The owner tells me they are motivated to sell and willing to considerably discount the property for a fast transaction, without realtors, commissions, closing costs, etc.  

You can also refer leads you get to a Realtor when the there is not enough equity, or the lead does not want to sell at a discount and has time to list it (ie. not pressed to close fast for cash).

Maybe I can still qualify for a family discount based on the name similarity...I'll have to look him or her up!

Volunteer labor, donated supplies and materials, deeply discounted materials provided future forced equity.

If you think it will be, discount the price accordingly and see what happens.

While there are some hard headed types that are all about their rights, in reality unless you have deep pockets it's better to retreat and live for another day!

in other words, when you sell the house, thats when you negotiate a discount on the payoff?

I'm thinking a steep discount is in order & I fully intend to give him a hard time if I see him at the next TREIA meeting!

On the phone she kept saying she wanted a "fair price", and my response was that it would be a fair price for both of us, but yes, I am expecting a discount because the house needs repairs.I know homeowners are delusional sometimes, but I believe it is my job to help them understand the real value of their home.

What kind of discount are you looking for?