Posted by Mike Daly on March 10, 2002 at 05:40:15:
The 65% rule you’re referring to only applies if you’re purchasing a property for all cash. If you can get terms, such as owner financing, subject to or lease option, you can afford to pay much higher, sometimes close to full market value. In these cases, the key is getting in with giving the seller no to a very small deposit, and having good monthly cash flow.
Mike
NEWBIE LOOKING FOR ADVICE - Posted by Victor
Posted by Victor on March 10, 2002 at 01:32:51:
Hi,
Im just starting out and i was looking in the archives about attracting more motivated sellers and i saw that alot of invest run ads in the paper saying “WE BUY HOUSES ANY CONDITION ANY AREA ANY PRICE CALL XXX”. Im wondering how is it that they can do any deal what about if a person is going in forclosure and has no equity in the property because they owe the bank to much how could the investor running the ad make that deal work? I was taught that you never pay more then 65% of a propertys market value. Now if i ran an ad like this and some one that was going into forclosure soon called me and said the owe 93,400 and i find that the house is worth 125,000 i could not do anything with this property cause that is over the 65% mark so would’nt that be false advertising?
Thanks,
Victor