Why are Cash flow investors buying so low?

[Curtis Daniels]

Every time I listen to or screen a cash flow niche investor I meet from a REIA, they generally speak of buying properties at tremendously cheap prices like 11,000, or 17,000 where the counties are closer to the downtown areas (typically the projects). To me, a higher quality tenant is going to benefit you more living in a neighborhood where the property values are higher. Is this because these are the only properties that these cash buyers can afford? Do people who wholesale to these cheap buyers make much of a profit for themselves?

[Sean Kremer]

Originally posted by Curtis Daniels:

I dig your grind Patrick. I'm really trying to understand the psychology of investors. My main focus is to find the big dawg cash buyers primarily.

Its been my experience that if you do get into negotiations with a "big dawg cash buyer," is that they don't expect to pay much more than 50 to 70 cents on the dollar. I believe the reason for this is because cash is king and they are capable of making your house disappear quickly and easily for you....for a reduction in price that is. In my experience, they don't buy "real estate," they buy "situations."

Sean