He does not want to sell on the low end as is.

If the price they are quoting is enough below that market value, you could possibly do well, but check everything out first and don't be afraid to make a low offer.

What's worse is that many all too many people now believe that the real estate bust was the result of an unbridled free market run amok when in fact it was the result of the inherent moral hazard of simultaneously encouraging the "ownership society" through a Federal Reserve policy of artificially low interest rates and government bailouts, quasi-government corporations backing loans, and other tinkering to prop up an otherwise slumping market.

How do you find properties at a low enough cost to make the numbers work?

Hypothetically - Chances are, some houses that are listed for more than 120 days would not have been maintained well, they would be sold as-is, banks will be willing take a very low price as none turned out to buy that house - That would be something you might wholesale.Dont look for 1% rule or 2% rule when you want to wholesale.

An approach that makes them comfortable even though you put up low earnest money.

Is the $105K price on the low end of recent (<90 days) comparable sales?

Low being 88k and high being 218k.

In your offer to the bank I would include a contractors estimate of repairs.This lets the bank know that while your offer is low, if they want a good price they need to fix something before its sold.Several of my short sales where done this way, the first counter was high and when I asked the bank if they looked at the enclosed estimate of repairs they came back and approved the sale.

Although it has not been called due on myself (likely because I use a land trust) I know 3 people personally that didn't know what to do when it was called due on them.Post from other forum:Its been awhile since I've been here, been laying low on R.E. but I have a little issue that I could use some input on?