Because they were buying properties that would still produce income even if the market continued to slide down. 

The loan limits for VA loans vary around the country; $417,000 is the lowest amount and is considered the default amount unless you are in an area that has been designated for a higher amount.You can find the current VA loan limits here:  http://benefits.va.gov/HOMELOANS/documents/docs/20...One important note on re-using VA benefits, especially for low down payment loans:  the funding fee is not small, and is higher for lower down payments, and is higher for subsequent uses.  

So now this turns into talking shop, general talk about riding dirt bikes in strip mines, sliding down boney piles on old car hoods, and showing scars.

I was in a 'seminar' when the guy (Mr. guru) put up a slide and taught illegal practices.

I hope to speak with each of them and try to get them on the same page (sometimes I manage to be persuasive).I've done some due diligence work today and discovered that there are no liens, etc. on the home, and that what they may have perceived as potential debt responsibilities is incorrect.If I can get them to "open succession" and subsequently get the house under contract, I think the deal may work out something like this:$165000         ARV (Conservative estimate, waiting on comp info - tomorrow?)

I downloaded the slide decks from last year's and 2014's event though, and will take a look through those.

You could subsequently get $5K in capital gains tax free by the offset. 

I admire the aggressiveness, but temper this with a broader knowledge of subsequent processes.

Then of course you subtract rehab costs and wholesale fee but I really just want to dissect this 70% rule and understand how, why and when it might slide up and down?

Well they usually only get paid off %'s (ie. 3% on first 100K and 1% on subsequent 100K) so a lowball offer won't really take that much out of their pocket and a sale is better than no sale.