When I finance with private lender, can I say it's a cash offer?

[Lilly Fang]

I am under contract with a wholesaler, and the contract says the assignee will be paying cash.

I do have enough cash. However, I would rather use private lenders' money and I have it ready, which are from two close friends. Will escrow have problems with I use private lenders' money? If not, can my friends wire money directly into my account, and I can use that money to pay for the property?

One friend actually suggested that I wire money directly into my account. However, the other friend (who is a loan broker) said it's better to do a note, so that I can refinance as a rate change in 2 months.

[Bobby Feinman]

@Lilly Fang

I was a builder for almost 20 years before becoming a lender. A little trick that we used when we wrote offers was the following verbiage on the financing:

"Cash or existing credit line"

It's not a lie and it sounds pretty much the same as cash.