An educated buyer is a good investor. 

At the local REIA meetings, there are a lot of people who say they are wholesalers, but very few actually have a property under contract and are actively looking for a buyer. 

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?