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A Novation agreement allows you to fix and flip houses without upfront costs. For example, you can find a car on Craigslist, like a Toyota Sequoia listed for $9,000, and negotiate to buy it for $8,000 without having the cash. The agreement lets you connect with someone who can provide the money. While some view Novation agreements as innovative, the speaker prefers purchasing properties "subject to" existing financing. They believe the likelihood of successfully negotiating a lower price, like getting a vehicle worth $9,000 for $7,500, is generally high.
