Siva.

"........the properties must be discounted at least 40%, no exception."? ....''

He means his investors will only pay 60% of fair market value, at the very most. They are looking for very good bargains. If property would sell for $100,000, the most they will pay for it is $60,000.

Most likely what they want to pay is the 60% of the value, minus all the repair costs. So if the property I use as an example above needs $20,000 to finish it, they will only pay $60,000- $20,000, or $40,000 for the property.