There are lots of reasons why the person isn't getting a loan even though they have that much cash: could be maxed on the number of loans (10 usually). credit issues, contractor (1099) employment, etc  It can sometimes help if the buyer can provide a credit report to make the seller feel more comfortable.Good luck and welcome to BP!

. $2000 EMD is a lot without out an option period to get it under contract and our buyers list is not that strong.

Then you wholesale that property to the end buyer using an assignment contract.   

If it's a good enough deal tell the seller that you'll deposit the $2,000 when you have your end buyer in place. 

@Jon Ankenbauer speaking from a lenders point of view, the seller carried seconds went out some time ago with most of the main buyers of mortgage loans.

Are you a first-time home buyer?  

At a macro level the owner is trading a higher price ($130K over appraisal) for favorable terms to you, the buyer (5% down and not having to quality through a bank). 

On the B to C transaction, is "C" buyer typically another investor with cash or private money?

As they move up the net worth ladder investors tend to want less headaches and move into higher quality assets where ongoing cash flow is a little less but long term equity growth prospects are high.There is generally not demand for low income areas except for investor buyers searching for yield to deal with a headache versus ultra high quality areas where investors will usually pay  a premium to a seller to own in an area.

If you agree on price and your buyers are approved for financing, your attorney relative should be able to set it all up including the contract if both parties are comfortable with terms.