I’m going to guess somewhere in their auction rules/procedures this is spelled out.  

So my numbers are pretty much guessing your market and those price points may be worthless.

I've seen plenty of properties, bought on Sherif sale and got into foreclosure again because the buyers couldn't fix it up - and they couldn't sell it without completing the violations.I guess, it depends on location, but around here - you're lucky to buy REO and keep it......it was like winning a lottery.

After gaining experience in my own multifamily deals, becoming educated through multifamily syndication courses (thanks @Michael Blank), attending dozens of summits and meetings, listening to hundreds of multifamily podcasts, reading, networking, analyzing hundreds of deals, and making offers for the past two years, guess how many large deals I got under contract?

Looking back, it’s kind of silly but the first book I read that got me started was, you guessed it, Rich Dad Poor Dad, that same week I also read The Richest Man in Babylon (which I think was mentioned in Rich Dad).

I guess what I am wondering is if I'm looking at getting into this at the wrong time or the wrong markets.

My guess is he knows you will find termite damage and use that to lower the offer price, as you should.I would be extra careful about other aspects of the inspections also, it doesn't sound like this seller is very honest or trustworthy. 

@Jay Hinrichs Thanks I guess you learn something new every day in this business. 

@Mike Troyke I guess I would phrase it not as you are "getting points", but you are paying points.

I'm guessing that's not much in Florida, especially around a campus.