Consider these parameters for a real estate deal:
Property Value: $250,000 Purchase Price: $160,000 Repairs: $2,500
If you analyze numbers, you see that 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 information above is accurate, and 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, answer is: Absolutely YES!
And this is called "Wholesale Real Estate Investing" - process of buying a lot of equity at a very significant discount from another real estate investor who has already done 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 country) who, several times each month, offered you 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 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: