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A Novation agreement allows for buying and flipping properties without upfront cash. The speaker illustrates this by using a Craigslist example, where they negotiate a Toyota Sequoia's price from $9,000 to $8,000, asserting they don’t have the funds but will find someone who does. While Novation agreements are discussed as innovative in real estate, the speaker prefers buying properties "subject to" existing financing. They emphasize that negotiating lower prices, like potentially getting a $9,000 vehicle for $7,500, is often successful. Despite acknowledging the utility of Novation agreements, the speaker expresses a strong inclination towards alternative methods.
