Hi Aaron - This is a great opportunity to educate the seller as to why the property will sell at a discount.

If the borrower dies, they use the policy to buy the house (at a discount of course).

We currently have discounts negotiated with several of the local contractors as well as service industries, such as we just negotiated a 30% discount for paint and flooring from Sherwin Williams.  

If you have 3-4 evictions going on simultaneously, the costs will eat you alive and you will likely rather sell some of these properties at a discount or at terms favorable to your buyer.

Repairs are made quickly and properly, lines of communication are kept open and I even give a rent discount at Christmas to good tenants.

You can closing costs, you can also pay discount points on a loan to reduce the interest rate.

Now, for what you said, if the liens plus the repairs and holding cost are equal to ARV, I would either negotiate the purchase price or let it pass.In the other hand, and I have done it a couple of times, after I get the price that I want and after I take possession of the property, I go to the county/city and I ask them directly what needs to be done to correct the violations and start a negotiation process to get the liens clear at a significant discount.

-I work for a flat rate broker and can discount my commission percentage to whatever I want.

They will give a pretty deep discount for cosmetic defects.960 Sherman St, San Diego, CA 92110

I took your question to mean you bought the note at a discount, and the proceeds were more than you paid, but still less than the total amount owed on the note.