Appraiser views it:The discounted price a wholesaler ties it up in contract for does not meet the definition of market value that appraisers use.

A wholesale house would be one that is available at a significant discount from that desired by a regular home-buyer, a retail house. 

We are finding that if we get a good discount on the property when we buy  and manage the process closely that our returns are hitting 15-25% annual return (before selling the front end).Higher rate = lower sale price but easier for the buyer to cash you out and refinance (easier to appraise).  

There should be an underlying issue that is causing them to sell at a discount or with some terms.

@Dawn Vought, when we run out of our own inventory, we use PJ's Discount Merchandise.  

The second example will present incorrectly if using excel function because the first years investment will be discounted, presenting a higher IRR.

They were literally holding the entire home up, so I would assume the basement wall no longer had much weight on it.Re-sale would be my concern & most of those we viewed in the affected area are heavily discounted with some empty & on the market >174 days.

Had they been in closer contact with you they may have discounted you as a suspect, saying "no, not him, I'm working with him".

People claimed to know people that had success- the pitch I heard was to challenge title, then they'd negotiate to buy the note at a discount from the bank for 20ish cents on the dollar, then renegotiate the loan terms with the original borrower at 80% and favorable interest or something. 

I was thinking about applying a discount factor to these homes, since they are harder to resell, harder to get loans on, loans are often and a lower LTV, and they will probably have higher maintenance costs long term (I don't have enough experience to say how much).