Are you saying you'd like to buy a turnkey property from a flipper before it hits the open market in hopes that you will get a discount or first crack to minimize open market competition (that will likely work in the flipper's favor today)? 

This investor has one of two potential outcomes, A: that the property will sell at auction for more than he bought the mortgage for, or B: that it wont sell and he takes title to the property.Typically the investor has purchased the mortgage at a discount.

I'm looking to expand my referral base and offer a fee for any leads that move to close equivalent of 10% the negotiated discount on the note.

The key is buying at such a discount that even a moron will see that they are a good deal.Some of my local competition "sell" newbies quite a bit that a property is a "good" deal when it is far from it.

Clearly being able to find and purchase a unit at a discount is the best option for a real estate investor.

Most builders & investors when sitting on inventory will sell at a discount to close out.Yes, everybody wants top dollar but sometimes it is smarter to cut profits to move on.

My primary concern is that some/most of the tenants might mind about this, thus it will takes longer to have the rent income going (or I probably have to discount the rent when the tenants ask for it.

Buy real estate at deep discounts.

Discount that 30% to get $49K.

The more comfortable the bank is with your ability to close, the more of a discount you will likely be able to negotiate.