Using hard money just to leverage offers

[Ryan Z.]

I know it's not traditional for the hard money lenders to lend just for purchase/refinance w/o rehab.  However, if there are some lenders out there, does it seem like a decent idea to pay the fees just to put some 'cash' offers out and grab a deal at a discount that outweighs the cost of points charged?  I would do this only w/ a preapproval already lined up.

Ie: A property listed at 250k, offer 180k all cash and refi out w/ traditional mtge.  Obviously this is all conditional on the deal.  But treat the above only as an example for demonstration sake.

Has anyone done this?  Does it not work for certain reasons?