Matthew Benning
It can be hard to imagine that you could flip a home and make a profit without investing a dime of your own money. It’s possible, and some people are doing it every day—without using any cash of their own. Read on for some crucial details on flipping homes for a profit with no money down.
Hard Money Lenders
Hard money lenders are individuals or companies with the money to lend to you, with a few strings attached. If you want to flip a house, these types of lenders may be able to help with the financing—even if you don’t have perfect credit or any cash on hand. Hard money loans can be obtained in as little as 24 hours. That’s because hard money lenders don’t need to do a lot of research before they make their decision; they’re investing in the property themselves, so they know it’ll be profitable.
And while hard money loans can require more interest than traditional mortgages, hard money lenders typically don’t care about your credit score at all. They’re looking at your ability to repay them for their investment in the property. So if you’re wondering how you can flip a home without using any of your own money, using hard cash may be just what you need!
Private Loans
One way to flip a home for profit without using your own money is through private loans. This type of financing isn’t the most common way to buy a home, but lenders out there will lend you up to 75% of the purchase price.
The best part is, you’ll only need to make monthly payments on the amount you borrow until it’s time to sell your property. And if you do end up making a profit from the sale, those extra funds will go towards paying off your original loan amount. The only downside with this plan is that private lenders often have a higher interest rate than a regular mortgage. But if you’re able to turn a profit after flipping the house, then this shouldn’t be an issue!
Crowd Funding
If you’re looking for a way to make flipping homes without investing any of your own money, one option is crowdfunding. This works by borrowing the money from other people who want to invest in your project, like friends and family or members of online communities. These people will contribute money to your project in exchange for a share of profits.
You can find many websites to post your projects and solicit these sorts of investments. For example, if you wanted to start flipping houses that would generate $1000 profit per month, you could ask for $50,000 and offer investors a 15% return on their investment. This means that if you could flip ten houses per year at $1000 profit each, those investors would earn $15,000 per year! That’s not bad, considering they only put up $5000 as an investment.
Wholesaling
There is more than one way to flip a home without investing any money of your own. Wholesaling homes is another way. This process involves finding distressed properties needing renovation to be sold for profit. You can then acquire these properties through wholesalers or banks at low prices that will allow you to make a profit when they are renovated and resold. The best part is you do not have to come up with the money yourself, which means this is an affordable option for people who don’t have lots of cash available for investing in real estate. Unlike with many other flipping methods, there’s no risk involved because you’re not putting your own money on the line! You only need the funds required for the necessary rehab work to flip the property.
Seller Financing
If you’re buying a home in an area where the market is over-saturated, the seller may be willing to finance your purchase. This means that if you can’t find any other way to buy the property, the seller will still sell it to you at a specific interest rate. For example, if you can’t afford to make your monthly mortgage payments when they come due, the seller will take over your mortgage for higher monthly payments. You might also have to pay extra upfront for this type of transaction.
Conclusion
You don’t need a lot of money to start flipping houses.
However, you will need to know what resources are out there to get the best deal. The resources discussed in this article can help you without breaking the bank. The better your resources, the more money you can make flipping homes. So what are you waiting for?
