I do a lot of discount work for elderly and disabled people.

Discount points are paid to everybody "wins" (I can't really explain it, but if want to chat send me a message and we can discuss as best i can how the bond market works).  6 months doesn't quite make the cut, but I'm sure its a compromise as a consumer protection, getting to the 1yr owner occupation requirement, and allowing an owner to potentially resell (lets face it, you can't effectively "disallow" somebody from selling).I think the guildines to 6 months on Title is to protect the lenders and the secondary market. 

But, the buyer of the unit will see that the roof is only 10 years from replacement, and he'll discount his offer price based on that.

I believe that if you buy during the exclusive period, the owner occupant cannot sell within 3 years.

In my market the fixer uppers are getting discounted the most so that could be an opportunity for you. 

The private lender will be exclusively on debt side, they do not have their name on the title report, they are the debt provider - so if something happens and the loan isn't paid they have the right to foreclose on that property and regain title or it is sold at an auction and they are repaid.

But the cap rate can change with a discounted purchase.

Now, I know value is mostly created by purchasing REOs at a discount.

LL Flooring seemed to have the best prices and I even got a 20% discount on top :)

100 year floodplain that's 44' deep isn't a reason to discount a property as potentially profitable.Enhance your location, don't leech off of others already enhanced location.