If you're running a business, you either make money or join the vast majority of newbies who fail.FYI, I buy properties at HUGE discounts all the time.

I am looking for discounted commercial mortgage notes.

What have you been doing to find desperate sellers who will sell you their property at a HUGE discount?

Of course follow the normal principles of flipping, buying at a discount and then selling at FMV ect... but get it done so that you can move on.

You will need to find a buyer who will be okay with the fact that it is a listed property because you got it at such a discount.

A crude model where all discounting is done in year 0 can't account for this fact.

Listed with a discount broker.

That being said, how likely would it be to locate such deals in declining markets such as mine (Las Vegas) in which the only apparent opportunities to profit at enough of a discount are dominated by short sales and REOs, as the majority of owners motivated to sell are those who are severely underwater (75% of every mortgage holder in Vegas).

Have you ever bought a larger building at a significant discount?

as far as your note goes, it seems pretty high. 10k below fmv is like a 12% discount based on your #'s, but throw-in the repairs (if you pay to get it done, you could be looking at around 5k -off the wall guesstimate), and it's not much of a discount.