I've given haircuts on deals, not because they are difficult to sell at a higher number, but because these types of investors have saved me time, money, and STRESS from being so easy to work with.

Tax returns and mortgage payments will be used for this math/documentation and, if the property has less than two years on your tax returns, they will use a schedule of qualifying rental income where they hair cut rents by 25%.  

If it's $650, then a $25 haircut for a great tenant that saves you more than $25/month in repair costs and headache is worth it.

I calculated what it was worth based on average price per square foot, than gave it a 10% hair cut because it's the largest house in the neighborhood and the mathematical result would have priced the house out of the neighborhood.

Hello RichardYou are on the right track hanging out here on BPYou will not find a better real estate investment forum then here01- Check out Amazon .com   Books section,,you can buy any real estate book under the sun used ,in print out of print for pennies on the dollar.If you dont have them yet ,get the 3 excellent books by John Schaub.02 When you can afford it get a smart phone,,it doesnt have to be an I Phone,,,,HTC makes a very nice Android style phone for the money.Make friends with a young techie geek and get a handle on the best phone company deal around,,,I word suggest T Moblie first.Gei an internet hook up on your smart then you can listen to the BP Podcasts via You Tube wherever you go ,,,even waiting for a haircut at the barbershop.Lastly find the best REI meeting in your area,,,,hint,,,it wont be the one where some snakeoil guy is selling courses for $1997.00 on a card table at the end of the meeting.Good REI's usually have folks that have a professional capacity in the real estate industry and anj area of expertise they talk about,,,,ie brokers appraisars,,,,,title reps etc.Believe or not I have found theres usually only one or 2 in any major metropolis that are worth while,,,,so it might take you some time to find oneHope this helps DD in L.A.

Banks are choosing to unload many lots,fractured residential and commercial developments because banks don't see a short term recovery there.They are also unloading mom and pop type C class property that is vacant or has huge problems.Usually only cash investors can purchase these because lenders won't touch them with the vacancy levels.Some investors in pre-foreclosure are walking away from properties with recourse or non-recourse loans where the investor doesn't see an equity upside if they hold on for the market to return.In those cases the banks have to sell the note or foreclose or the short sale if the seller agrees.Core A and B assets you have MANY finds desperate to unload their built up cash to acquire assets for their investors.So it's supply and demand for quality assets at a great price.If I was bank and I have a brand new anchored Publix shopping center I funded I would look at it this way.There is one up my road that is 16 months old.Occupancy is at about 40 percent.I know the developer is treading water.The bank would much rather work with the developer on the 20 million dollar loan and put some payments on the bank end or reduce the interest rate while occupancy increases them to foreclose and take a 8 million dollar haircut based on current cash flows.This is what many investors don't understand.Banks aren't stupid and they will dump the junk and extend quality on larger loans they can get performing again and preserve value.

So if they don't treat you right up front, there's your sign.Another thought: remember a few years ago when Sec 8 forced 10% "haircuts" on land lords in some markets due to budget sequestration? 

either you sell them all as a portfolio (one 1031 exchange) but you take a haircut on the price. 

The typical brown bag lunch, cut cable, 1 hair cut a month, I paid $1000 for my car and it works perfectly.

You identify a property that even with a hair cut for your assignment fee works for an investor, you get it under contract and shop it to your buyers list.