How much would an Investor spend?

[Georgio Tate]

Hello Bigger Pockets familia!

Quick Question..

I live in an area where the average home value is pushing $300,000 (City of Elk Grove.. Sacramento County). Which I enjoy to say the least. Investors say pay no more than 65% of the ARV. Makes sense. However what stumps me is the logic. Will investors put in, $195,000 in hopes to profit $105,000? Not that anyone wouldn't desire to make 100,000, but to risk $195k just seems unlikely to me. The majority of people I know spend far less on an investment.