House flipping is more popular than ever. Recently, over 207,000 homes were flipped for profit — and that number keeps climbing.
There’s no secret as to why so many people want to start flipping homes. It’s profitable and can net you a gross profit of over $60,000.
But what if you don’t have the cash to flip a home? We’ll show you how to flip a home for profit without any start-up cash.
Wholesaling Options
Wholesaling is a way for you to invest in a place, make money, and never actually own the property. Here’s how it works:
- Find a property to flip and negotiate the terms for the purchase price and closing costs
- Get the property under contract
- Find an investor to buy the contract from you
Because you never take ownership, wholesaling helps you learn the ropes and earn some cash. You’ll do best with this method if you build a dependable network of investors.
Find Trustworthy Money Lenders
Hard money lenders can give you the initial cash infusion to make your dream a reality. With this kind of loan, keep in mind you’ll have to pay back interest.
While the interest can be high, it’s a great way to quickly round up some cash when you’ve got none. Find a group you trust with experience in house flipping that can help you understand your needs best.
Investing Partnerships
You don’t have cash but you have the time to find great properties to flip. What you need is someone who can partner up with you.
Find someone you trust to help you finance your house flipping dreams. It can be someone with a successful business, like a doctor or lawyer, or a friend and family member who wants to join you.
You both have to be transparent and trusting. Expect to split the profits fifty-fifty with this type of partner.
Use Your Home Equity
If you already own a property, you might already have a handy source of cash. Consider using built-up equity from one property to purchase a house you want to flip.
There are two ways to do this. You can take out a line of credit with your equity, or you can refinance your mortgage and get money from the difference between the two loans.
Either way, these are two sources of quick cash you can use however you please. Invest that money in flipping a house, pocket the profit, and pay yourself back.
Flip a Home with No Cash on Hand
If you’re looking for how to finance a home flip with no money, you’ve got to get creative. These are just a few ways you can flip a home without any cash on hand.
Start small so that you learn the ropes of the house flipping business. Once you get more experience, you’ll start earning bigger and better profits.
Be smart and finance your dreams without sacrificing your savings. If you’re ready to get into the exciting world of home flipping, reach out to our house flipping experts today!