HML as exit strategy in wholesaling
I've come to the conclusion that using hard money lenders as a backup exit strategy is the way to go for wholesale deals. What a confidence boost. You can look a troubled seller right in the eye and tell them without a doubt, "I will buy your property for this amount RIGHT NOW". Even if every investor in the state decides to shut their phones off for the next month, you'll be able to save a distressed seller from further ruin.
My question is, in the early going is it too risky to grab a hard money loan and attempt a rehab? I would hate to go forward with a HML and lose points, hurt my reputation, and burn a bridge. At what point is this alternate exit strategy worth exploring? I have 5 HML's lined up, but I'm a bit torn if it's worth the risk on my first couple deals...