This I learned from the competition in Atlanta - the advantage of being the first offer in hand with excellent terms.Meanwhile, I had about a week before closing to perfect my budget and timeline while walking hordes of contractors through the house - bless my agent's heart - plumbers, electricians, roofers, painters, HVAC installers... at one point there were so many contractor vans and trucks that we stopped up the street.

I have been successful offering private financing at 6% interest only payments to borrow cash and use as down payments.  

The only reasonable explanation I can find is they are supplementing with J.O.B. income, or perhaps living off the excess borrowed funds..Some part of their story is missing.

Long story short, it was charged by SEC that there was irregularities and they used borrowed fresh investment funds to pay for monthly dividends.

With mortgage rates so low it is almost a no brainer and easy to make money on the difference (borrow at ~4% and invest at 6+%) in relatively safe investments, nothing is risk free of course.

However, typically if you buy cash, that percentage tends to be lower than if you borrow.

It is then up to the borrower to make their own intelligent decision.Sorry for the rant but had to be said, for the benefit of others.

You should know exactly what you're agreeing to when they ask you to sign their one page assignment contract.Fourth, Most deposits to wholesalers are non refundable so make sure all of your questions are answered before handing over a check, preferably over email so it's documented.Fifth, Do not stop your diligence until you close.

A lot of people are borrowing from family members to start or trying to wholesale.

Unless your friend is very rich and is not worried about waiting a very long time, you would normally refinance and return the borrowed funds (plus interest, if any) if you looking to hold on to the property as a rental.