A student at Lance Edwards’ Live Event has an Aha Moment regarding extra equity built into the deal:
“When you showed that how that equity is built into someone that is coming in as an investor because I’m thinking “Okay, they’re giving me 20%” so they’re looking at me like “Wow, man, I’m giving you, I’m leveraging the hell out of this property for you.” And I’m sitting here and if I take it back, I’m 100% leveraged but they’re not. Man, how did you do that…extra equity built into the deal…yea, that was just wild.”
I don’t quite get it. Is he offering the seller 20% less for the property and thats where the 20% gain in equity comes from, please enlighten me.
thanks
Scotty M.