If I were in your position, I would start looking for money to close the deal. The seller is looking for you to take the home off his/her hands, and after you signed the contract with them, I feel like you should do your best to move forward if you can. You've still got 2 weeks to get this together so it's certainly not impossible. If you take the property off of the sellers hands and make money, then it's a win/win for both parties.
Perhaps I'm reading it incorrectly, but the confusing part about what you're saying is that it's "more than cash buyers would pay" yet you say that it is a great deal. If it's a great deal, then the cash buyers should be chomping at the bit as great deals are one of the hardest parts of investing, so it's one or the other. If no one else thinks they'll make money on it, how will you? The problem with finding money to do it yourself is that your money source is also going to want to know that you won't be upside down on it so that they can get their investment back.
You might need to re-look at what price you need the property at for it to make sense as an investment, and try to renegotiate to that price.
I thought that might be the other interpretation. Well in that case if it's a great deal and it makes sense to do it yourself then put a package together for your hard money lenders. You could always renegotiate your closing date if you need an extra week or two.
Send me some details on this property, I might be able to help.
As others mentioned the seller is counting on you to close on the deal. Especially since it's a smaller town like you mentioned word could get around quick if you don't follow through and it could hurt you.
Do the numbers still work if you use hard money to finance the deal? Best of luck.
If your cash buyers won't buy it, are you sure it's a great deal?
Brandon is right about this. I own eight properties in Mississippi and pay cash. I've never paid more than 40K for my investment properties.
If you want to meet and greet next week you'll have to meet me in Lake Tahoe, CA. I won't be back until December.