"How To Increase Your Net Worth By $20,000 to $100,000 On Every Real Estate Investing Deal You Do"

 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 smart investors, the answer is: Absolutely YES!

And 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 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, wouldn't it?

The answer is: Yes, it will.

You've got to admit - it will be a pretty wonderful thing when you know how to find great real estate deals in which you can trade a small amount of cash for a large amount 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 amount 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 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 (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 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. But this is essentially how it works - not so difficult, is it?

About the Author

Free periodic notification of excellent "wholesale" real estate investing opportunities plus free online training that reveals how wholesale investing works and how you will make money from it including deal-finding strategies and creative investing tips.
http://www.RealEstateInvestorsTraining.com
robertlear@realestateinvestorstraining.com

 Robert K. Lear

More Articles 

Reinventing Real Estate - Charles Warnock
Reinventing real estate, Part 1: How online and empowered consumers are taking charge and paying less. For decades, the real estate world turned in a predictable manner. The roles of buyers, sellers and real estate professionals were fairly well...

Real Estate Agent/Brokers Profit with Broker Price Opinions - Kim Polinsky
There are many reasons that a career in BPO's can be a profitable path. Agents/Brokers are well aware that many deals fall apart every day. There are no guarantees that the deals worked so hard on, will generate any real income. There...

Pros and Cons of the Bulgarian Real Estate Market - Theodora Borissova
Real estate market in Bulgaria for the last 15 years has improved consistently, but still could be defined as developing . Since the introduction of the currency board in 1997 Bulgaria has been politically stable country with a developing economy...

Learning About Real Estate Website Development - Danny Selka
Learning About Real Estate Website Development Thousands of individuals in United States are real estate agents. Many real estate agents work for an existing real estate agency or they their develop their own. In many states a...

Is the Real Estate Bubble About to Burst? - Andrew Lo
How long can prices rise before no one can afford to buy? In a nutshell, that is the basic question that is niggling at the back of our collective subconscious when we talk about the real estate bubble. Real estate is appreciating at staggering...

Welcome to Pro Real Estate Software! - Oliver Webber
Pro-Real-Estate-Software.com is aimed at providing information on real estate software programs for real estate agents, brokers, appraisers, property managers and other professionals, as well as people who are not directly involved in real estate...

Montecito Real Estate from 2000 to 2005 for the first 10 months of each year - Gary Woods
Montecito Real Estate from 2000 to 2005 for the first 10 months of each year There's been a lot written and said about how the numbers of Montecito Real Estate sales are off when you compare them to 2004. Since it's always a good idea to...

Real Estate Investment Isn't So Great right now - Mortgagedown com
In a recent article, W Ford asked 'If real estate investing is so great, why isn't everyone doing it'? Ford says:- Oh, that's an easy one. I can answer that in one word. FEAR. Mortgage down say - over the long term, the stock market has massively...

Real Estate Marketing, Do You Use Direct Mail? - Barrett Niehus
Prospecting for leads is by far the most difficult part of being a Realtor or small business professional. In fact, lead development is by far the most expensive and time consuming aspect of your job. However, you level of success in lead...

Carpinteria Real Estate in 2005, What the Heck Happened????? - Gary Woods
Looking at Homes and Estates and Planned Unit Developments for 2005 in Carpinteria versus 2004 it was a combination of the best of times and the not so good times. The real questions are, was 2004 a particularly good year and 2005 a not so great...

Investing In Real Estate, How Do I Get Rich? - Barrett Niehus
Title: Investing In Real Estate, How Do I Get Rich? Author: Barrett Niehus License: Publish freely both online and offline. Please Include resource box in publication. Word Count: 572 ++++++++++++++++++++ Investing In Real Estate, How Do I Get...

Pointers in Hiring a Real Estate Agent - Nicky Pilkington
Quick Tips in Hiring an Effective Real Estate Agent Buying or selling a house is a thrilling experience. But connected to this is a stressing and overwhelming job. This calls for a good real estate agent. But what do we need to know about...