Private seller wont accept hard money -- any solutions

[Fang Li]

Hello everyone!

I'm new to real estate and currently don’t own any properties, but I’ve been learning a lot recently. I’m trying to work with a seller who deals in off-market properties, but they only accept cash or an “unrestricted line of credit” for payment.

I have about $200k in liquid funds and want to invest it all, but I'm running into challenges with payment methods. Here’s my strategy and the issue:

Current Strategy:

1. Buy a property for $200k with cash.
2. Refinance after 6 months to recover $150k, leaving $50k in the property.
3. Use the recovered $150k to invest in another property, but I need to save up more money to repeat this process.

Alternative with Hard Money:

1. Use hard money to buy properties worth up to $800k.
2. Refinance them later to recover my initial investment.

For the hard money scenario, obviously I wont be buying them all at once, but rather buy a property worth 350 -> refi -> get HML -> repeat, until my money has ran out.

However, hard money can't be used for cash offers directly, as it's typically a loan. I'm looking for ways to use my $200k efficiently and invest it somehow or even try to convince the seller..I've considered lines of credit, personal loans, and options like SoFi, but I'm not sure which will work best in this scenario. Is it possible to get a HELOC on an investment property after I Refi it, which I could then use along with my cash savings? Any advice or solutions to get around the hard money dilemma would be greatly appreciated!