holesale real estate Investor B recognizes that the
investing (i.e. contract that Investor A has
"quick-turn" or established is worth $70,000 in
"flipping" real estate property) equity, and so he strikes a deal
is conceptually very simple. with Investor A to turn the deal
Here's how it works: over to Investor B in exchange
for some amount of cash, called
First, "Investor A" finds a great an "assignment fee" (we'll use
real estate deal with a lot of the value of $12,000 in this
equity. Typically, Investor A example).
will have spent a significant
amount of time, money, and So Investor A is giving up
expertise to find the deal, $70,000 in "potential" profit in
negotiate the terms, and get the exchange for $12,000 in current
property under contract. By profit. And Investor B is paying
putting the property under $12,000 because he believes he
contract, Investor A now has can make more than that on the
control of the property, and the deal, since there's a full
equity in the property. $70,000 of equity built in.
(For this example, imagine that This deal between Investor A and
Investor A has found a property Investor B is called an
worth $200,000 and has set a "Assignment", because Investor A
purchase price of $115,000 and he is assigning the contract to
also knows that there are $15,000 Investor B.
in repairs, which leaves an
equity position of $70,000). Third, Investor B does his "due
diligence" (i.e. inspections,
Second, "Investor A" finds appraisals, etc.) to confirm that
another party, "Investor B". the deal is as good as he/she
thinks it is. "quick-turn", real estate flip
deal works - not so difficult
Finally, at closing, Investor B now, is it?
closes the purchase of the
property, and Investor A receives Now, get out there and hunt them
the assignment fee from Investor deals down!
B.
What? Not sure where or how? I
This is obviously, a can show you 3 quick sources to
simplification of the process. get ya started right away...
But this is essentially how the
About the Author:
Alain Diza makes it easy to understand the mechanics of the real estate wholesale quick-turn flip. Learn this principle and private strategies the 'gurus' are charging thousands for. Get your free e-course at: http://www.tm-RealEstateInvesting.com
Source: www.isnare.com
