to work with more than
just one real estate agent when shopping for a home. Working
with more than one agent can have significant advantages,...
The Rise of Real Estate Infomercials - Richard Romando From the very beginning of the industry, real estate
infomercials have been very successful. There's something about
the idea of making money in real estate that appeals to a lot of
people.
In fact, most of the real estate infomercials that...
How To BE A Successful Real Estate Investor - Lou Vukas What do we really want? To be successful, we need to know what we really want. This involves a vision of our life as we desire it to be. To cite the success coach, Tommy Newberry, “The most successful people in the world are those who have taken...
Negotiating the Real Estate Contract - Roselind Hejl
Negotiation is the process of communication back and forth in order to reach a joint agreement. There is no "one size fits all" strategy of negotiating a real estate contract. Many of our clients have been very experienced negotiators, and we...
Real Estate Foreclosure and Your Mortgage Financing Options - David Arnold Livingston Foreclosure is one of the risks involved in engaging in business or owning a property if financing comes from a lender which can be a bank, an institution, family and friends and any agencies that can provide the needed amount. Owning a home is...
How you can use Rehab, Refinance and Cash Out as a long term wealth building Real Estate Investing strategy. - David Neese Today we are discussing a somewhat advanced strategy for you to
use after you have been in the creative real estate investing
business for a while. I call this "Rehab, Refinance, and Cash
Out". This strategy can lead to true long term wealth...
|