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A Novation agreement can be a strategy for flipping houses without upfront costs. The example provided involves finding a car on Craigslist—specifically a Toyota Sequoia listed for $67,000. The speaker suggests negotiating the price down to $8,000, despite not having the funds, indicating they would find someone who does. While Novation agreements have their uses in real estate and can be effective, the speaker prefers buying property "subject to" existing financing. They believe that negotiating lower prices on platforms like Craigslist can often yield favorable results, suggesting that sellers may be willing to accept significantly less than the asking price.
