Alvin is correct. private lenders can be used as the bridge to get you into the property before you can qualify with a bank. 

It's a bridge to traditional financing. 

Even though it’s been a very unpleasant experience, I still want to avoid burning bridges.

In my coaching I call this "The Gap" and "The Bridge".

You don’t want to be in HELOC forever though as rate is fluctuating so you should use it for short term bridge financing.

Local banks or bridge lenders will be the best option for distressed properties as well. 

You need to see clearly the warning signs, the roadblocks and the signs that will tell you to stop because the bridge is out.

Its best to shop around and network with some lenders before you purchase, especially if using hard money or a high interest bridge type loan. 

But maybe you are right, and the broker can push the seller from the bridge harder if they see a profit.

I’m really looking at this as a way to eventually bridge my career out of health care and into real estate investment and to begin to build a future for myself and my family as I just don’t see it happening punching a clock day in and day out.