What a Buyer’s Funding Source Says About Their True Intent

If you want to stop wasting time with flaky buyers, there’s one powerful filter you should start applying immediately:

How are they funding the deal?

It’s not just a logistical question. The way a buyer plans to fund a purchase gives you deep insight into their strategy, risk tolerance, and actual motivation, whether they’re all-in and ready to close, or just kicking tires.

This article will walk you through:

• The four main types of funding (cash, hard money, private money, and conventional)

• What each one reveals about the buyer’s mindset and urgency

• Red flags to watch for (so you don’t waste time)

• How to tailor your pitch and your follow-up based on funding

• The scripts to use when you want to dig deeper without sounding confrontational

1. Cash Buyers: The Illusion of Speed

When someone says they’re a “cash buyer,” you might assume it means quick close, easy paperwork, no delays.

But here’s the truth: “Cash” means nothing without context.

There are three kinds of “cash buyers”:

• True cash buyers with liquid funds available

• Buyers using partners’ cash (which may come with strings attached)

• Buyers planning to wholesale (assigning to someone else with cash)

What true cash says:

These buyers are often experienced, decisive, and care about ROI and deal velocity. They don’t like wasting time and are usually more open to as-is conditions and quick closes.

Signals to confirm:

• “I can show proof of funds today.”

• “I’ve done 10+ deals this year.”

• “We can close in under 10 days.”

What partner-cash says:

These buyers might seem legitimate but are dependent on someone else’s green light. That creates risk.

Signals to confirm:

• “I have a capital partner reviewing this.”

• “Let me double-check with my funding guy.”

• “It depends on what we move this week.”

These buyers may drag negotiations, ask for changes late, or disappear when their partner changes their mind.

What wholesale-cash says:

These buyers say they’re paying cash, but they’re looking to assign it. Nothing wrong with that, unless they’re not transparent.

Signals to confirm:

• “Is this assignable?”

• “Can I show this to my partner?”

• “What’s your policy on double closes?”

If you get that whiff of vagueness, ask them directly: “Are you planning to assign this or close on it yourself?”

2. Hard Money: High Pressure, High Urgency

Hard money lenders give short-term loans (usually 6–12 months) based on the value of the asset, not the buyer’s credit.

That creates built-in urgency. The clock starts ticking the moment they borrow.

What this says about the buyer:

• They’re likely a flipper or BRRRR buyer

• They’re counting on a fast turnaround

• They care deeply about ARV and rehab timeline

These buyers are usually aggressive and motivated, but any delay can kill the deal.

Red flag: If a buyer is using hard money and also dragging their feet, they may not have experience or they’re waiting for something else to fall into place.

Pitch tip: Focus on speed and certainty. Use phrases like:

• “We can close before your interest starts ticking.”

• “Title is already clean, you’ll save a week.”

• “The rehab estimate we ran might help your lender too.”

3. Private Money: Trust-Based but Unpredictable

Private money comes from friends, family, or small groups of investors. It’s often based on trust and relationships.

Some of these buyers are seasoned. Others are new.

What this says about the buyer:

• They might need longer due diligence to reassure their backers

• They may request additional information (comps, rehab quotes, surveys)

• They’ll be price-sensitive but flexible on terms

Buyers using private money are in-between cash and hard money, less urgent, but still serious.

Red flag: If they can’t articulate where the money’s coming from or keep saying “I’m working on it,” the deal may never get funded.

How to adapt your pitch:

• Offer to help with materials they need: “Want a contractor bid to show your lender?”

• Use certainty language: “You’ll get everything you need to move this forward.”

4. Conventional Financing: Rare, but Possible

Most wholesalers and investors deal with off-market, distressed, or non-retail properties, which don’t usually qualify for conventional loans.

But every now and then, a buyer will say they’re getting a traditional mortgage.

What this says about the buyer:

• They’re not a flipper, most likely a buy-and-hold investor

• They’re looking for rental-grade condition or minimal rehab

• They’re focused on DSCR, cash flow, and long-term yield

Conventional financing brings delays, appraisals, and underwriter scrutiny, which kills many creative or off-market deals.

If you hear this:

• “I’m pre-approved for a loan from my bank.”

• “My lender is waiting on the appraisal.”

Ask which bank and how far along they are.

Adapt your approach:

• Position the property based on income, stability, and comps, not just ARV

• Ask about their approval timeline

• Preempt objections around appraisal by offering clean documentation

How to Ask About Funding (Without Sounding Suspicious)

Many buyers don’t like being grilled. But you still need the truth.

Here are some soft, consultative ways to ask:

1. "Just so I can prep the title team, how are you planning to fund this?"

This sounds like you’re just helping paperwork go smoother, not interrogating.

2. "Are you using your own capital or funding partners?"

This allows them to clarify without being defensive.

3. "Do you usually close in your own name or through an end buyer?"

This reveals if they’re assigning, without calling them out.

The Follow-Up Funnel: What to Ask Next Based on Their Answer

Here’s a cheat sheet:

If they say: “Cash buyer”

• “Great, do you typically close in your own name?”

• “Mind if I ask how quickly you usually close?”

• “Do you have a title company you prefer?”

If they say: “Hard money”

• “Got it. Do you already have the lender lined up?”

• “Are they waiting on anything from you?”

• “Need anything from me to help with underwriting?”

If they say: “Private capital”

• “Nice. Is this your go-to partner or a new one?”

• “Do they usually need anything special from sellers?”

If they say: “Conventional loan”

• “Are you already approved?”

• “Which bank are you working with?”

• “Would it help if I sent over income docs or a rent roll?”

Watch Out for These Red Flags

No matter the funding type, certain signs always mean danger:

• “I’ve got a few buyers I might bring in.”

• “We’re pulling funds together.”

• “Once I get my other deal closed, I’ll be ready.”

• “I’ll know more by Friday.”

These all mean the same thing: They’re not ready.

If they won’t commit to a close date, provide proof of funds, or explain their capital structure, they’re wasting your time.

Creative Options: When to Bring in Financing Flexibility

Sometimes a buyer’s funding is shaky, but they still want the deal.

Instead of walking away, you might:

• Offer a longer closing window if they show progress

• Introduce them to a hard money lender

• Propose seller finance if it fits the seller’s goals

Your job is to filter, not reject, especially when a little creativity keeps the deal alive.

Motivation Hides in the Money

You don’t need to be a loan officer to close more deals, but you do need to understand what a buyer’s funding tells you:

• Speed or stall

• Certainty or chaos

• Assign or acquire

• Flipper or landlord

Ask early. Read between the lines. Use funding type to guide your pitch, your follow-up, and your expectations.

Because the more you understand a buyer’s money, the faster you’ll know if there’s a real deal or just a time sink.