Question Regard equity on a home.

General Real Estate Investing
1

If I purchase a home for $200,000 and it has an equity of $50,000 who keeps that money? The owner or myself?

Thanks in advance,

2

If you purchase a home for $200,000 and the owner owes $150,000, then that difference is considered “equity”, and the owner would keep it. If you buy it for $200,000 and it is worth $250,000 and you sell it for $250,000, then that “equity” is yours and CONGRATULATIONS!! :beer

3

Thanks for your help.

4

So the owner will be getting the 50,000 in equity and the apreciation value all in cash right?

5

yes 50K cash minus closing costs assuming it sells at the asking price.