Real Estate Journal - "Be Wary of Signs and Ads Offering To Pay Cash for Your Home" (7-31-06)

"According to one formula in 'Buy It, Fix It, Sell It, Profit' by Kevin C. Myers (Dearborn Trade Publishing, 2003), investors calculate their offer by subtracting costs for purchase, rehab, holding, sales, profit and unexpected contingencies (or the 'Oops Fund,' as the author describes it) from the maximum retail value of the house, as determined by comparable sales. As a rule of thumb, Mr. Myers writes, skilled foreclosure investors buy properties at savings of 20% to 50% off retail value. Some may offer a slightly better deal, but only if the seller finances the cost of needed repairs."