Wholesaling is all about speed. You lock up a property under contract, assign it to an end-buyer, and collect your fee. But here’s the painful truth: many assignment deals fall apart right before closing.

The main culprit? Funding.

  • End-buyers don’t have cash ready.
  • Their bank financing falls through.
  • They can’t meet the seller’s tight closing timeline.

For wholesalers, this means wasted contracts, lost credibility, and missed assignment fees. That’s where working with a private hard money lender changes the game.

How Hard Money Supports Wholesale Deals

1. Proof of Funds Letters for Your Buyers

Private lenders can issue proof of funds (POF) letters—often same-day—that make your end-buyer look like a serious cash buyer. Sellers and listing agents take these offers more seriously, increasing acceptance rates.

2. Fast Closings That Match Seller Expectations

Wholesalers often negotiate short escrows to keep deals attractive. A wholesaler hard money lender can close in 5–7 days, aligning with your contract deadlines and preventing fallout.

3. Funding Buyers Who Can’t Use Banks

Many of your end-buyers are investors picking up distressed or off-market properties. Banks won’t finance homes with:

  • Missing kitchens or bathrooms
  • Code violations
  • Deferred maintenance

Private lenders specialize in these deals, ensuring your assignment doesn’t die over property condition.

4. Backup Funding When Buyers Get Cold Feet

If your assigned buyer flakes, you don’t have to lose the contract. Some wholesalers use transactional funding or bridge hard money loans to close in their name, then resell quickly to another investor.

5. Higher Assignment Close Rate = Higher Earnings

Simply put: more funded buyers = more assignments closed. Even if you give your buyers the lender referral instead of taking on financing yourself, you protect your pipeline and earn more fees.

Example: Hard Money Saving a Wholesale Deal

📍 Sacramento, CA

  • Wholesaler locked up a distressed duplex at $300,000.
  • End-buyer’s bank denied financing because the property lacked a functioning kitchen.
  • Wholesaler introduced the buyer to a private lender who closed in 6 days at 70% LTV.
  • Assignment fee: $15,000 secured instead of lost.

This is exactly how assignment funding with a private lender protects your business.

How Wholesalers Can Work With Lenders Effectively

  1. Build a Preferred Partner List
    Work with lenders who understand wholesaling timelines and contracts. Ask upfront if they fund assignments or double closings.
  2. Educate Your Buyers
    Many beginner investors don’t know how hard money works. Provide them with a “financing roadmap” (POF, underwriting, rehab draws) so they’re ready to act.
  3. Stay Involved in the Process
    Keep communication lines open between buyer and lender. When you stay proactive, you avoid missteps that delay closings.
  4. Offer Financing as Part of Your Pitch
    Imagine telling sellers: “We work with investors who already have financing lined up and can close in a week.” That’s a credibility booster that wins contracts.

Common Pitfalls to Avoid

  • Working with lenders unfamiliar with assignments: Not all private lenders understand wholesale structures.
  • Not clarifying fee structures: Make sure assignment fees are properly disclosed and permitted in your market.
  • Assuming every buyer has cash: Build your process around helping buyers secure fast funding.

Why Wholesalers Choose Lending Bee

At Lending Bee, we’ve built programs that support wholesalers in California:

  • Same-day proof of funds letters to help your buyers win offers
  • 5–7 day closings that match assignment timelines
  • Experience with distressed properties banks won’t touch
  • Flexible structures for assignments, double closings, or backup funding

When you partner with us, you don’t just get loans—you get a wholesaler-friendly private lending team that helps protect your contracts and increase your close rate.

To sum up

Wholesaling is a volume game. The more assignments you close, the more revenue you generate. Don’t let lack of funding be the reason your deals fall apart.

By aligning with a wholesaler hard money lender, you ensure that:

  • Buyers always have proof of funds
  • Contracts close on time
  • You collect your assignment fee

Whether your buyer needs quick financing or you need a safety net, private lending is the edge that keeps your business moving.

Ready to boost your assignment close rate? Partner with Lending Bee today → Learn about our zero-points program for brokers here.