How to get around EMD

[Eseta Matasau]

My husband & I are looking into buying an investment property to wholesale.(Our first deal.) The house is a short sale listed at $274,500 but valued at $393,900. In California where we live EMD is usually 3% (on average), but being new investors it's going to be hard to fork up that much money out of pocket. Here is my other plan:

We have a private lender who will 100% finance our deal. Thus we make an EMD of $100 and purchase at $280K. (And maybe have seller pay half of closing costs?)

Any experienced investors think this could work? And if not, what other way could we go about it? Any advice would be appreciated.