All are common and you are getting a discount on early termination fees!

Owner went with my discounted bank loan offer because I had a realistic plan for the property that could get zoning permits.

Since the property isn't "stable", I'd look at as a discounted CF UW vs. just capping an NOI.

I am coming across flips in my day-to-day review of the market where it's obvious the investor will be taking a loss, due to them buying near our local peak prices and finishing up the project afterwards Thanks Maya,I know the generaly the market in San diego began to go down in prices, my plan to make the research and the connections and buy in  a couple of months in discounted prices. 

We give out Pro discount codes for those who attend.

Many of the solutions you have to deliver to get substantial discounts on property would have to be solutions to headaches that nobody else (including the seller) wants to tangle with.If you can't find any compelling problem in this section, you should seriously consider moving on with your life by referring them to some sort of service provider that might be more appropriate for them.

Should the purchase offer be discounted by that spread? 

You'll want to feel reasonably confident you can hit closer to 2.75 to 3.00 times the rental rate to have a decent margin to compensate yourself at all for your time and effort.As others mentioned, your biggest risk with arbitrage is that you will not be able to cover your cost due to competition or due to regulatory conditions. 

We are making very good margins.

If they have a disposition list of buyers that buy discounted on market properties, then they will make offers.