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 heres 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!
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, fairly quickly, wouldnt 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 investing 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...
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 Alains private website at: http://www.tm-RealEstateInvesting.com