Payments must be postmarked by the 5th to receive an early payment discount.

But it is all exclusively for the benefit of the IRA.

Is it treated as a discount on the purchase price?

I am also available to service or assist residential real estate investors interested in gaining more knowledge about exclusive off-market properties in Houston, TX.

They have nothing to lose so they have little motivation to sell at a discount to you.

I owe 19k on the property and my interest rate is 4.8%If i go get a loan through my credit union i can probably get a 3.8% and my private  lender said he'd give me an early payoff discount of $3,500.  

If you are looking for a flip, you need to find a deeper discount.

Having these financing options give you the advantage of closing fast on a property, thereby justifying a lower offer.You need at least 25% discount in order to pull out the initial investment when you cash out refi. 

He may be asking you for an exclusive right to represent that if he doesn't make 4% you make up the difference (which if he already is getting from seller you are all set).

@John ThedfordPeople think that rentals are not glamorous, and discount their value.