Flippers can be great buyers:

They move fast, understand repairs, and are often repeat clients.

But not all flippers are created equal, especially those who rely on hard money.

Yes, hard money can make quick purchases possible…
But it also introduces risk, red flags, and delays if you're not paying attention.

If you want to protect your deals, get paid on time, and only work with closers, then you need to learn how to qualify flippers who are using hard money before you let the deal go under contract.

What Is a Hard Money Buyer (and Why It Matters)

A hard money buyer is someone who uses a private or asset-based lender to fund their purchase, usually for flips, not long-term holds.

Instead of traditional financing, they get:

• Short-term loans (6–12 months)

• Higher interest rates (8–12%)

• Lower LTVs (usually 65–75% of ARV)

• Faster closings, if the lender is solid and buyer is prepared

But here’s the catch:

Hard money buyers are not all the same.

Some are experienced and prepared.
Others are first-timers or over-leveraged.
Some work with reputable lenders.
Others bounce from one sketchy funder to the next.

You have to spot the difference, fast.

The 6 Risks You Face With Underqualified Flippers

Before we talk about how to qualify them, let’s be clear on why it matters.

Flippers using hard money can bring six major risks to your deal:

1. Funding falls through last minute

Hard money lenders still underwrite:

• The deal

• The borrower

• The rehab plan

If anything spooks them, they can back out, fast.

2. The buyer lowballs or retrades late

Some flippers get under contract first, then go to the lender.
When the numbers don’t work, they come back asking for a price drop.

3. Appraisals kill the deal

Hard money lenders often order appraisals or BPOs.
If value comes back short, they won’t fund the full amount.

4. Closing timelines stretch

They say 10 days.
Then title has a hiccup.
Then the lender needs one more doc.
Then the buyer disappears over the weekend.
Suddenly it’s 30 days, and the seller is furious.

5. The buyer overestimates ARV or underestimates rehab

Bad numbers = no funding.
And even if they do close, they might not finish the project, hurting your reputation.

6. Wholesaling without permission

Some hard money flippers are really wholesalers in disguise, hoping to assign or double close without telling you.

The 5 Key Questions That Reveal a Flipper’s Real Readiness

If a flipper says they’re using hard money, don’t panic.
Just qualify them fast and early.

Here’s your script:

1. “Who’s your lender?”

This sounds simple. But it tells you a lot.

• If they name a real company (e.g., Kiavi, Lima One, LendingHome), great.

• If they hesitate or say “a private guy,” ask for details.

• If they say “we’re still figuring it out”, they’re not ready.

Pro Tip: Google the lender while you talk. If they’re obscure or shady, beware.

2. “Have you closed with this lender before?”

This is huge.

Experienced flippers have a track record with specific lenders.
They’ve done the paperwork, know the process, and have smoother closings.

If it’s their first time, expect delays and surprises.

3. “How much are you putting down?”

Hard money lenders rarely fund 100%.
Most require 10–20% down plus closing costs and some reserves.

If the buyer doesn’t have cash in hand, that’s a red flag.

You can also ask:

“Do you already have your down payment and reserves ready?”
“Have you sent in your earnest money yet?”

Buyers who dodge this question are often over-leveraged or unprepared.

4. “How long do you need to close?”

Hard money can move fast, but only with a ready buyer.

If they say:

“We can close in 7 days.”

Ask:

“Have you already submitted the deal to your lender?”
“Has title work started?”
“Are you waiting on any appraisals?”

Buyers who have already begun the funding process are much safer.

5. “How many flips have you done with hard money?”

This question separates rookies from professionals.

First-time flippers are more likely to:

• Miss timelines

• Panic at issues

• Underestimate rehab

• Lose funding

• Try to back out

If it’s their first deal, you’ll want tighter terms, shorter deadlines, and maybe even non-refundable earnest money.

Bonus Question (If You Suspect Wholesaling)

“Are you planning to assign or double close?”

Some flippers claim they’re buying with hard money, but are just using that excuse to shop the deal.

Be clear:

“We don’t allow assignments unless disclosed and approved.”
“We’re happy to double close, but title must be aware and buyer must fund.”

How to Spot Red Flags in the Buyer’s Behavior

Watch for these signs that a hard money flipper isn’t really ready:

They haven’t submitted the deal to their lender yet

If they’re not under review, they’re just shopping. No money is moving.
No approvals are happening. They’re not serious.

They won’t share their lender’s contact info

Sometimes you need to talk to the lender directly, especially to verify timeline.
If the buyer resists, they may be stalling.

They hesitate to send earnest money

Even with hard money, the buyer should have enough liquidity to put $3K–$10K down.

No EMD = No confidence.

They don’t have an entity set up

Most real flippers buy in LLCs or trusts. If the buyer hasn’t even created one yet, they’re just getting started, and you’re probably not their first priority.

They overpromise on closing speed

Watch out for:

“We’ll close in 5 days.”
“No inspection needed.”
“I’ve got cash if needed.” (but then it’s hard money)
“My lender funds everything.”

Flippers who try too hard to impress are often not telling the full truth.

Setting Boundaries That Protect You (and the Deal)

Once you’ve identified a flipper using hard money, and decided they’re worth working with, it’s time to protect your deal.

1. Include hard deadlines with consequences

Example:

“Buyer must close in 14 calendar days or contract is void.”
“Buyer agrees to a $100/day penalty for delays after Day 15.”
“Earnest money becomes non-refundable after inspection.”

This keeps everyone accountable, even if the lender slows things down.

2. Ask for lender contact info + funding timeline

Make it part of your contract process:

“Buyer agrees to provide lender name, rep contact info, and funding timeline within 48 hours of acceptance.”

If they don’t comply, you can pivot.

3. Require earnest money within 24–48 hours

This shows they’re liquid and serious.
Flaky flippers disappear at this step.

4. Don’t stop marketing the deal until earnest is received

You’d be surprised how many deals “fall apart” because of a ghost buyer.
Keep sending it to others until money hits escrow.

5. Work with investor-friendly title companies that understand hard money

They can:

• Talk to the lender directly

• Speed up underwriting

• Troubleshoot docs

• Keep you informed

Having the right title partner smooths the process for everyone.

Knowing When to Walk Away

Even experienced flippers with hard money can fall apart.
Be ready to cancel the deal when:

• The buyer misses multiple EMD deadlines

• Their lender won’t confirm anything

• They ask for major price reductions mid-process

• They ghost when an issue comes up

• You sense they’re trying to assign without permission

You’re not just managing money, you’re managing momentum.

If the buyer kills the momentum, the seller may back out or lose trust.

How Goliath Helps You Track These Buyers

With Goliath, you can:

• Tag buyers as flippers, landlords, or wholesalers

• Score buyer behavior (ghosts vs. closers)

• Log red flags (missed deadlines, failed funding, lowball tactics)

• Segment lists so you only send deals to real buyers next time

Plus, when a flipper closes well, you can keep them in your hot list, and even automate your next outreach.

Flippers Are Fine, But Vet the Funding

Hard money isn’t bad. In fact, it’s the engine behind thousands of flips per year.

But when your buyer is using it, you must:

• Ask the right questions

• Spot early red flags

• Set protective boundaries

• Track everything

Because deals don’t fall apart when buyers close.
Deals fall apart when buyers aren’t ready.

So make sure your flippers, and their lenders, are solid.