You should insist those to fill out an application on site.  3 weeks marketing time is a long time.

I suggest not taking the response from a loan officer but insisting that the scenario be presented to an underwriter.Cash is King if you can find that buyer. 

They insisted they didn't even need one, but knew I had to give them something so I reached into my pocket and pulled a $1.00 out in change and gave to them when we signed the purchase agreement. :0) Of course, I would recommend that if you are working with a private seller, you should always put money in Escrow account and not give directly to seller. 

Our Tenant kept begging to move in before the winter weather got too bad and insisted that what was left was fine and they wanted in.

My potential employer (the State of Wyoming) insisted I relocate even though I offered to commute. 

Their contract wording may even call it a fee rather than deposit, which means no recourse if they fail to perform.If they insist on getting the money directly, then write a check so at least you can reverse payment if something goes wrong.If you are working with a wholesaler for the first time I would have your attorney review the contract.

Real estate can be very location specific, so you already have an advantage in understanding where the better areas/neighborhoods are, the questionable or bad parts of town, you can also visit a property (no plane needed) if the seller insists on signing in person, etc.The only reason to initially consider out of state wholesaling is if you live in a megacity such as Los Angeles or New York City where wholesaling is a lot more complicated.I started off in my own backyard and have since moved into different cities within my state (Texas).

With all due respect, you seem to be either insistent or oblivious.

This is a commercial venture for you and the owner would probably insist on a triple net lease where you pay all taxes, insurance, and maintenance.

An attorney is a better source of legal information.You can always insist the offer be submitted with your letter.