Its a new lien, not one that would be paid off at the time of the purchase.In your example you cannot purchase the property with a $120K loan for the simple reason nobody will get you a $120K loan when purchasing a property for $100K.Frankly you are barking up the wrong tree to be trying to buy from a wholesaler with any sort of conventional financing. 

It’s a solid concrete building but windows are busted out and trees are grown up all around it and squatters have been in and out.

Everyone else's recommendations of sloping the earth next to your walls away from the house (can be accomplished with flower beds near the walls - avoid plants w/ long roots like trees), adding/fixing gutters, extending roof overhangs, and subterranean drainage are all steps to take to decrease water infiltration.Nowadays we ideally insulate and waterproof our basements from the outside - but that's more work than it's worth for a flip.

Landscaping completely done, including new trees planted.

Not my cup of tea, but folks do make it work.  

He'll get one from me, when bananas grow on coconut trees.

Not my cup of tea per se. 

A/C  and heating units could be on the last leg, tree roots can cause foundation issues, water drainage issues.You might not want to own this property.    

It is currently on the market for $119,000, though after seeing the property it does  need a substantial about of remodeling not to mention 8 potential tree removal that are hovering over the house and may pose a threat to it in the event of a bad storm.  

Also don’t see how insurance would pay for it (or did a tree fall on that part of the roof?)